Model Answer
0 min readIntroduction
The 74th Constitutional Amendment Act, enacted in 1992, marked a watershed moment in the history of urban governance in India. Prior to this, urban local bodies (ULBs) were largely creatures of state legislation, lacking constitutional recognition and facing issues of inadequate funding, ill-defined functions, and limited autonomy. The Act aimed to address these deficiencies by providing constitutional status to ULBs, outlining their powers, functions, and finances, and mandating regular elections. However, despite its progressive intent, the extent to which the 74th Amendment has truly empowered ULBs and fostered effective urban governance remains a subject of debate. This answer will discuss the major provisions of the Act and critically assess whether it remains an ‘unfulfilled dream’.
Major Provisions of the 74th Constitutional Amendment Act
The 74th Amendment Act inserted Part IX-A into the Constitution, titled “The Municipalities”. Its key provisions include:
- Constitutional Recognition: Granted constitutional status to municipalities, ensuring their existence as self-governing institutions.
- Classification of Municipalities: Categorized municipalities into three types based on population and urban characteristics: Nagar Panchayat (for areas in transition from rural to urban), Municipal Council (for smaller urban areas), and Municipal Corporation (for larger urban areas).
- Composition of Municipalities: Provided for the constitution of wards and the election of members directly by the people.
- Reservation of Seats: Mandated reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women (at least one-third of the seats). This provision aimed to enhance the representation of marginalized groups in urban governance.
- Duration of Municipalities: Fixed a five-year term for municipalities, with elections to be held before the expiry of the term.
- State Election Commission: Established a State Election Commission to conduct elections to municipalities.
- State Finance Commission: Constituted a State Finance Commission every five years to review the financial position of municipalities and make recommendations regarding the distribution of taxes, duties, tolls, and fees between the state and the municipalities.
- Powers, Authority, and Responsibilities: Empowered state legislatures to endow municipalities with powers and authority necessary for effective functioning, including the preparation of plans for economic development and social justice. A list of 18 functions were outlined in the Twelfth Schedule of the Constitution, which municipalities could perform.
Is the 74th Amendment an Unfulfilled Dream?
While the 74th Amendment has undoubtedly brought about positive changes, its full potential remains largely unrealized. Several factors contribute to this assessment:
Financial Constraints
Despite the provision for State Finance Commissions, ULBs continue to be heavily reliant on state governments for funding. Their own revenue sources are limited, and the devolution of funds from state governments is often inadequate. This financial dependence hinders their ability to effectively implement development projects and provide essential services. According to a 2019 report by the Ministry of Housing and Urban Affairs, own-source revenue of ULBs constitutes only around 30% of their total revenue.
Lack of Functional Devolution
While the Act empowers state legislatures to devolve functions to municipalities, many states have been reluctant to do so. Essential functions like urban planning, water supply, sanitation, and solid waste management often remain under the control of state-level departments. This limits the autonomy of ULBs and their ability to respond to local needs.
Capacity Building Challenges
Many ULBs lack the necessary technical and administrative capacity to effectively discharge their functions. There is a shortage of trained personnel, and municipal staff often lack the skills required for modern urban governance. Investment in capacity building initiatives has been insufficient.
Political Interference
ULBs often face political interference from state governments and local politicians. This can manifest in the form of arbitrary transfers of municipal staff, delays in approving budgets, and undue influence in decision-making. Such interference undermines the autonomy and accountability of ULBs.
Implementation Gaps & Variations Across States
The implementation of the 74th Amendment has varied significantly across states. Some states have been more proactive in devolving powers and funds to ULBs, while others have been slow to adopt the provisions of the Act. This has led to uneven levels of urban governance across the country.
| Aspect | Progress | Challenges |
|---|---|---|
| Political Representation | Increased representation of SCs, STs, and women in ULBs. | Representation doesn't always translate to effective participation or decision-making power. |
| Financial Devolution | Establishment of State Finance Commissions. | Inadequate devolution of funds; ULBs remain financially dependent on state governments. |
| Functional Devolution | Some states have devolved certain functions. | Many essential functions remain with state-level departments; limited autonomy for ULBs. |
| Capacity Building | Some initiatives for training municipal staff. | Insufficient investment in capacity building; shortage of skilled personnel. |
Conclusion
The 74th Constitutional Amendment Act was a landmark legislation that laid the foundation for a more democratic and accountable urban governance system in India. While it has achieved some success in terms of political representation and institutionalization of ULBs, its full potential remains unrealized due to persistent challenges related to financial constraints, lack of functional devolution, capacity building gaps, and political interference. To truly fulfill the ‘dream’ of the 74th Amendment, a concerted effort is needed to strengthen the financial position of ULBs, empower them with greater autonomy, invest in capacity building, and ensure that they are free from undue political interference. A renewed focus on the principles of subsidiarity and decentralization is crucial for effective urban governance in the 21st century.
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.