Q. Consider the following statements regarding 74th Amendment Act of 1992:
1. The act provides for the constitution of Ward Committees in all municipalities with a population of 3 lakhs or more.
2. The maintenance of the accounts of the municipalities and other audit shall be done according to the guidelines of the state finance commission.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Exp) Option a is the correct answer.

74th Amendment Act of 1992 has added a new Part IX-A to the Constitution of India. This part is entitled as ‘The Municipalities’ and consists of provisions from Articles 243- P to 243-ZG.

Statement 1 is correct: 74th Amendment Act of 1992 provides for constitution of Ward Committees in all municipalities with a population of 3 lakhs or more.

Statement 2 is incorrect: The maintenance of the accounts of the municipalities and other audit shall be done in accordance with the provisions in the State law. The State Legislatures will be free to make appropriate provisions in this regard depending upon the local needs and institutional framework available for this purpose

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