Examine how well the 73rd and 74th Constitutional Amendments have empowered local governments (Urban Local Bodies and Panchayati Raj Institutions) and assess the difficulties encountered in putting them into practice in the various states.
Urban Local Bodies (ULBs) are institutions constituted for local self-government in urban areas through their elected representatives. Rapid speed of urbanisation in India poses the challenge of improving the lives of urban residents, which needs to be tackled by reforming urban governance and strenRead more
Urban Local Bodies (ULBs) are institutions constituted for local self-government in urban areas through their elected representatives. Rapid speed of urbanisation in India poses the challenge of improving the lives of urban residents, which needs to be tackled by reforming urban governance and strengthening urban local bodies. Over the last few years, several measures have been taken by the Centre and the state governments in capacity building and overhauling of urban local bodies. These include the following:
Reforms undertaken by the Central Government:
- Enactment of the 74th Constitutional Amendment Act, 1992, to Constitutionally recognize urban local bodies.
- The Ministry of Housing and Urban Affairs has incorporated a Comprehensive Capacity Building Programme (CCBP) to support ULBs under the AMRUT scheme.
- The Municipal Performance Index (MPI) has been released to assess and analyze the performance of Indian municipalities on various parameters from provision of basic public services to more complex domains like urban planning.
- Preparation of a National Municipal Accounting Manual to enhance the capacities of ULBs in municipal accounting. This has led to increased transparency regarding utilization of public funds.
Reforms undertaken by the state governments:
- Rationalization of stamp duty to establish an efficient real estate market with limited barriers on transfer of property.
- Reform in rent control laws to balance the rights and obligations of landlords and tenants and to encourage construction and development of housing stocks.
- Encouraging urban local bodies to make use of municipal bonds to raise funds. Since 1998, local bodies in cities like Nasik, Nagpur, Ludhiana, and Madurai have accessed the capital markets through municipal bonds.
- Repeal of the Urban Land Ceilings Regulation Act, 1976, by states such as Maharashtra for increasing the supply of land in the market and establishing an effective land market.
More steps like implementation of e-governance for transparent administration and property tax collaboration with GIS have been taken. However, the urban local bodies are still fraught with structural and institutional challenges which impede their effective functioning, such as:
- Financial scarcity and corruption: The urban local bodies are facing acute scarcity of finance, as the extent of financial devolution is not commensurate with their responsibilities. Further, some urban local bodies do not collect enough taxes and do not realize the full potential of property tax. Apart from that corruption, favoritism and nepotism are making them inefficient.
- State’s control in urban planning: In most cases, urban planning is done at the state government level and ULBs have little role in it. Also, excessive control of the states over ULBs restricts the functioning of the latter.
- Multiplicity of agencies: Multiplicity of agencies like Jal boards, electricity boards, and other special purpose vehicles engaged in urban administration invariably leads to problems of coordination.
- Inadequately trained personnel: The government functionaries, especially in smaller ULBs, lack exposure to cross learning and to best practices in innovative technologies in areas such as urban planning, citizen participation, municipal service delivery etc.
- Irregular elections: Elections in some ULBs have been postponed for more than six months due to reorganization of ward boundaries, extension of limits, etc. Further, many states do not constitute the State Election Commission at the prescribed time interval.
To address the above challenges, steps like strengthening of Administrative Training Institutes (ATIs) to support the training needs of ULBs, increasing financial devolution and resource mobilization avenues for ULBs, proactive coordination among the Centre, state, and ULBs regarding urban planning, etc. are the need of the hour.
See less
Effectiveness of the 73rd and 74th Constitutional Amendments in Empowering Local Governments The 73rd and 74th Constitutional Amendments of 1992 were landmark reforms aimed at empowering local governments in India through the establishment of Panchayati Raj Institutions (PRIs) and Urban Local BodiesRead more
Effectiveness of the 73rd and 74th Constitutional Amendments in Empowering Local Governments
The 73rd and 74th Constitutional Amendments of 1992 were landmark reforms aimed at empowering local governments in India through the establishment of Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). These amendments were designed to decentralize governance, promote local self-government, and enhance participatory democracy. This analysis examines the effectiveness of these amendments and evaluates the challenges faced in their implementation across different states.
