74th Constitutional Amendment Act

Polity

As usual, ask these basic questions to understand the topic well:

What is 74th Constitutional Amendment Act?
What goals does the 74th Amendment Act seek to achieve?
What clauses in the 74th Constitutional Amendment Act are constitutional?
What are the Salient features of the 74th Constitutional Amendment Act?

The 74th Constitutional Amendment Act of 1992 established the Municipalities or Urban Local Governments system as a constitutional entity.

In India, the phrase “Urban Local Government” refers to the process through which the electorate governs an urban region. An urban local government can only regulate activities inside a given urban region that the state government has designated.

Owing to this act, Municipalities are now governed as Constitution’s justiciable provisions.

What is 74th Constitutional Amendment Act?

Decentralization of powers and authorities to Urban Local Bodies (ULB) at various levels was mandated by the 74th Amendment Act. Additionally, this amendment attempted to establish an institutional structure that would permit entry through autonomous local governments in the nation’s cities.

In order for urban governments to successfully serve as local government units, the legislation intends to revitalise them.

Part IXA, which went into effect on June 1, 1993, contains the provisions in this amendment. As a result, it provided the local self-government entities in metropolitan areas with a constitutional basis.

Additionally, it granted the ULBs to carry out 18 tasks stated in the Indian Constitution’s 12th Schedule.

A fundamental basis for the decentralisation of rights and authorities to Municipal organisations at various levels is provided by the 74th Amendment Act of 1992. Although it is responsibility of States to give it a concrete form.

What are the objectives of 74th Amendment Act?

Municipalities now have constitutional status thanks to the statute.
In other words, state governments must implement the new municipal system in compliance with the act’s requirements within the terms of their constitutions.
In order for municipal governments to properly serve as local government units, the legislation aims to improve and reinvigorate them.

What are the constitutional provisions of 74th Constitutional Amendment Act?

It was passed by Parliament in December 1992 and came into force on 1 June 1993 adding Part IX A (Articles 243-P to 243-ZG) and the 12th schedule in the Constitution.
The 74th amendment provided a uniform law for all the municipalities in the nation.

Salient features of the 74th Constitutional Amendment Act

Composition:
- Every member of a municipality must be chosen directly by the residents of that area.
- Each municipal region will be divided into territorial constituencies known as wards.
- Election of municipality’s chairperson may be regulated by the state legislature.
Wards Committees:
- Within the boundaries of a municipality with a population of at least three lakh, a ward committee made up of one or more wards must be established.
- The state legislature may also set any provisions for the formation of other committees in addition to the ward committees.
Reservation of Seats:
- Reservation of seats for SC and ST is provided in every municipality in proportion to their population.
- Provision for reservation of 1/3rd of the total number of seats is also provided for women.
- The state legislature has been empowered to make any provision for reservation in the municipality at any level in favour of the backward class.
Duration of Municipalities:
- Every level of municipality has a five-year term in office. It may, however, be disbanded before its tenure is over.
- If a municipality is elected after it has been dissolved, it will remain in existence for the remainder of the time that it would have remained in existence had it not been dissolved.
Disqualifications:
- A person shall be disqualified on the following grounds:
  - if he is disqualified under any law for the time being in force for the purposes of elections to the legislature of the state concerned; or
  - if he is disqualified under any law made by the state legislature.
- However, no person shall be disqualified on the ground that he is less than 25 years of age if he has attained the age of 21 years.
State Election Commission:
- The State Election Commission has been established and assigned responsibilities for oversight, direction, and control over the creation of electoral rolls.
- The state election commission will also oversee the organization of elections for Municipalities.
Powers and Functions:
- The powers and functions of the Municipalities are endowed by the state legislature.
- The Municipalities prepare a plan for economic development and social justice for the people.
- It implements the scheme of the Central and State government for the betterment of the people.
Finances:

