Salient Features of 74th Constitutional Amendment Act

The 74th Constitutional Amendment Act: Reshaping Urban Governance in India

The 74th Constitutional Amendment Act of 1992 stands as a landmark legislation in India’s constitutional history, fundamentally altering the landscape of urban governance. This amendment, along with the subsequent enactment of the Municipal Solid Waste (Management and Handling) Rules, 2000, introduced a new era of decentralized governance in urban areas, empowering local bodies and fostering citizen participation. This article delves into the salient features of this transformative amendment, examining its impact on urban administration and its implications for the future of India’s cities.

The Genesis of the Amendment: Recognizing the Need for Decentralization

The 74th Amendment was a direct response to the growing recognition of the limitations of centralized urban governance in India. The existing system, characterized by a top-down approach, had failed to address the complex challenges faced by rapidly urbanizing cities. Issues like inadequate infrastructure, poor sanitation, and lack of citizen participation were rampant, leading to a growing sense of frustration and alienation among urban residents.

The need for a more responsive and accountable system of urban governance became increasingly apparent. The 1988 report of the Eleventh Finance Commission, which highlighted the need for strengthening local bodies, further fueled the momentum for constitutional reform. This report, along with the recommendations of the National Commission on Urbanization (1988), paved the way for the 74th Amendment, which aimed to empower local bodies and bring about a paradigm shift in urban governance.

Salient Features of the 74th Constitutional Amendment Act: A Framework for Decentralization

The 74th Amendment introduced a comprehensive framework for urban governance, encompassing various key features:

1. Constitutional Recognition of Urban Local Bodies:

The amendment enshrined urban local bodies (ULBs) as institutions of self-governance, granting them constitutional status and recognizing their vital role in urban development. This recognition was a significant departure from the previous system, where ULBs were treated as mere administrative units under the control of state governments.

2. Establishment of Three-Tier System of Urban Governance:

The amendment established a three-tier system of urban governance, comprising:

• Municipalities: For urban areas with a population of up to 1 lakh.
• Municipal Corporations: For urban areas with a population exceeding 1 lakh.
• Notified Area Committees: For smaller urban areas with specific characteristics.

This tiered structure aimed to ensure that urban governance was tailored to the specific needs and challenges of different urban areas.

3. Granting of Powers and Functions to ULBs:

The amendment mandated the devolution of powers and functions to ULBs in key areas, including:

• Planning and Development: ULBs were granted the authority to prepare and implement urban development plans, including land use planning, infrastructure development, and housing schemes.
• Public Health and Sanitation: ULBs were entrusted with the responsibility for public health services, sanitation, and solid waste management.
• Education and Social Welfare: ULBs were given the power to manage and regulate educational institutions and social welfare programs within their jurisdiction.
• Finance and Taxation: ULBs were empowered to levy taxes and fees to generate their own revenue, promoting financial autonomy and reducing dependence on state grants.

4. Establishment of State Finance Commissions:

The amendment mandated the establishment of State Finance Commissions (SFCs) in each state, tasked with recommending the distribution of financial resources between the state government and ULBs. This mechanism aimed to ensure that ULBs received adequate financial resources to perform their functions effectively.

5. Provision for Citizen Participation:

The amendment emphasized the importance of citizen participation in urban governance. It mandated the establishment of ward committees, comprising elected representatives from each ward, to facilitate local-level decision-making and ensure greater accountability to the citizens.

6. Establishment of Urban Local Bodies (ULB) Elections:

The amendment mandated regular elections for ULBs, ensuring democratic accountability and representation. This provision aimed to strengthen the legitimacy of ULBs and empower citizens to choose their representatives.

7. Role of State Governments:

While the amendment empowered ULBs, it also recognized the role of state governments in providing guidance and support to ULBs. State governments were tasked with ensuring the effective implementation of the amendment and providing technical assistance to ULBs.

Impact of the 74th Amendment: A Mixed Bag of Results

The 74th Amendment has had a significant impact on urban governance in India, leading to both positive and negative outcomes.

