The 74th Constitutional Amendment Act came into force on June 1, 1993. It introduced the concept of local self-government and municipality in India. At the regional level, it established two new tiers of government, the Panchayat Raj and the Nagar Palika. 

These new levels of government are in charge of the day-to-day administration of a specific local area. The 74th Constitutional Amendment Act also granted constitutional status to Panchayat Raj Institutions (PRIs). It expanded local bodies' powers to include taxation and other functions. The 74th Constitutional Amendment Act also permitted more decentralization of decision-making, with district-level Panchayat Raj organizations having a bigger influence on policy decisions. The Amendment also required that at least one-third of these PRIs' elected members be women.

The 74th Constitutional Amendment Act is a topic relevant to the UPSC CSE context under General Studies Paper II. It is a basic topic for aspirants to understand the dynamic aspect of the 74th Constitutional Amendment Act. The 74th Constitutional Amendment Act is an essential topic for UPSC Civil Services because it highlights the key features of the 74th Constitutional Amendment Act, which are frequently discussed in the exam. Join UPSC Coaching today to boost your preparation. 

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The Urban Governments - Municipalities

The 73rd and 74th Amendments to the Indian Constitution established the urban governments. A significant transformation can be seen in the operation of local bodies after these reforms came into force. This was done by decentralizing decision-making power from the Central Government to the local authorities. 

India's urban governments are divided into three levels:

• Nagar Panchayats: These are local bodies that govern areas in transition from rural to urban. They typically provide basic civic amenities like water supply, sanitation, and street lighting.
• Municipal Councils or Nagar Palikas: These are local governments responsible for larger urban areas. 
  • They provide a range of essential services to residents. These services are water supply, waste management, and maintenance of local roads and public spaces.

Municipal Corporations: These are India's largest and most complex urban governments. They are responsible for managing large cities. A mayor typically heads municipal corporations. They are responsible for providing healthcare, education, and public transportation services.

The origin of urban local bodies in India goes back to ancient empires such as the Mauryan and Gupta empires.

The Municipal Corporation Act of 1882 was enacted during the British Raj. This Act established the framework for developing urban municipal governments in India. With independence, the Indian Constitution acknowledged the need for effective urban governance. It permitted the formation of urban local bodies. The Nagarpalika Act of 1992, or the 74th Amendment, offered increased autonomy to urban local bodies. It provided for the development of three-tier urban local government structures.

The Amendment also provided for the devolution of powers and responsibilities to urban local governments in areas such as urban planning, land use control, public health and sanitation, housing, transportation, and public works, among others. The government of India has also developed many programmes to encourage the growth of local urban bodies. These include the JNNURM, AMRUT, and the Smart Cities Mission.

Evolution of the Urban Government

Let us discuss the evolution of urban government from the pre-colonial era to the post-independence period.

Pre-Colonial Era

The concept of urban governance was nonexistent throughout this period. Most cities were administered by monarchs, emperors, or local tribal chieftains.

British Colonial Rule

This Amendment Act set a three-tier administrative system for municipal governance in India. The Municipal Corporation Act of 1882 was enacted by the Britishers during the colonial era.

Post-Independence Period

In 1992, the Government of India passed the 74th Constitutional Amendment Act. This 74th Constitutional Amendment Act mandated the formation of municipal corporations in all major cities with populations greater than one million. It also established metropolitan planning committees. It gave municipal governments the authority to design and construct urban infrastructure. The 21st century has seen a shift in emphasis towards smart cities and sustainable urban development. The Indian government launched the Smart Cities Mission in 2015 with the goal of developing 100 smart cities across the country by 2022. The government has made various efforts to encourage urban development and improve the quality of life. The Smart City Mission, AMRUT, the Pradhan Mantri Awas Yojana, and the Swachh Bharat Mission are among them.

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74th Amendment of the Indian Constitution

The 74th Constitutional Amendment Act establishes a basic foundation for decentralizing powers and functions to municipal organizations at various levels. On the other hand, the burden of giving it a practical shape falls on the states. 

• The 74th Constitutional Amendment Act  to the Indian Constitution was enacted in 1992. Its goal is to give urban local governments (ULGs) constitutional recognition and protection.
• The 74th Constitutional Amendment Act created a new Part IX of the Constitution. Part IX includes Articles 243P through 243ZG. It addresses the composition, powers, functions, and obligations of the ULGs. It also talks about the role of the state government in their administration.
• The 74th Constitutional Amendment Act also created a new eleventh schedule to the Constitution. It details the many responsibilities that ULGs are authorized to carry out. These functions include public health, sanitation, water supply, education, housing, and urban poverty. 

Importance of Urban Government

The urban government is essential because it performs a wide range of functions. They are responsible for providing critical services like:

• water supply, 
• waste management, 
• sanitation, and 
• Public transportation. 

They also ensure public safety and security. This is done by maintaining law and order, emergency services, and promoting disaster management.

