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Overview of the 74th Amendment Act

The document discusses urban local governance in India, specifically the 74th Constitutional Amendment which provided constitutional status to urban local bodies. Some key points: - The amendment aimed to decentralize power and make urban governance more responsive to local needs. It established institutional mechanisms for decentralization. - It mandated the formation of municipal corporations, councils, and committees to govern larger and smaller urban areas. It reserved seats for Scheduled Castes, Scheduled Tribes, and women. - The amendment specified important functions of urban local bodies like taxation, service provision, and economic development planning. It aimed to empower weaker sections of society and increase participation in urban governance.
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0% found this document useful (0 votes)
900 views6 pages

Overview of the 74th Amendment Act

The document discusses urban local governance in India, specifically the 74th Constitutional Amendment which provided constitutional status to urban local bodies. Some key points: - The amendment aimed to decentralize power and make urban governance more responsive to local needs. It established institutional mechanisms for decentralization. - It mandated the formation of municipal corporations, councils, and committees to govern larger and smaller urban areas. It reserved seats for Scheduled Castes, Scheduled Tribes, and women. - The amendment specified important functions of urban local bodies like taxation, service provision, and economic development planning. It aimed to empower weaker sections of society and increase participation in urban governance.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

INTRODUCTION

Urban Local government implies the governance of an urban area by the people through their elected
representatives. Urban governance refers to how government and stakeholders decide to plan, finance
and manage urban areas. It involves a continuous process of negotiation and contestation over the
allocation of social and material resources and political power.

Local governance is imp. As Managing cities and urban growth is one of the defining challenges of the
twenty-first century. If managed well, cities can act as engines of growth and provide inhabitants with
better job opportunities and other necessities. Further, cities can contribute to national growth through
increased revenue generation and political stability, as well as playing a role in post-conflict
reconciliation.

Decentralization of responsibilities to local governments has been identified as a means of rebalancing


relations between cities and national government, making urban government more responsive to local
contexts and actors. That’s why subject of local self government was allotted to state governments.

The 74th constitutional amendment gave recognition to LSG in India.

CONSTITUTIONAL STATUS

The very first attempt in the process to constitutionalise municipalities was made by Former PM Rajiv
Gandhi through 65th constitutional amendment bill (Nagar Palika Bill) in 1989.
Later in The 74th Amendment bill was introduced in the Lok Sabha which was eventually passed
by both houses in December,1992.

It got assent from the President of India in April, 1993.


It came into force on 23 April 1993 which is celebrated as the National Panchayati Raj Day
every year.

74TH CONSTITUTIONAL AMENDMENT

74th Constitutional Amendment Act, 1992 provided constitutional status to local urban bodies. This act
added a new part IX-A to the Constitution entitled as ‘The Municipalities’.

This amendment was considered as the pathbreaking amendment because it aimed at the creation
of local govt. which would ultimately had bridge the gap between government and governed.

The main aim of this act is to:


1. to set up a institutional mechanism to facilitate decentralization
2. demarcate role of ULBs and specify their functions
3. specify areas deemed as urban to include urbanizing areas.
4. ensure representation of deprived section of society,i.e. women, SC/ST

COMPOSITION
The Municipal bodies are constituted of persons chosen by direct election from the territorial
constituencies (known as wards) in the municipal [Link], the Legislature of a State may, by law,
provide for the representation in a municipal body of persons having special knowledge or experience of
municipal administration, the members of Rajya Sabha, Lok Sabha and the members of Legislative
Council and Legislative Assembly of the State, representing constituencies, which comprise wholly or
partly the Municipal Area. The state legislature may also provide the manner of the election of the
Chairpersons of a municipality.
Empowerment of weaker sections of society and women by reserving seats for such groups is one of the
important constitutional provisions of the Constitutional Amendment. Thus, offices of chairperson are
also reserved for SC/ST and women.