Positive Impacts:

• Increased Decentralization: The amendment has led to a significant increase in decentralization of urban governance, empowering ULBs to take ownership of urban development and address local needs.
• Enhanced Citizen Participation: The provision for ward committees and regular elections has fostered greater citizen participation in urban governance, leading to increased accountability and responsiveness.
• Improved Infrastructure and Services: In some cities, ULBs have successfully utilized their newfound powers to improve infrastructure and public services, leading to better living conditions for residents.
• Financial Autonomy: The amendment has provided ULBs with greater financial autonomy, enabling them to raise their own revenue and reduce dependence on state grants.

Negative Impacts:

• Limited Devolution of Powers: Despite the amendment’s intent, the actual devolution of powers to ULBs has been uneven across states, with many states reluctant to relinquish control over key functions.
• Financial Constraints: ULBs continue to face significant financial constraints, with inadequate funding from state governments and limited capacity to generate their own revenue.
• Lack of Capacity and Expertise: Many ULBs lack the necessary capacity and expertise to effectively manage their expanded responsibilities, leading to inefficiencies and delays in service delivery.
• Political Interference: Political interference in ULBs remains a significant challenge, undermining their autonomy and hindering their ability to function effectively.

Challenges and Opportunities for the Future

Despite its significant impact, the 74th Amendment faces several challenges that need to be addressed to ensure its full potential is realized.

1. Strengthening Financial Autonomy:

One of the biggest challenges facing ULBs is their limited financial autonomy. While the amendment empowers them to levy taxes and fees, the actual revenue generation capacity of ULBs remains limited, particularly in smaller cities. To address this, there is a need for:

• Rationalization of Tax Structures: Simplifying and rationalizing the tax structure for ULBs, making it more efficient and equitable.
• Increased State Funding: Ensuring adequate and predictable funding from state governments to support ULBs in fulfilling their responsibilities.
• Exploring Alternative Revenue Sources: Exploring innovative revenue generation models, such as public-private partnerships and user charges, to supplement ULB finances.

2. Enhancing Capacity Building:

The lack of capacity and expertise within ULBs is another major challenge. To address this, there is a need for:

• Training and Skill Development: Providing comprehensive training programs for ULB officials to enhance their technical and managerial skills.
• Capacity Building Initiatives: Implementing capacity building initiatives to equip ULBs with the necessary tools and resources to perform their functions effectively.
• Attracting and Retaining Skilled Personnel: Creating an attractive and competitive environment to attract and retain skilled personnel in ULBs.

3. Promoting Citizen Participation:

While the amendment emphasizes citizen participation, its actual implementation has been uneven. To enhance citizen participation, there is a need for:

• Strengthening Ward Committees: Empowering ward committees to play a more active role in local decision-making and ensuring their effective functioning.
• Promoting Transparency and Accountability: Enhancing transparency and accountability in ULB operations through mechanisms like public hearings, online platforms, and citizen feedback mechanisms.
• Empowering Citizen Groups: Encouraging the formation and participation of citizen groups in urban governance, providing them with a platform to voice their concerns and contribute to decision-making.

4. Addressing Political Interference:

Political interference in ULBs remains a significant challenge, undermining their autonomy and hindering their ability to function effectively. To address this, there is a need for:

• Strengthening Institutional Mechanisms: Strengthening institutional mechanisms to protect ULBs from political interference, such as independent regulatory bodies and ombudsman offices.
• Promoting Political Will: Fostering a political culture that respects the autonomy of ULBs and encourages their effective functioning.
• Raising Public Awareness: Raising public awareness about the importance of independent and accountable ULBs, fostering citizen pressure for political reform.

5. Leveraging Technology:

Technology can play a crucial role in enhancing urban governance by improving efficiency, transparency, and citizen engagement. ULBs can leverage technology to:

• Develop Online Platforms: Create online platforms for citizen feedback, grievance redressal, and access to information about ULB services.
• Implement GIS Systems: Utilize Geographic Information Systems (GIS) for efficient planning and management of urban infrastructure and services.
• Adopt Smart City Technologies: Implement smart city technologies to improve traffic management, waste management, and public safety.