The state legislature may:
- authorize a panchayat to levy and collect taxes, duties, duties, and fees.
- assign to the Panchayat taxes, duties and fees levied and collected by the state government.
- provide grants-in-aid to the Panchayats from the state’s consolidated fund.
Finance Commission:
- The Governor appoints the finance panel to assess the Municipalities’ financial standing.
- The Governor is advised by this commission to choose the guidelines for how taxes should be split between the state and municipalities.
- Additionally, it decides what taxes, levies, tolls, and other charges can be levied against municipalities.
Audit of Accounts:
- State legislatures can make provisions regarding the maintenance and auditing of municipalities’ accounts.
Application to Union Territories:
- The provisions of this Part apply to the territories of the Union. However, the president may specify and direct any exception or modification as required.
Exempted Areas:
- The act does not apply to scheduled areas and tribal areas in the following states.
  - At present, ten states of India have scheduled areas – Andhra Pradesh, Telangana, Jharkhand, Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, and Rajasthan.
  - Presently, there are a total of ten tribal areas (autonomous districts) in the four states of Assam (3), Meghalaya (3), Tripura (1), and Mizoram (3).
- It shall also not affect the functions and powers of the Darjeeling Gorkha Hill Council of West Bengal.
District Planning Committee:
- A district planning committee must be established in each state at the district level to coordinate the plans created by the panchayats and municipalities within the district and to create a development plan for the district as a whole.
- According to the act, the elected officials of the district’s municipalities and district panchayats shall elect from among themselves four-fifths of the members of a district planning committee.
Metropolitan Planning Committee:
- Every metropolitan area shall have a metropolitan planning committee to prepare a draft development plan.
  - A Metropolitan area means an area having a population of 10 lakh or more and consisting of two or more municipalities or panchayats or other contiguous areas.
- The act lays down that two-thirds of the members of a metropolitan planning committee should be elected by the elected members of the municipalities and chairpersons of the panchayats in the metropolitan area from amongst themselves.
Bar to Interference by Courts in Electoral Matters:
- The law forbids courts from meddling in local elections.
- It states that no law governing the definition of constituencies or the distribution of seats within those constituencies may be contested in a court.
- Additionally, it states that no election for a municipality may be contested without an election petition submitted in accordance with the rules established by the state legislature and submitted to the appropriate authority.

Types of urban governments under 74th Constitutional Amendment Act

Article 243Q provides for the establishment of 3 kinds of Municipalities in every state.

Governor will by public notice, will define these three areas based on the population, density of population, revenue generated for local administration, percentage of employment in Non-agricultural activities and other factors.

3 types are as follows:

Nagar Panchayat: A Nagar Panchayat is for those areas which are transitional areas i.e. transiting from Rural Areas to Urban areas.
Municipal Council: A Municipal council is for smaller urban area
Municipal Corporation: A municipal Corporation for Larger Urban Areas

Significance of the 74th Constitutional Amendment:

Aims to improve governance in urban areas by establishing Municipalities and providing them with statutory status and autonomy.
Empowers urban local bodies (ULBs) with greater authority to plan and implement development projects, enhancing local self-governance.
Provides ULBs with the power to levy taxes and generate revenue, reducing dependence on state governments for funding.
Focuses on better delivery of urban services such as sanitation, water supply, and infrastructure through enhanced local administration.
Encourages public participation in the planning and implementation of urban development projects, leading to more responsive governance.

Challenges in the 74th Constitutional Amendment:

Municipalities often face financial constraints due to limited revenue generation and inadequate funding from state governments.
Some state governments are slow to devolve powers and resources to urban local bodies, affecting their effectiveness.
Urban local bodies may lack the necessary administrative capacity and expertise to manage and implement development projects efficiently.
Issues of corruption and mismanagement at the municipal level can hinder effective governance and service delivery.
Low levels of citizen engagement and participation in urban planning and decision-making processes can lead to suboptimal outcomes.
Confusion and inefficiencies arise from overlapping roles and responsibilities between various urban agencies and municipal bodies.

Solutions:

Increase financial devolution from state governments, grant municipalities the power to levy additional local taxes, and establish mechanisms for efficient revenue collection.
Encourage state governments to fully implement the provisions of the 74th Amendment, including passing enabling legislation and providing necessary resources.
Invest in training and capacity-building programs for municipal officials, improve administrative infrastructure, and foster better management practices.
Implement strict anti-corruption frameworks, conduct regular audits, and use technology to promote transparency and accountability.
Facilitate community engagement through public consultations, participatory budgeting, and transparency in decision-making processes.
Clearly define and delineate the roles and responsibilities of various urban agencies to avoid overlap and improve coordination.

Way Forward:

Ensure effective implementation of the 74th Amendment provisions at both state and municipal levels, with regular monitoring and evaluation.
Promote innovative solutions for urban governance, such as smart city initiatives and e-governance tools, to improve efficiency and service delivery.
Encourage collaboration between state governments, municipal bodies, and civil society organizations to address urban challenges collectively.
Create platforms for greater citizen involvement in urban planning and governance, ensuring that local needs and priorities are addressed effectively.
Implement sustainable development practices in urban planning to ensure long-term environmental and economic benefits for cities and towns.

PDF File:

No PDF attached

Subject: Polity

← Back