Objectives and Key Provisions:
73rd Constitutional Amendment (1992):
Objective: To empower rural local governance through the establishment of Panchayati Raj Institutions (PRIs).
Key Provisions:
Three-tier System: Establishment of a three-tier system comprising Gram Panchayats (village level), Panchayat Samitis (block level), and Zila Parishads (district level).
Elections and Reservations: Mandates direct elections for Panchayats and reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women (33% reservation for women).
74th Constitutional Amendment (1992):
Objective: To strengthen urban local governance through the establishment of Urban Local Bodies (ULBs).
Key Provisions:
Two-tier System: Establishment of Municipalities in smaller urban areas and Municipal Corporations in larger urban areas.
Elections and Reservations: Mandates direct elections for municipal bodies and reservation of seats for SCs, STs, and women.
Effectiveness of the Amendments:
Empowerment of Local Governments:
Decentralized Governance: The amendments have led to the creation of a more decentralized governance structure, allowing local bodies to address regional and local issues more effectively.
Recent Examples:
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): PRIs play a critical role in implementing MGNREGS, leading to better management of rural employment projects.
Smart Cities Mission: ULBs are central to implementing the Smart Cities Mission, which aims to improve urban infrastructure and services.
Increased Local Participation:
Enhanced Citizen Engagement: Local elections and participatory processes have increased public involvement in governance.
Recent Examples:
Panchayats in Kerala: Kerala’s “People’s Plan Campaign” has effectively utilized PRIs for participatory planning and local development, leading to successful community-driven projects.
Capacity Building and Resource Allocation:
Funds and Functionaries: The allocation of funds and responsibilities to local bodies has improved the capacity of PRIs and ULBs to deliver services.
Recent Examples:
Devolution of Funds: The 14th Finance Commission increased the share of funds allocated to local bodies, enhancing their financial resources for development projects.
Challenges in Implementation:
Capacity and Resource Constraints:
Limited Financial Resources: Many local bodies struggle with inadequate financial resources and limited capacity to manage funds effectively.
Recent Examples:
Underfunded ULBs: Several ULBs, particularly in smaller towns and cities, face challenges in managing urban infrastructure due to limited financial resources.
Political and Administrative Issues:
Political Interference: Local governance often faces political interference, which can undermine the autonomy and effectiveness of PRIs and ULBs.
Recent Examples:
Kerala’s Experience: Despite successful models, local bodies in Kerala have faced political challenges in maintaining their autonomy and effectiveness.
Implementation Disparities Across States:
Variability in Adoption: The effectiveness of the amendments varies significantly across states due to differences in political will, administrative capacity, and implementation practices.
Recent Examples:
Uttar Pradesh: In Uttar Pradesh, there have been challenges related to the effective functioning of Panchayats due to bureaucratic delays and political interference.
Bihar: In Bihar, despite the formal structure, the actual empowerment and functioning of local bodies remain limited due to resource constraints and administrative hurdles.
Accountability and Transparency Issues:
Lack of Oversight: Ensuring transparency and accountability in the functioning of PRIs and ULBs remains a challenge, leading to issues of corruption and mismanagement.
Recent Examples:
Audit Reports: Reports from the Comptroller and Auditor General (CAG) have highlighted issues of financial mismanagement and lack of accountability in some local bodies.
Recent Developments and Innovations:
Digital Initiatives: The integration of digital tools and platforms has improved the functioning and transparency of local governance.
Recent Examples:
e-Gramswaraj: An initiative by the Ministry of Panchayati Raj to digitize Panchayat records and enhance transparency in rural governance.
Municipal e-Governance Systems: Many ULBs have adopted digital platforms for better service delivery and citizen engagement.
Capacity Building Programs: Various state and central government initiatives aim to enhance the skills and capabilities of local functionaries.
Recent Examples:
Training Programs: Initiatives like the Capacity Building of Panchayats (CBP) program aim to improve the skills of elected representatives and officials.
Conclusion
The 73rd and 74th Constitutional Amendments have significantly contributed to the empowerment of local governments by decentralizing governance and enhancing local participation. However, challenges such as financial constraints, political interference, and disparities in implementation across states hinder the full realization of their potential. Addressing these challenges through improved resource allocation, capacity building, and innovative practices can enhance the effectiveness of Panchayati Raj Institutions and Urban Local Bodies in achieving better governance and development outcomes.
See less