Conclusion: A Path Towards Sustainable Urban Development

The 74th Constitutional Amendment Act has been a significant step towards decentralizing urban governance in India. However, its full potential remains unrealized due to various challenges. Addressing these challenges through a combination of policy reforms, capacity building initiatives, and technological advancements is crucial for ensuring the effective functioning of ULBs and achieving sustainable urban development in India.

By empowering ULBs, fostering citizen participation, and promoting transparency and accountability, India can create vibrant and resilient cities that cater to the needs of its growing urban population. The 74th Amendment provides a solid foundation for this transformation, but it requires sustained efforts from all stakeholders to ensure its successful implementation and realize its full potential.

Table: Salient Features of the 74th Constitutional Amendment Act

References

• Constitution of India
• The 74th Constitutional Amendment Act, 1992
• National Commission on Urbanization (1988)
• Eleventh Finance Commission Report (1988)
• Ministry of Housing and Urban Affairs, Government of India
• National Institute of Urban Affairs
• Centre for Policy Research
• Indian Institute of Public Administration

This article provides a comprehensive overview of the 74th Constitutional Amendment Act, highlighting its salient features, impact, challenges, and opportunities for the future. It emphasizes the need for continued efforts to strengthen ULBs, promote citizen participation, and leverage technology to achieve sustainable urban development in India.

Frequently Asked Questions on the 74th Constitutional Amendment Act

Here are some frequently asked questions about the 74th Constitutional Amendment Act, focusing on its salient features and impact:

1. What is the main purpose of the 74th Constitutional Amendment Act?

The 74th Amendment aims to decentralize urban governance in India by empowering urban local bodies (ULBs) and fostering citizen participation in urban development. It seeks to create a more responsive and accountable system of urban administration.

2. How does the amendment recognize urban local bodies?

The amendment constitutionally recognizes ULBs as institutions of self-governance, granting them a legal and political status. This elevates their role from mere administrative units to institutions with significant power and responsibility.

3. What are the three tiers of urban governance established by the amendment?

The amendment establishes a three-tier system of urban governance:

• Municipalities: For urban areas with a population of up to 1 lakh.
• Municipal Corporations: For urban areas with a population exceeding 1 lakh.
• Notified Area Committees: For smaller urban areas with specific characteristics.

4. What powers and functions are devolved to ULBs under the amendment?

The amendment mandates the devolution of powers and functions to ULBs in key areas, including:

• Planning and Development: Preparing and implementing urban development plans, including land use planning, infrastructure development, and housing schemes.
• Public Health and Sanitation: Providing public health services, sanitation, and solid waste management.
• Education and Social Welfare: Managing and regulating educational institutions and social welfare programs.
• Finance and Taxation: Levying taxes and fees to generate their own revenue.

5. What is the role of State Finance Commissions (SFCs) under the amendment?

SFCs are mandated to recommend the distribution of financial resources between state governments and ULBs. This ensures that ULBs receive adequate funding to perform their functions effectively.

6. How does the amendment promote citizen participation in urban governance?

The amendment emphasizes citizen participation through:

• Ward Committees: Elected representatives from each ward, facilitating local-level decision-making.
• Regular Elections: Ensuring democratic accountability and representation in ULBs.

7. What are some of the challenges faced in implementing the 74th Amendment?

Despite its intent, the amendment faces several challenges, including:

• Limited Devolution of Powers: Many states are reluctant to relinquish control over key functions.
• Financial Constraints: ULBs face inadequate funding from state governments and limited revenue generation capacity.
• Lack of Capacity and Expertise: Many ULBs lack the necessary skills and resources to manage their responsibilities effectively.
• Political Interference: Political interference undermines ULB autonomy and hinders their ability to function effectively.