Some of the other main provisions of this act can be grouped under two categories–compulsory and
voluntary. Some of the compulsory provisions which are binding on all States are:

Main Provisions
1. Constitution of Nagar panchayats, municipal councils and municipal corporations in transitional areas
(areas in transition from a rural area to urban area), smaller urban areas and larger urban areas
respectively;
2. Reservation of seats in urban local bodies for Scheduled Castes / Scheduled Tribes roughly in
proportion to their population;
3. Reservation of seats for women up to one-third seats; constitution of State Election Commission in
order conduct elections to the urban local self- governing bodies;
5. Formation of State Finance Commission to look into the financial affairs of the local urban self
governing bodies;
6. Tenure of urban local self-governing bodies to be fixed at five years and in case of earlier dissolution
fresh elections are to be held within six months;

Some of the voluntary provisions which are not binding, but are expected to be observed by the States
are:
1. Giving representation to members of the Union and State Legislatures in these bodies;
2. Providing reservation for backward classes;
3. Giving financial powers in relation to taxes, duties, tolls and fees etc;
4. Making the municipal bodies autonomous and devolution of powers to these bodies to perform some
or all of the functions enumerated in the Twelfth Schedule added to the Constitution through this Act
and/or to prepare plans for economic development.

These are some of the imp. constitutional provisions of this act with their respective articles.

CLASSIFICATION

There are eight types of urban governments in India. 1. Municipal corporation, municipalities, notified
area committee, town area committee, cantonment board, township, port trust and special purpose
agency

1. Municipal Corporation: Municipal corporations are created for the administration of big cities like
Delhi, Mumbai, Hyderabad and others. A Municipal Corporation has three authorities namely, the
council (legislative wing of the corporation), the standing committee (to facilitate the working of the
council) and the commissioner (chief executive authority of the corporation).The council consist of
councillors directly elected by people and is headed by a Mayor while the Commissioner is appointed by
state government and is generally an IAS officer.

2. Municipality: The municipalities are established for the administration of towns and smaller cities.
They are known by various other names like municipal council, municipal committee, municipal board, b
city municipality and others. In composition they are quite similar to municipal corporations except that
head of council is called President /chairman and in place of commissioner they have a chief executive
officer/chief municipal officer.

3. Notified Area Committee: A notified area committee is created for the administration of two types of
areas- a fast developing town due to industrialisation, and a town which does not yet fulfill all the
conditions necessary for the constitution of a municipality, but which otherwise is considered important
by the state government. It is called so because it is created by a notification and unlike the municipality
it is an entirely nominated body, i.e. all members, including the Chairman, are nominated by the state
government.

4. Town Area Committee: It is set up by a separate act of state legislature for the administration of a
small town. It is a semi-municipal authority entrusted with limited number of civic functions. It may be
wholly elected or wholly nominated or partly elected and partly nominated as provided by state
government.

5. Cantonment Board: It is established for municipal administration for civilian population in the
cantonment areas (where military forces and troops are permanently stationed), in accordance to the
Cantonment Act, 2006 by central government and works under Defence ministry of central government.
It is partly elected and partly nominated body having the Military officer commanding the station as its
ex-officio President. Vice president is elected 9 amongst by the elected members of board. The
executive officer of the cantonment board is appointed by the President of India.,

6. Township: It is established by large public enterprises to provide civic amenities to its staff and
workers, who live in the housing colonies built near the plant. It is not an elected body and all members,
including the town administrator, is appointed by the enterprise itself.

7. Port Trust: The port trusts are established in the port areas like Mumbai, Kolkata, Chennai and so on
for two purposes: (a) to manage and protect the ports; (b) to provide civic amenities. It is created by an
Act of Parliament and it consists of both elected and nominated members.

8. Special Purpose Agency: The states have set up certain agencies to undertake designated activities or
specific functions that legitimately belong to the domain of municipal corporations, municipalities or
other local urban governments. In other words, these are function based, not area based. They are
known as ‘single purpose’, or ‘special purpose’ or ‘functional local bodies’ like town improvement trust,
housing boards, pollution control boars etc. They are established as statutory bodies by an act of state
legislature or as departments by an executive resolution.
Here is the administrative structure of India which showcase the decentralization process in india

Which places GOI at the apex level followed by state govt. and other divisions then districts are divided
as per the rural local governments followed by block and villages and ULG followed by municipalities,
municipal corporation and city councils there are wards respectively.

