1. Introduction to Urban Local Government in India

  • Definition: Urban local government refers to the governance of urban areas by elected representatives, confined to a designated urban region.
  • Types of Urban Local Governments:
    • Eight types exist, including Municipal Corporations, Municipalities, Notified Area Committees, and others.

2. Evolution of Urban Local Bodies

  • Historical Milestones:
    • 1688: First Municipal Corporation in Madras.
    • 1726: Establishment of Bombay and Calcutta Corporations.
    • Key Resolutions and Acts: Lord Ripon’s 1882 resolution (hailed as the “Magna Carta” of local self-government) and subsequent British-era policies.

3. 74th Constitutional Amendment Act (1992)

  • Significance: Added Part IX-A to the Constitution, granting constitutional status to municipalities.
  • Key Features:
    • Types of Municipalities:
      • Nagar Panchayat (transitional areas), Municipal Council (small urban areas), and Municipal Corporation (large urban areas).
    • Composition: Directly elected members; provisions for special members with knowledge in administration.
    • Committees: Wards committees and other specialized committees for larger municipalities.
    • Reservation of Seats: Reserved seats for SCs, STs, and at least one-third for women.
    • Duration & Dissolution: 5-year term, with provisions for reconstitution.

4. Powers and Functions of Municipalities

  • State Legislature’s Role: Endows powers to municipalities for self-governance, including social justice and economic development.
  • Twelfth Schedule: Lists 18 functional items under municipalities, including urban planning, public health, slum improvement, and more.

5. Types of Urban Governments

  • Municipal Corporation:
    • Established for big cities and comprises a Council, Standing Committees, and Commissioner. The Mayor heads the Council.
  • Municipality:
    • Formed for towns and smaller cities; has a similar structure to corporations with a President instead of a Mayor.
  • Notified Area Committee:
    • For emerging towns; all members are nominated, with functions similar to municipalities.
  • Town Area Committee:
    • Semi-municipal authority for small towns, handling drainage, roads, and street lighting.
  • Cantonment Board:
    • Governed by the Defense Ministry, responsible for civilian areas in military zones.
  • Township:
    • Created by public enterprises to manage staff colonies with no elected members.
  • Port Trust and Special Purpose Agencies:
    • Manage port areas and special functions, such as urban development and water supply.

6. Municipal Personnel Systems

  • Types of Personnel Systems:
    • Separate Personnel System: Local bodies control their personnel.
    • Unified Personnel System: State controls municipal personnel, ensuring transferability.
    • Integrated Personnel System: No distinction between state and local civil service.

7. Municipal Revenue Sources

  • Tax Revenue: Includes property, entertainment, and water taxes.
  • Non-Tax Revenue: Fees, fines, and user charges (e.g., water and sanitation).
  • Grants and Devolution: Funds from central and state governments.
  • Loans: For capital expenditure, subject to state approval.

8. Committees for Planning

  • District Planning Committees: Consolidate plans from panchayats and municipalities at the district level.
  • Metropolitan Planning Committees: Oversee planning in metropolitan areas, coordinating spatial and resource planning.

9. Central Council of Local Government

  • Purpose and Structure: Advisory body for policy and cooperation between central and state governments.
  • Functions: Includes policy recommendations, legislative proposals, and financial assistance.

10. Reservation and Duration of Municipalities

  • Reservation of Seats:
    • Seats are reserved for Scheduled Castes (SCs), Scheduled Tribes (STs), and at least one-third of seats are reserved for women, including SC/ST women.
    • State legislatures may also reserve chairperson positions for SCs, STs, and women.
  • Duration of Municipalities:
    • Each municipality has a five-year term from its first meeting. If dissolved prematurely, re-election should occur within six months.
    • If less than six months remain in the term, no new election is required, and the reconstituted municipality serves only the remainder of the original term.

11. State Election Commission

  • Role: The State Election Commission oversees the preparation and conduct of municipal elections, ensuring the autonomy and impartiality of the election process.
  • Authority: It manages the entire electoral process, from maintaining electoral rolls to overseeing election conduct.

12. Finance Commission’s Role in Urban Local Bodies

  • Mandate: Reviews municipalities’ financial positions every five years.
  • Recommendations:
    • Determines the principles for sharing state-collected taxes with municipalities.
    • Proposes grants-in-aid from the state’s consolidated fund to municipalities.
    • Suggests measures to improve municipalities’ financial standing, focusing on sustainable revenue and budget allocation.

13. Municipal Finances and Revenue Sources

  • Types of Revenue:
    • Tax Revenue: Predominantly from property tax, which forms the major income source, along with taxes on entertainment, professional services, and advertisements.
    • Non-Tax Revenue: Includes rent from municipal properties, license fees, fines, user charges (for utilities like water), and income from investments.
    • Grants: Given by central and state governments for development projects, infrastructure, and urban reforms.
    • Devolution and Loans: State governments allocate funds based on the recommendations of the State Finance Commission. Municipal bodies can also raise loans with state approval.

14. Audit of Municipal Accounts

  • Audit Requirement: State legislatures establish regulations for maintaining and auditing municipal accounts.
  • Accountability: Ensures transparency in the use of public funds, essential for maintaining public trust and achieving efficient service delivery.

15. Exemptions and Applications

  • Union Territories and Scheduled Areas:
    • The President may adapt these urban governance provisions to Union Territories, while tribal and scheduled areas generally follow different administrative structures unless otherwise specified by Parliament.
  • Exempted Areas: Scheduled and tribal areas are exempt, alongside the Darjeeling Gorkha Hill Council’s area.

16. Bar on Judicial Intervention in Municipal Elections

  • Electoral Matters: Courts are barred from interfering in municipal electoral matters. Election disputes can only be addressed through election petitions as defined by state law.

17. Twelfth Schedule of the Constitution – Functional Items for Municipalities

  • Eighteen Areas of Responsibility: The Twelfth Schedule outlines the key functions that municipalities are responsible for, ensuring comprehensive urban development:
    • Urban Planning and Development: Involves town planning, regulation of land use, and planning for economic and social development.
    • Infrastructure and Services: Maintenance of roads, bridges, water supply, public health, sanitation, fire services, urban forestry, and environmental conservation.
    • Social Welfare: Including protection of vulnerable groups, slum improvement, poverty alleviation, and provision of urban amenities.
    • Public Utilities and Safety: Management of public amenities like street lighting, parks, burial grounds, and regulation of slaughterhouses.

18. Central Council of Local Government

  • Establishment and Role: Created in 1954 under Article 263 of the Constitution, this advisory body facilitates collaboration between the central and state governments on urban policy and development.
  • Functions: Recommends policies, proposes legislative changes, coordinates central-state efforts, reviews urban projects, and suggests financial support to urban bodies.

19. Municipal Personnel Training and Development

  • Training Institutes: Several national-level institutions provide specialized training to municipal personnel, including:
    • All-India Institute of Local Self-Government (Mumbai): Established in 1927, this private society focuses on practical training.
    • Regional Centers for Urban and Environmental Studies: Located in various cities and set up in 1968 following recommendations for municipal employee training.
    • National Institute of Urban Affairs (New Delhi): Established in 1976 for research and training in urban management.
  • Objective: Training ensures municipal staff are equipped with the skills needed for effective urban management and governance.

20. Challenges and Prospects for Urban Local Government

  • Financial Challenges: Many municipalities face financial constraints due to limited revenue sources and dependency on state grants.
  • Need for Capacity Building: There is a continuous need for training municipal staff to enhance their administrative efficiency.
  • Urbanization Pressure: Rapid urbanization increases the demand for efficient urban services, necessitating a robust municipal governance structure.