Learn from Morbi: Fix local govt

Source– The post is based on the article “Learn from Morbi: Fix local govt” published in The Times of India on 3rd November 2022.

Syllabus: GS1- Urbanisation. GS2- Local bodies

Relevance– Urban governance

News- The article explains the issues related to urban civic bodies in asset creation and maintenance.

The broader goal of investigation of the Morbi incident should be to identify the issues faced by urban civic bodies.

What is the importance of asset creation in urban areas?

Thes enable a city to provide an economy of scale. Assets determine the economic potential and environmental sustainability of a city.

PM has himself  observed that vision of India@2047 as developed nation will be shaped by cities.

What are the issues related with urban asset creation and maintenance?

Fiscal health– Large parts of municipal budgets are spent on previous year dues. It leads to cost overrun.

Procurement process and enforcement– The  procurement process is weak.

There is a lack of transparency and people-centricity despite several supportive mechanisms like RTI.

There is a wide nexus between contractors and vested interests in the political economy.

Capacity of civic bodies– These bodies suffer from overlapping responsibility and multiplicity of agencies.

There is an acute shortage of staff. One CEO or engineer handles two or more civic bodies.

Training and feedback are either absent or irregular.

What is the way forward?

Improving fiscal health– State needs to initiate civic body reform regarding its own source funds. Property tax toolkit gives step-by-step directions for this.

Accounting exercise with ratio analysis, realistic budgeting with participatory resources and timely auditing is needed.

Following due process– Asset creation and maintenance should follow the rules, byelaws and regulation. It includes safety, environmental and energy audits as per building code, Model Municipal Law, 2003 and UDFPI guidelines, 1996.

Capacity building– There is a need to focus upon competency-based modules rather than routine conventional training. Exposure visit and roundtable seminars for all municipal functionaries including elected leaders is needed.