UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201212 Marks150 Words
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Q5.

To what extent has the 74th Constitutional Amendment Act created a 'federation within a federation' in India ?

How to Approach

This question requires an analysis of the 74th Constitutional Amendment Act (1992) and its impact on the federal structure of India. The answer should define the concept of ‘federation within a federation’, explain the provisions of the Act that contribute to this, and critically assess the extent to which this characterization is accurate. Structure the answer by first defining the concept, then detailing the provisions of the Act, followed by an analysis of its impact, and finally, a balanced conclusion acknowledging both the strengthening and limitations of local self-governance.

Model Answer

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Introduction

The Indian Constitution, originally conceived as quasi-federal, has undergone significant transformations through amendments. The 74th Constitutional Amendment Act, 1992, aimed at strengthening local bodies – municipalities – by granting them constitutional status and functional autonomy. This Act is often described as creating a ‘federation within a federation’ by establishing a third tier of government, distinct from the Centre and the States. This implies a devolution of power not just vertically (Centre-State) but also horizontally, empowering local bodies to function as self-governing units with defined responsibilities and financial resources. The extent to which this characterization holds true requires a detailed examination of the Act’s provisions and their practical implementation.

Understanding ‘Federation within a Federation’

The concept of ‘federation within a federation’ suggests a multi-tiered federal structure where local bodies, possessing constitutional recognition and functional autonomy, operate as independent units within the larger federal framework. This implies a degree of fiscal decentralization, functional assignment, and institutional safeguards to protect their autonomy. It moves beyond a unitary system with devolved powers to a genuinely federal structure with multiple layers of governance.

Provisions of the 74th Amendment Act

  • Constitutional Status: Article 243G conferred constitutional status on municipalities.
  • Composition of Municipalities: Article 243C outlines the composition of municipalities, ensuring representation of various sections of society.
  • Reservation of Seats: The Act mandates reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women in municipalities (Article 243D).
  • State Election Commission: Article 243K established State Election Commissions to conduct regular and impartial elections to municipalities.
  • State Finance Commission: Article 243I mandates the constitution of State Finance Commissions to review the financial position of municipalities and recommend principles governing the distribution of taxes, duties, tolls, and fees between the State and the municipalities.
  • Functions Assigned to Municipalities: The 12th Schedule of the Constitution lists 18 functions that may be devolved to municipalities, including urban planning, regulation of land use, roads and bridges, water supply, public health, sanitation, and solid waste management.

Extent of ‘Federation within a Federation’

The 74th Amendment has undoubtedly strengthened local self-governance in India, but the extent to which it has created a true ‘federation within a federation’ is debatable.

Positive Aspects:

  • Increased Decentralization: The Act has led to increased decentralization of power and responsibilities to urban local bodies.
  • Enhanced Participation: Reservation policies have promoted greater participation of marginalized groups in local governance.
  • Improved Service Delivery: Devolution of functions has the potential to improve the quality and efficiency of urban services.
  • Strengthened Democratic Processes: Regular elections and the establishment of State Election Commissions have strengthened democratic processes at the local level.

Limitations:

  • Financial Dependency: Municipalities remain heavily dependent on State governments for financial resources. State Finance Commissions have not always been effective in ensuring adequate devolution of funds. (As per the 15th Finance Commission report, 2020, own revenue sources of ULBs remain limited).
  • Lack of Functional Autonomy: State governments often retain significant control over municipal functions, limiting their autonomy.
  • Administrative Capacity: Many municipalities lack the administrative capacity and technical expertise to effectively perform their assigned functions.
  • Political Interference: Political interference from State governments and local politicians can undermine the independence and effectiveness of municipalities.
  • Uneven Implementation: Implementation of the 74th Amendment has been uneven across different states, with some states being more proactive than others in devolving powers and resources.

Comparative Analysis: State Variations

State Level of Devolution (Funds) Level of Devolution (Functions)
Kerala High High
Karnataka Medium Medium
Uttar Pradesh Low Low

Conclusion

The 74th Constitutional Amendment Act represents a significant step towards strengthening local self-governance in India and has undeniably moved the country closer to a ‘federation within a federation’. However, the realization of this vision remains incomplete. Persistent financial dependency, limited functional autonomy, and administrative capacity constraints continue to hinder the full potential of municipalities. Further reforms, including greater fiscal decentralization, strengthening of State Finance Commissions, and capacity building initiatives, are crucial to ensure that urban local bodies can truly function as independent and self-governing units within the Indian federal system.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Decentralization
The transfer of authority and responsibility from a central authority to lower levels, typically local governments or other subordinate entities.
12th Schedule
A schedule to the Constitution of India that lists 18 functions that may be devolved to municipalities by the State legislatures.

Key Statistics

As of 2021, India has 4,608 municipalities, comprising 4,378 municipal councils and 230 municipal corporations.

Source: Ministry of Housing and Urban Affairs, Government of India (Knowledge cutoff: 2023)

According to a 2019 report by the Reserve Bank of India, the share of own revenue of urban local bodies in their total revenue is around 30-40%.

Source: Reserve Bank of India (Knowledge cutoff: 2023)

Examples

Kerala’s Kudumbashree

Kerala’s Kudumbashree, a community-based self-help group movement, demonstrates the potential of decentralized planning and local participation in addressing poverty and empowering women at the grassroots level. It exemplifies effective local governance.

Frequently Asked Questions

What is the role of the State Government in the functioning of Municipalities?

State Governments play a crucial role in providing financial assistance, assigning functions, and overseeing the functioning of municipalities. However, excessive control by State Governments can undermine the autonomy of local bodies.

Topics Covered

PolityGovernanceConstitutional AmendmentsLocal GovernmentFederal Structure