Relevance: GS-2: Functions and Responsibilities of the Union and the States, Issues and Challenges Pertaining to the Federal Structure, Devolution of Powers and Finances up to Local Levels and Challenges Therein

Key Phrases: Constitutional Status, District Planning Committees, Metropolitan Planning Committee, Grants-in-Aid, Responsive Governance, Lord Ripon’s resolution.

Why in News?

• Supreme Court recently observed that 23,263 local bodies in Madhya Pradesh are functioning without the elected representatives for last two years.
• The bench passed an interim order on the writ petition assailing the validity of Madhya Pradesh Municipal Act, 1956, Madhya Pradesh Panchayat Raj Avam Gram Swaraj Adhiniyam, 1993 and Madhya Pradesh Municipalities Act, 1961 as being arbitrary and usurping the powers and independence of the State Election Commission.
• The bench recorded that the elections have not been held assumedly for the reason that the State has still not been able to complete the triple test given in the decision of this Court in Vikas Kishanrao Gawali Vs. State of Maharashtra.
• As a result of which, reservation for Other Backward Classes (OBC) category cannot be provisioned by the State Election Commission.

74th Constitutional Amendment:

• The 74th Constitutional Amendment granted Constitutional status to local bodies and made them mandatory and laid down the procedure for their constitution.
• It provided reservations in Municipalities at par with the PRIs.
• It ensured timely elections every five years, and in case of supersession, elections to be held before the expiration of six months from the date of dissolution, and a proper report to be submitted by the state government for dissolving/superseding before the state legislature.
• State Finance Commission was also set up to review the financial position of the Municipalities and make recommendations regarding the distribution of taxes between the states and municipalities. It is also expected to look into the criteria for grants-in-aid and suggest measures needed to improve the financial position of the Municipalities.
• State Election Commission was setup to ensure timely and fair conduct of elections.
• Setting up of District Planning Committees for Municipal Councils and Nagar Panchayats to prepare draft development plan for the district as a whole and submit their draft development plan to the state government for review and inclusion in the state plan.
• Setting up of Metropolitan Planning Committee for Metropolis which would submit its draft development plan to the state government for review and inclusion in the state plan.

Various issues related to urban local bodies in India:

1. Financial condition: The first and most serious problem facing the urban local bodies is the acute scarcity of finance. City municipalities do not collect enough taxes. The Economic Survey of 2020 pointed out municipalities do not realize the full potential of property tax.
2. Excessive State Control: There is also strict control exercised by the state government over urban bodies. This proves to be more of a curse than a boon, because, instead of providing guidance and support through the control mechanism, the control turns out to be negative, restricting the functioning of these bodies.
3. Irregular Elections: Elections to urban bodies have suffered constant postponement for indefinite lengths of time. In some states, elections to urban local bodies have not been held for years, defeating the goal of decentralized governance.
4. Poor governance: The largest reason for the poor condition of India’s cities is the failure of municipal governance. There is a lack of planning and governance at the urban local body level.
5. Lack of management capacity: Indian municipalities do not have the management capacity to either plan economic activity or execute it. The system of recruitment fails to bring in the best men. Several vacancies are not filled for years and transfers are effected at the free will of the senior bureaucrats and the government.
6. Corruption: In these bodies corruption, favoritism and nepotism are rampant. In the case of most of the bodies, the state government is empowered to take disciplinary action and the urban body has very little control over its personnel.
7. Urban planning: Urban planning is done at the state government level and municipalities have little or no role in it. There is no direct responsibility for the consequences of planning as long as the municipality completes the plan. Poor planning, poor accountability, and poor governance have led to disasters.
8. Lack of coordination: Poor coordination among centre, state, and various departments at the local level lead to poor implementation of urban policies. Inability to coordinate leads to administrative inefficiency and thus poor urban governance.

Measures to strengthen urban local bodies in India:

1. Greater autonomy: The urban local bodies should be given greater autonomy. India needs to follow a devolved model that empowers urban local bodies. Municipalities should be more autonomous in their functioning so that they can deliver quality service.
2. Governance Reforms: Governance reform are needed as catalyst for change. The Government may consider the adoption of a common categorization of urban bodies across the country so as to assist a systematic planning process and devolution of funds. All areas having a population of more than 10 lakhs should be defined as metropolitan areas.
3. Timely elections and recruitment: For strengthening ULBs, a minimum level of staffing should be provided in metropolitan areas. Elections to ULBs should not be, generally, delayed beyond six months.
4. Encouraging public-private partnership: Successful PPP programs should be formulated at both state and city levels to fund the city development. The role of the state should be to create an enabling environment with an aim to expand and deepen private sector investments in infrastructure.
5. Planning: Government needs to coordinate at various levels with regard to the implementation of various programmes. The urban local bodies should prioritize the development programmes. Any mega project envisaged needs to be developed taking into account the views of all the stakeholders.
6. Holistic approach: It is important to integrate various urban development and related programs at local, state, and national levels to develop sustainable city or metropolitan regions. Urban institutions should be strengthened and the roles of different organizations should be fixed.

Conclusion

• Urban local government institutions are constituted for the maintenance and planned development of urban areas.
• The objective is to ensure that suitable levels of infrastructure and services are available to the citizens.
• The Urban Local Bodies system in India should be strengthened as it captures local needs and ensures responsive governance.
• The implementation of the 74th Amendment Act of the Constitution should be done in an efficient manner such that the objectives of the Act will be achieved.

Sources: The Hindu  Economic-Times

Mains Question:

Q. Recently we have seen the trend of delay in urban local body elections in India. In this context discuss the issues related to urban local bodies and measures to strengthen urban local bodies.