India’s Urban Crisis Deepens As States Choke City Level Governance

Indian cities face chronic traffic jams, pollution, waterlogging, and broken roads, often attributed to poor urban planning and the failure of Urban Local Bodies (ULBs).

CAG Findings Related to ULB’s

• Audit Coverage: In 2024, the CAG audited Urban Local Bodies (ULBs) across 18 states.
• Key Finding: ULBs lack the necessary powers to function effectively, undermining urban governance.

Empowering Urban Local Bodies- Constitutional Provisions

• 74th Amendment (1992): This amendment granted ULBs constitutional recognition, limiting arbitrary control by State Governments.
• 12th Schedule: It lists 18 functions—including urban planning, roads, water supply, health, waste management, and slum improvement—that must be transferred to ULBs.

Failure of the Three Fs Related to ULB

• Functions:
  • Limited Transfer: States have transferred only about 4 of the 18 functions to ULBs.
  • Para-statal Control: Planning is often handled by bodies like the DDA or Delhi Jal Board, bypassing ULB authority.
• Functionaries:
  • Recruitment Power: ULBs cannot independently recruit engineers, planners, or sanitation staff.
  • Vacancies: Many posts remain unfilled; for instance, Shimla Municipal Corporation requires 720 personnel.
• Finance:
  • Dependency on States: ULBs rely entirely on State Governments for funding.
  • Revenue Collection Issues: Local taxes, such as property tax, are poorly collected due to political interference or capacity constraints.
  • State Finance Commissions (SFCs): Often ignored or not constituted, limiting financial autonomy.

Systemic Challenges Faced by ULB’s

• Electoral Delays: State Election Commissions frequently delay ULB elections, transferring power to unelected bureaucrats.
• Failure of Planning Committees:
• • District Planning Committee (DPC, Art. 243 ZD): Only 10 states have created it; only 3 implement plans effectively.
  • Metropolitan Planning Committee (MPC, Art. 243 ZE): Required in cities with over 10 lakh population; only 3 states have created it.

Way Forward

• Transfer Functions: States must transfer all 18 functions listed in the 12th Schedule to ULBs.
• Strengthen SEC: State Election Commissions should be made fully independent to prevent delays in ULB elections.
• Empower Planning Bodies: District Planning Committees (DPCs) and Metropolitan Planning Committees (MPCs) must be granted statutory authority for effective regional planning.
• Financial Autonomy: Independent State Finance Commissions (SFCs) should be constituted regularly, and their recommendations must be implemented mandatorily.
• Recruitment Power: ULBs must be empowered to recruit engineers, planners, sanitation staff, and other personnel independently.

Conclusion

The urban crisis is primarily political, not technical. State Governments are responsible for failing to implement the 74th Amendment in its true spirit, undermining the effectiveness of local governance.