74th Constitutional Amendment Act

The 74th Constitutional Amendment Act, 1992, is a landmark piece of legislation in the context of urban governance in India. Prior to its enactment, Urban Local Bodies were operating without clear constitutional backing, leading to weak governance and inefficient delivery of urban services. This Amendment sought to empower urban local bodies by providing them with constitutional status, thereby ensuring that urban citizens’ voices are heard and represented effectively.

This article explores the key features, objectives, provisions, and impact of the 74th Constitutional Amendment, and provides a clear understanding of how it reshaped urban governance in India.

Historical Context and Background of 74th Constitutional Amendment Act

Before the 74th Amendment, urban local bodies were largely governed by state laws, and there was no uniform structure across the country. Although urban local governance was essential for the provision of services such as water, sanitation, waste management, and infrastructure, urban local bodies often lacked the necessary resources, powers, and autonomy. This led to inefficient service delivery, poor urban planning, and a disconnect between the government and urban residents.

The 74th Amendment was introduced to address these issues by providing a constitutional framework that would enable urban local bodies to function more effectively. The Amendment was built on the premise that “power” in a democracy must be vested in the people. By empowering local urban bodies, the Act aimed to ensure that citizens had a direct say in the management of their urban environments.

Objectives of the 74th Constitutional Amendment

The main objectives of the 74th Amendment were:

1. Empowerment of Urban Local Bodies: By providing constitutional status, the Act aimed to give urban local bodies the autonomy and authority they needed to function effectively. This would allow them to have a decisive role in urban planning and the delivery of municipal services.
   
2. Democratic Decentralisation: The Amendment sought to deepen democracy by ensuring regular elections to urban local bodies and establishing mechanisms for citizen participation in decision-making processes. It aimed to make urban governance more inclusive and responsive to the needs of urban populations.
   
3. Coordination of Planning: The Amendment facilitated coordinated planning across urban and rural areas through the establishment of planning committees at the district and metropolitan levels. This was intended to ensure that urban growth was planned in a way that was sustainable and inclusive.
   
4. Financial Empowerment: urban local bodies were granted the power to collect taxes, levy duties, and receive financial transfers from the state, thereby giving them the resources to fulfil their responsibilities.

Key Changes by 74th Constitutional Amendment Act

Constitutional Status of Urban Local Bodies

The Amendment inserted Part IX-A (Articles 243P to 243ZG) into the Constitution, specifically addressing the governance of urban areas. This provided a legal and institutional framework for urban local bodies, making them integral to India’s federal structure. The provisions laid down the structure, functions, and responsibilities of urban local bodies, ensuring they had the authority to manage and govern urban areas effectively.

Classification of Urban Local Bodies

The Amendment classifies urban local bodies into three categories, based on the size and population of the urban area:

• Nagar Panchayat: A transitional body for areas that are moving from rural to urban status. These bodies cater to small urban settlements and are responsible for basic governance and services.
  
• Municipal Council: For smaller urban towns or municipalities, these bodies are responsible for local governance in towns that are more developed than rural areas but smaller than metropolitan cities.
  
• Municipal Corporation: For larger urban areas or cities, Municipal Corporations are responsible for comprehensive urban governance, including the provision of all essential services such as water, sewage, urban planning, health, education, and more.
  

Composition and Elections of Urban Local Bodies

• Article 243R: This provision mandates that members of urban local bodies (including the Mayor or Chairperson) are directly elected by the people of the municipal area. The areas are divided into wards, each of which elects one representative.
  
• Ward Committees: Article 243S mandates the formation of Ward Committees in large municipalities (with a population over 300,000). These committees are meant to involve citizens more directly in local governance and decision-making processes.
  
• Reservation of Seats:
  • Scheduled Castes (SC) and Scheduled Tribes (ST): Seats are reserved in proportion to their population in the municipal body.
  • Women: One-third of the total seats are reserved for women. This reservation ensures that women have a more prominent role in local governance and decision-making.
  • Backward Classes: The Amendment allows for the reservation of seats for backward classes, which can be decided by the respective state legislatures.