• Urban governments develop rules and laws to encourage economic development in cities.
• The urban government is in charge of developing infrastructure, housing, and job creation projects.
• The urban government ensures the effective and equal allocation of resources and services to its residents.
• Urban government is essential as it defends citizens' rights, particularly those of women and children.
• The urban administration is also in charge of conserving and protecting the environment in cities.
• Urban governments aim to safeguard citizens' safety and security by enforcing rules and regulations.

Key Features of the 74th Constitutional Amendment Act - 1992

Towns and cities contribute substantially to the economic development of the country.These urban centres also play an important support role in the development of the rural hinterland. To keep this economic transformation in line with needs and realities at the grass-root level, it is necessary that the people and their representatives are fully involved in the planning and implementation of the programmes at the local level. If democracy in Parliament and State Legislatures is to remain strong and stable, its roots must reach towns and villages and the cities where the people live. Essential features of the 74th Constitutional Amendment Act are discussed below in detail.

Constitution of Municipalities 

The Indian Constitution establishes a three-tiered structure of government: union, state, and municipalities. The 74th Constitutional Amendment Act of 1992 provided for the formation of municipalities. Depending on the urban area's size, population, and revenue, the Act provides for the formation of urban local authorities. Examples of ULA's are the Municipal Corporation, Municipal Council, Town Area Committee, and Nagar Panchayat.

• State legislatures have the authority to enact legislation governing the formation and governance of municipalities in their respective states.
• Municipalities have the authority to levy taxes, fees, and levies in order to provide services to their inhabitants.
• Municipal bodies also have the authority to enact rules and ordinances to govern their area.

Composition of Municipalities

Municipalities' composition might vary depending on the local authority in question. Most towns will have a governing body or council to decide on the municipality's day-to-day operations. This governing body may also be in charge of approving the annual budget, establishing local ordinances, granting licenses, and hiring municipal staff. Most municipalities will have a mayor or another elected figure who serves as the municipality's central executive.

• Departments such as police, fire, sanitation, public works, parks and recreation, and others are components of municipalities. 
• These departments are in charge of delivering municipal services and recreational activities. 
• Some towns may have special districts or boards in charge of certain areas of the municipality. Some examples of these areas are public utilities, airports, and school districts.

Constitution of Wards Committees

Wards Committees increase public involvement in local self-government. They are formed in urban local bodies with a population of 3 lakhs or more, as well as in all municipalities throughout the state. According to the State Municipal Act, the Wards Committee is formed by the city and must consist of at least 11 and no more than 21 members.

Reservation of seats 

The seats in Wards Committees are reserved in the same manner as the seats in the municipality. This includes reservations for Scheduled Castes, Scheduled Tribes, and women.

Duration of Municipalities

The duration of a municipality is five years. This can be extended by the state government by a maximum of six months.

Powers and Functions of the Municipalities

The powers and functions of the municipalities are laid down in the respective State Municipal Acts. Generally, the municipalities are responsible for providing civic services such as water supply, sanitation, health and hygiene, solid waste management, roads and bridges, street lighting, public transport, slum improvement, and public parks. They are also responsible for tax collection, issuing licenses, and providing public amenities.

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Finances of Municipalities

Municipalities are responsible for raising and managing their finances. This includes the collection of taxes and fees, the setting of budgets, and the approval of expenditures. They also have the authority to borrow money and issue bonds. Municipalities must also ensure that their financial resources are used responsibly and that all costs are in accordance with the law.

Finance Commission

The 74th Constitutional Amendment Act introduces many of the significant features related to the Finance Commission. These include:

• Finance Commission for Municipalities: The Amendment provided for the establishment of a Finance Commission at the state level. It will review the financial position of municipalities. It will also make recommendations on matters such as taxes, grants, and allocation of resources.
• Grants for Municipalities: The Amendment made it mandatory for states to provide grants-in-aid to municipalities. This grant is for the provision of basic services such as water supply, sanitation, and roads.
• Devolution of Funds: The Amendment also made it mandatory for states to devolve funds to municipalities on a regular basis. This is to ensure their financial independence and autonomy.

Municipality Elections

Municipal elections are held every five years to elect members of the city council. These officials are in charge of making decisions on behalf of the people in their municipality. They also have the power to enact laws and establish policies that influence the local populace.

Accountancy and audit

Municipalities must preserve proper financial records. These records should be submitted to the local government for audit. This audit verifies that the municipality's finances are correctly managed. If the local government suspects any anomalies, it may undertake its audit.

Committee for District Planning

District Planning Committees are responsible for developing plans for district development. They are responsible for assessing the needs of the district and formulating plans for its development. They also have the authority to allocate funds for projects that would benefit the district.

