UPSC MainsECONOMICS-PAPER-II202010 Marks
Q13.

Discuss the relevance of decentralised planning after the implementation of the 74th Constitutional Amendment Act, 1992.

How to Approach

This question requires a nuanced understanding of the 74th Constitutional Amendment Act and its impact on decentralised planning. The answer should begin by explaining the pre-74th Amendment scenario, then detail the provisions of the Act related to urban local bodies (ULBs) and their planning functions. It should then discuss how the Act has facilitated, and the challenges faced in, effective decentralised planning. Structure the answer chronologically, highlighting the shift in planning paradigms. Include examples of successful and unsuccessful implementations.

Model Answer

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Introduction

Prior to the 74th Constitutional Amendment Act, 1992, urban planning in India was largely a top-down affair, dominated by state governments and central ministries. Local bodies lacked constitutional recognition and were often dependent on state funding and directives. The 74th Amendment, a landmark legislation, aimed to institutionalize urban local bodies (ULBs) and empower them to function as self-governing entities, including the crucial function of preparing and implementing plans for economic development and social justice. This amendment fundamentally altered the landscape of urban governance and planning, making decentralisation a constitutional mandate.

Pre-74th Amendment Scenario: Centralised Planning

Before 1992, urban planning was largely centralized. State governments held significant control over planning processes, resource allocation, and implementation. ULBs were often seen as mere implementing agencies, lacking the autonomy and capacity to formulate their own plans. This resulted in plans that were often disconnected from local needs and priorities.

The 74th Constitutional Amendment Act, 1992: A Paradigm Shift

The 74th Amendment added Part IX-A to the Constitution, titled “The Municipalities”. Key provisions relevant to decentralised planning include:

  • Constitutional Recognition: Gave constitutional status to ULBs, ensuring regular elections and a fixed tenure.
  • Functional Domain: Enumerated 18 functions to be devolved to ULBs, including urban planning, regulation of land use, and provision of basic services. (Article 243W)
  • State Finance Commission: Mandated the establishment of State Finance Commissions (SFCs) to review the financial position of ULBs and recommend principles governing the distribution of taxes, duties, tolls, and fees between the state and the municipalities. (Article 243-I)
  • District Planning Committee (DPC): Provision for establishing DPCs to consolidate plans prepared by Panchayats and Municipalities within the district. (Article 243ZD)

Relevance of Decentralised Planning Post-74th Amendment

Enhanced Local Participation and Responsiveness

Decentralised planning, facilitated by the 74th Amendment, allows for greater citizen participation in the planning process. This leads to plans that are more responsive to local needs and priorities. Ward committees, as envisaged by the Act, provide a platform for citizens to voice their concerns and contribute to planning decisions.

Improved Resource Allocation

By empowering ULBs to formulate their own plans, the 74th Amendment enables more efficient and effective resource allocation. ULBs can identify local needs and allocate resources accordingly, rather than relying on top-down directives. The SFCs play a crucial role in ensuring adequate financial resources for ULBs.

Strengthened Local Governance

Decentralised planning strengthens local governance by enhancing the accountability and transparency of ULBs. When ULBs are responsible for planning and implementing their own plans, they are more accountable to their citizens. The increased transparency in the planning process also helps to build public trust.

Integrated Urban Development

The DPCs, though often underutilized, are intended to facilitate integrated urban development by consolidating plans from different ULBs within a district. This helps to avoid duplication of efforts and ensures that plans are aligned with broader regional development goals.

Challenges to Effective Decentralised Planning

  • Capacity Constraints: Many ULBs lack the technical expertise and administrative capacity to prepare and implement effective plans.
  • Financial Dependence: ULBs continue to be heavily reliant on state funding, limiting their autonomy and ability to implement their own plans.
  • Political Interference: Political interference in the planning process can undermine the effectiveness of decentralised planning.
  • Weak DPCs: The DPCs have often failed to function effectively due to lack of political will and coordination issues.
  • Lack of Citizen Awareness: Limited awareness among citizens about their rights and responsibilities in the planning process hinders effective participation.

Examples of Decentralised Planning Initiatives

Kerala’s People’s Planning Campaign (PPC): Launched in 1996, the PPC is a prime example of successful decentralised planning. It involved extensive participation of local communities in identifying development priorities and allocating resources. This led to significant improvements in infrastructure and social services.

Rajasthan’s Ward Sabha Model: Rajasthan has actively promoted the formation of Ward Sabhas, which are forums for citizens to discuss local issues and participate in planning decisions. This has helped to improve the responsiveness of ULBs to citizen needs.

Conclusion

The 74th Constitutional Amendment Act, 1992, was a watershed moment for urban governance in India, establishing a constitutional framework for decentralised planning. While the Act has undoubtedly empowered ULBs and fostered greater local participation, significant challenges remain in realizing its full potential. Addressing capacity constraints, ensuring financial autonomy, and strengthening the role of DPCs are crucial steps towards achieving truly effective decentralised planning and sustainable urban development. Continued reforms and a renewed commitment to the principles of local self-governance are essential for unlocking the benefits of decentralisation.

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

Decentralised Planning
A planning approach where decision-making power and responsibility are distributed to lower levels of government, such as local bodies, enabling them to formulate and implement plans based on local needs and priorities.
State Finance Commission (SFC)
A body constituted by the Governor of a state every five years to review the financial position of municipalities in the state and make recommendations regarding the principles that should govern the distribution of taxes, duties, tolls and fees between the state and the municipalities.

Key Statistics

As of 2021, India has 4,608 statutory towns and cities (Census of India, 2011, updated estimates). The effective implementation of the 74th Amendment across all these urban centers remains a significant challenge.

Source: Census of India, 2011 & Ministry of Housing and Urban Affairs

According to a 2019 report by the Ministry of Housing and Urban Affairs, only about 30% of ULBs in India have the financial capacity to meet their basic operational expenses without relying on state government grants. (Knowledge cutoff: 2023)

Source: Ministry of Housing and Urban Affairs, Report on the Status of Urban Finances, 2019

Examples

Pune Municipal Corporation’s Budgeting Process

The Pune Municipal Corporation (PMC) has adopted a participatory budgeting approach, allowing citizens to propose projects and vote on how a portion of the municipal budget should be allocated. This initiative has increased citizen engagement and improved the transparency of the budgeting process.

Frequently Asked Questions

What is the role of the State Election Commission in the context of the 74th Amendment?

The State Election Commission is responsible for conducting regular elections to ULBs, ensuring that they are free and fair. This is crucial for maintaining the legitimacy and accountability of these bodies.

Topics Covered

PolityEconomyLocal GovernanceConstitutional AmendmentsPlanning