Paper I · Indian Government and Politics

Municipal Government

Syllabus · Paper I-B · 5 — Grassroots Democracy : Panchayati Raj and Municipal Government; Significance of 73rd and 74th Amendments; Grassroot movements.

The 74th Amendment, 1992 — Part IX-A (Urban)

The 74th CAA constitutionalised urban local government — Part IX-A, in force 1 June 1993, Articles 243P–243ZG + Twelfth Schedule (18 functions). Spur: rapid urbanisation; the Charles Correa-chaired National Commission on Urbanisation (1988).

Three municipality types

  • Municipal Corporation — larger urban area
  • Municipal Council — smaller urban area
  • Nagar Panchayat — transitional area

Twelfth Schedule (18 fns)

  • urban planning
  • water supply
  • sanitation
  • fire services
  • land-use regulation
  • public health
  • solid waste
  • slum improvement

Core provisions

  • direct ward elections; nominated experts (by law)
  • reservation: SC/ST & not less than 1/3 women + chairpersons
  • 5-year tenure; SEC; State Finance Commission
  • Article 243W — economic development & social justice
  • Ward Committees (larger cities)
  • DPC (243ZD) · Metropolitan Planning Cmte (243ZE)

Why ULBs stay weak — the “unfulfilled dream”

Fault line Detail
Incomplete functional devolution 12th-Schedule functions not fully devolved; state agencies implement key services
Financial weakness octroi abolished; weak property tax; ignored SFCs — Isher Judge Ahluwalia
Weak mayoral system ceremonial mayor; Municipal Commissioner holds real power; short tenures
Parastatal dominance BDA overshadows BBMP; DDA + MCD fragment Delhi governance
Special Purpose Vehicles Smart Cities SPVs bypass elected councils
Delayed elections e.g. Maharashtra corporations left without elected bodies for a period

“Democratic decentralisation is barely alive… local governments remain hamstrung and ineffective; mere agents to do the bidding of higher-level governments.”

T. R. Raghunandan

“unwillingness of the system to devolve responsibility and funding to the city level”

Isher Judge Ahluwalia

Reforms: 3Fs + subsidiarity; property-tax reform, GIS assessment, municipal bonds (Pune’s INR 200 crore water-supply bond), user charges; JNNURM (65 cities); convert 3,784 Census Towns to statutory ULBs; municipal ombudsman, public hearings, social audit. China paradox: India is democratic yet municipalities lack power; the Mayor of Shanghai holds status comparable to the Mayor of London.

UPSC 2023 · 20mMajor provisions of the 74th CAA; does it remain an ‘unfulfilled dream’?

District Planning Committees & Integrated Planning

Composition (Art. 243ZD)

  • elected representatives from Panchayats & Municipalities
  • share based on rural–urban population of the district
  • chairperson elected/appointed per state law

Functions

  • consolidate Panchayat + municipal plans
  • prepare draft district development plan
  • integrate rural & urban priorities; spatial + sectoral
  • prioritise projects, allocate resources, review

Problems: states delay constitution; DPCs lack real planning power; district administration dominates; departmental schemes run separately; peri-urban growth complicates planning. Metropolitan Planning Committees (Art. 243ZE) face similar problems.