8. What are some ways to address the challenges and ensure the success of the 74th Amendment?

Addressing these challenges requires:

• Strengthening Financial Autonomy: Rationalizing tax structures, increasing state funding, and exploring alternative revenue sources.
• Enhancing Capacity Building: Providing training programs, implementing capacity building initiatives, and attracting skilled personnel.
• Promoting Citizen Participation: Empowering ward committees, promoting transparency and accountability, and encouraging citizen groups.
• Addressing Political Interference: Strengthening institutional mechanisms, fostering political will, and raising public awareness.
• Leveraging Technology: Developing online platforms, implementing GIS systems, and adopting smart city technologies.

9. What is the overall impact of the 74th Amendment on urban governance in India?

The 74th Amendment has had a significant impact, leading to increased decentralization, enhanced citizen participation, and improved infrastructure and services in some cities. However, its full potential remains unrealized due to the challenges mentioned above.

10. What is the future of urban governance in India in light of the 74th Amendment?

The 74th Amendment provides a solid foundation for a more decentralized and participatory system of urban governance. Its success depends on sustained efforts to address the challenges and ensure its effective implementation. By empowering ULBs, fostering citizen participation, and leveraging technology, India can create vibrant and resilient cities that cater to the needs of its growing urban population.

These FAQs provide a concise overview of the 74th Constitutional Amendment Act, its salient features, and its impact on urban governance in India. They highlight the challenges and opportunities for the future, emphasizing the need for continued efforts to realize the full potential of this landmark legislation.

Here are a few MCQs with 4 options each, focusing on the salient features of the 74th Constitutional Amendment Act:

1. Which of the following is NOT a key objective of the 74th Constitutional Amendment Act?

a) To decentralize urban governance in India
b) To empower urban local bodies (ULBs)
c) To establish a single-tier system of urban governance
d) To promote citizen participation in urban development

Answer: c) To establish a single-tier system of urban governance

2. The 74th Amendment mandates the establishment of which of the following bodies to recommend financial distribution between state governments and ULBs?

a) National Finance Commission
b) State Finance Commissions
c) Urban Development Boards
d) Municipal Planning Committees

Answer: b) State Finance Commissions

3. Which of the following is NOT a power or function devolved to ULBs under the 74th Amendment?

a) Planning and development of urban areas
b) Providing public health and sanitation services
c) Managing and regulating educational institutions
d) Appointing judges to the High Courts

Answer: d) Appointing judges to the High Courts

4. The 74th Amendment promotes citizen participation in urban governance through which of the following mechanisms?

a) Ward committees
b) Regular elections for ULBs
c) Both a) and b)
d) None of the above

Answer: c) Both a) and b)

5. Which of the following is a major challenge faced in implementing the 74th Amendment?

a) Lack of political will to empower ULBs
b) Inadequate financial resources for ULBs
c) Limited capacity and expertise within ULBs
d) All of the above

Answer: d) All of the above

6. The 74th Amendment recognizes urban local bodies as:

a) Administrative units under the control of state governments
b) Institutions of self-governance
c) Advisory bodies to the state government
d) Non-governmental organizations

Answer: b) Institutions of self-governance

7. Which of the following is NOT a tier of urban governance established by the 74th Amendment?

a) Municipalities
b) Municipal Corporations
c) Village Panchayats
d) Notified Area Committees

Answer: c) Village Panchayats

8. The 74th Amendment aims to enhance the financial autonomy of ULBs by:

a) Providing them with unlimited funding from the state government
b) Empowering them to levy taxes and fees
c) Eliminating all taxes levied by the state government
d) Requiring all citizens to pay a fixed annual fee to ULBs

Answer: b) Empowering them to levy taxes and fees

9. Which of the following is a potential benefit of leveraging technology in urban governance?

a) Improved efficiency and transparency
b) Enhanced citizen engagement
c) Better planning and management of urban infrastructure
d) All of the above

Answer: d) All of the above

10. The 74th Amendment Act was passed in the year:

a) 1989
b) 1992
c) 1995
d) 2000

Answer: b) 1992

These MCQs cover various aspects of the 74th Constitutional Amendment Act, testing understanding of its key features, objectives, challenges, and potential for future development.