Tenure and Dissolution of Urban Local Bodies

• Fixed Five-Year Term: Every urban local body has a fixed five-year term, after which elections must be held.
• Dissolution: If an urban local body is dissolved before the end of its term, fresh elections must be held within six months, and the newly elected body will serve the remainder of the previous body’s term.

Powers and Functions of Urban Local Bodies

Article 243W empowers urban local bodies to perform a wide range of functions. The 12th Schedule lists 18 specific functions that urban local bodies are responsible for, including:

1. Urban Planning and Regulation of Land Use
2. Water Supply and Sanitation
3. Health and Education Services
4. Public Transport and Road Development
5. Waste Management and Environmental Protection
6. Slum Development and Poverty Alleviation
7. Public Safety, including Fire Services

This provision allows municipalities to function as effective service providers and urban planners, making them essential to the development of urban areas.

Financial Empowerment of Urban Local Bodies

urban local bodies were granted financial autonomy to enable them to manage their functions effectively.

• Article 243X: This gives the state legislature the authority to assign specific taxes, duties, and tolls to urban local bodies, allowing them to generate their own revenue.
  
• State Finance Commission: The Governor of the state is required to set up a State Finance Commission every five years, which recommends the distribution of taxes and grants to urban local bodies from the State’s Consolidated Fund. This ensures that urban local bodies receive the necessary financial support to carry out their functions.

Planning Committees

The Amendment also created mechanisms for better coordination in planning across jurisdictions:

• District Planning Committees (DPCs): These committees aim to integrate the planning processes of rural and urban areas within a district.
  
• Metropolitan Planning Committees (MPCs): For cities with a population over 1 million, MPCs are responsible for drafting and coordinating metropolitan development plans.

State Election and State Finance Commissions

• State Election Commission: This Commission is responsible for conducting elections for urban local bodies every five years, ensuring that elections are free and fair.
  
• State Finance Commission: It recommends the distribution of resources between the state and urban local bodies, ensuring that urban local bodies have the financial means to carry out their duties effectively.

Impact of the 74th Amendment

The 74th Amendment has had a significant impact on urban governance in India. Some of the key positive outcomes include:

1. Empowered Local Governance: The Amendment ensured that urban local bodies became a constitutional entity, which has allowed them to operate with greater authority and legitimacy.
   
2. Improved Service Delivery: The focus on urban planning, waste management, sanitation, and other services has helped improve the quality of life in many cities. urban local bodies are now better equipped to manage the urban environment and cater to the needs of urban populations.
   
3. Inclusive Representation: The provision of reservations for SCs, STs, women, and backward classes has ensured that urban local bodies reflect the diverse population of urban areas, making governance more inclusive.
   
4. Better Financial Resources: The financial autonomy given to urban local bodies has enabled them to raise funds through taxes and duties, and the establishment of State Finance Commissions has provided a clear framework for financial devolution.

Challenges and Limitations

Despite the positive impacts, the 74th Amendment has faced several challenges in its implementation:

1. Weak Capacity and Infrastructure: Many urban local bodies still lack the capacity, both in terms of human resources and infrastructure, to effectively carry out their functions.
   
2. Dependence on State Governments: While urban local bodies have been given certain powers, many are still dependent on state governments for funding, decision-making, and the devolution of powers.
   
3. Delayed Implementation of Reservation: In some states, the reservation of seats for women and backward classes has been implemented with delays or ineffective execution.

Conclusion

The 74th Constitutional Amendment Act, 1992, was a significant step towards strengthening urban local governance in India. By providing constitutional backing to urban local bodies, the Act not only empowered urban residents but also ensured that urban planning and service delivery were handled with greater transparency, efficiency, and accountability. 

While the Amendment has faced challenges in its implementation, its positive impact on urban governance cannot be overstated. Continued efforts to address the challenges and strengthen urban local bodies will be crucial for realising the full potential of urban local governance in India.