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Eight Types of Urban Government 

In India, the urban local government system is divided into several types of urban bodies. This may vary based on the size and population of the urban area. The eight types of urban local government bodies in India are:

• Municipal Corporation: This type of urban body is established in large cities with a population of more than one million. A mayor heads municipal corporations. They are responsible for providing essential services such as water supply and sanitation. 
• Municipality: This type of urban body is established in smaller urban areas with a population of more than 100,000 but less than one million. A chairperson or a president heads municipalities. They are responsible for providing basic civic amenities.
• Cantonment Board: Cantonment boards are established in areas where military stations are located. They are responsible for providing civic amenities to both the civilian and military populations.
• Town Panchayat: This type of urban body is established in areas with a population of less than 100,000. A president heads town panchayats. They are responsible for providing basic civic amenities such as water supply and street lights.
• Nagar Palika: This type of urban body is established in areas with a population of more than 20,000 but less than 100,000. A chairperson or a president heads Nagar Palikas and is responsible for providing basic civic amenities.
• Notified Area Council: This type of urban body is established in areas with a population of more than 10,000 but less than 20,000. A chairperson heads notified area councils and is responsible for providing basic civic amenities.
• Special Purpose Agency: These are urban bodies that are established to address specific issues. These issues are urban planning, infrastructure development, and environmental conservation. Examples of special-purpose agencies include metropolitan planning committees and development authorities.
• Improvement Trust: Improvement trusts are established in areas that require the development or improvement of infrastructure. They are responsible for carrying out development activities. Developmental activities include land acquisition, infrastructure development, and construction of buildings.

Municipal corporation 

The Municipal Corporation of India is one of the eight types of urban local government bodies in India. It is established in large cities with a population of more than one million. A mayor heads the corporation. It is responsible for providing essential services such as water supply, sanitation, etc.

• The Municipal Corporation Act of the respective state governs the functioning of the Municipal Corporation. The Act outlines its powers and responsibilities. The corporation is responsible for maintaining public infrastructure, including roads, bridges, and public transportation.
• One of the key functions of the Municipal Corporation is to ensure public health and sanitation. It is responsible for providing safe drinking water, proper sanitation facilities, and waste management services. The corporation also maintains public health by regulating food and water quality, controlling diseases, and conducting public health campaigns.
• The Municipal Corporation is also responsible for providing education, cultural and recreational services, and promoting tourism in the city. It can establish and maintain public libraries, museums, art galleries, and other cultural facilities. The corporation can promote sports and other recreational activities and develop parks and other public spaces for the citizens.

Municipality

Elected representatives govern municipalities in India. These representatives are responsible for decision-making and implementation of policies and programs. However, their effectiveness depends on the availability of resources, skilled personnel, and the degree of local participation and accountability in governance.

In recent years, the government of India has initiated several programs to promote the development of municipalities and enhance their capacity to provide quality services to citizens. 

Notified area committee

Area committees are political or administrative entities constituted at the local level. regional issues in specific areas are addressed by them. The state government establishes the area committees in accordance with the 73rd and 74th CAA. These committees are founded to promote development in local areas. They ensure people's active participation in the development process and empower the local community.

Town area committee

A Town Area Committee (TAC) is an Indian local government body responsible for the development of an urban area. The local government constitutes the committee. It is in charge of running the town's affairs, such as providing necessary services, infrastructure, and public facilities. The people of the area choose the members of the committee.

Cantonment Board

In India, a cantonment board is a local governing body that oversees a cantonment, which is a military area or base. The board is in charge of the area's public infrastructure, law and order, and development projects. The central government appoints the board's members.

Township

A township includes a range of residential, commercial, and institutional facilities. Examples are parks, open spaces, and other amenities.

Private companies or government agencies usually develop townships. They provide housing and other infrastructure in areas with limited urbanization. They are often designed to provide a high standard of living and are popular among middle and upper-class families.

Depending on their location, townships in India are governed by local authorities, such as the municipality or the panchayat. The local authorities are responsible for providing essential services. These services are water supply, sanitation, and waste management. They regulate land use and development in the township, too.

Port trust

A Port Trust is an Indian local government body in charge of developing a port or harbour. The Central Government appoints the Port Trust's members. The Port Trust is in charge of public infrastructure, law and order, and development projects in the port area.

Special purpose Agency

A special purpose agency (SPA) is a type of organization that is established to address specific issues or challenges in a particular sector or industry. SPAs are usually established by the government or by private entities. They are designed to be more flexible and efficient than traditional government agencies.

SPAs are established to carry out a specific function, such as managing a public transport system, developing and maintaining public infrastructure, or providing a particular service. They are often given greater autonomy and more resources than traditional government agencies to carry out their functions. They are subject to less bureaucratic red tape.

SPAs can be either public or private entities, and they may be established at the local, state, or national level. Examples of SPAs include public transport authorities, water and sewerage boards, and economic development corporations.

Conclusion

Municipal corporations are established in large cities with a population of more than one million. The system of Municipalities or Urban Local Governments was constitutionalized through the 74th Constitutional Amendment Act of 1992. The provisions in this Amendment are included in Part IXA, which came into force on June 1, 1993. Therefore, it gave a constitutional foundation to the local self-government units in urban areas. 

This article revolves around an essential topic for the IAS Exam, that is, Municipalities or Urban Local Government, provisions of the 74th Amendment Act, 1992. 

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