FUNCTIONS

It is a common practice to divide the organisation of a corporation or a municipality into two parts:

(a) deliberative and (b) executive part


The corporation, council or municipal board or council consisting of the elected representatives of
the people constitutes the deliberative part. It acts like a legislature. It discusses and debates on
general municipal policies and performance, passes the budget of the urban local body, frames
broad policies relating to taxation etc.
The executive part of municipal administration is looked after by the municipal officers and other
permanent employees. In the corporations, the Municipal Commissioner is the executive head, and
all other departmental officers like engineers, finance officers, health officers etc. function under
his/her control and supervision.

Municipal functions are generally classified into discretionary types and obligatory types.

The discretionary functions are those that a municipal body may take up if funds permit. These are
given less priority. Some of the discretionary functions are construction and maintenance of rescue
homes and orphanages, housing for low income groups, organising public receptions, provision of
treatment facilities, etc.
The obligatory (compulsory) functions are those that the municipal body must perform. In this
category fall such functions mentioned in the 12th schedule.

Article 243 W of the Indian constitution deals with the power, authority and responsibilities of
municipalities which clearly lays out the functions of municipality including the list of functions
enumerated in the 12th schedule.

Now I would like to invite ankita to highlight the merits n demerits of urban local govt. in india

Common questions

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The administrative structure reflects decentralization by positioning municipal corporations, councils, and city councils below the state government, allowing direct elected representation at the local level. The distinction between deliberative parts (elected representatives) and executive parts (appointed officials) in municipalities exemplifies power-sharing, allowing local governments to pass budgets, debate policies, and oversee executive actions .

Municipal corporations manage large cities, municipalities handle smaller urban areas, and notified area committees govern emerging towns without full municipal status. Town area committees administer small towns, while cantonment boards manage civilian areas in military zones. Townships, port trusts, and special purpose agencies have specific roles ranging from providing civic amenities in industrial zones to managing ports and executing specialized functions .

The 74th Constitutional Amendment ensures representation for weaker sections of society by reserving seats for Scheduled Castes and Scheduled Tribes in proportion to their population in urban local bodies. Additionally, it mandates the reservation of seats for women up to one-third of the total seats. The Act also reserves offices of chairpersons for SC/ST categories and women .

The main objectives of the 74th Constitutional Amendment are to facilitate institutional decentralization, demarcate the roles and functions of Urban Local Bodies (ULBs), identify urbanizing areas for development, and ensure representation of deprived sections of society, including women and SC/ST communities .

Challenges include potential lack of accountability and responsiveness to resident needs, as appointed members may not fully represent local interests. Decision-making could favor government priorities over citizen needs, hindering public engagement and satisfaction with governance outcomes. Reliance on nominations might limit the integration of diverse viewpoints and innovative local solutions .

The balance is shown as obligatory functions, which cities must perform, are enshrined in the 12th schedule of the Constitution, including essential services and urban planning. Discretionary functions, like managing orphanages and housing projects, are adopted based on available resources. This duality allows municipalities to focus on both necessary and supplementary roles to enhance urban living conditions .

The urban governance framework addresses financial management by forming State Finance Commissions to oversee the financial affairs of urban local bodies. Provisions allow municipal bodies to have financial powers related to taxes and duties, enhancing their capacity to raise and manage funds for local needs. These financial provisions ensure resource allocation aligns with local governance objectives .

Mandatory provisions, such as the formation of different types of urban bodies and reservation of seats for SC/ST and women, ensure uniformity across states, while voluntary provisions, like giving financial powers and autonomous status to municipal bodies, allow flexibility for states to adapt governance to local needs. This creates a balance between standardized governance requirements and context-specific administration .

Urban local governance can enhance political stability by fostering decentralized decision-making, which ensures government responsiveness to local issues and reduces central power concentration. This inclusivity promotes citizen trust and participation, crucial for stability. In post-conflict situations, empowered local bodies can act as mediators by addressing grievances at a grassroots level, facilitating reconciliation and social integration through local representation and resource allocation .

Decentralization through local urban governance contributes to national growth by making urban government more responsive to local contexts, enhancing revenue generation, fostering political stability, and facilitating post-conflict reconciliation. Well-managed cities, as engines of growth, offer better job opportunities and necessary amenities, which further drive economic development .

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