🔆 “The states in India seem reluctant to empower urban local bodies both functionally as well as financially.” Comment.
(10 Marks, 150 Words)

(GS2 – Urban Governance | 74th Amendment Act)

📍 Context
The 74th Constitutional Amendment Act, 1992 aimed to empower ULBs for democratic decentralisation. However, most states remain reluctant to devolve powers and finances, limiting ULB effectiveness.

Challenges

🔹 Functional Reluctance
• Limited Devolution: Slow transfer of functions listed in the 12th Schedule; use of parallel bodies weakens ULB role.
• Opaque Appointments: Ward committees often not formed transparently.
• Weak Mayoral Authority: Power concentrated with municipal commissioners.

🔹 Financial Reluctance
• Dependence on State Grants → low financial autonomy.
• Poor Revenue Collection & over-reliance on property tax (up to 60%).
• Ineffective State Finance Commissions → irregular fund allocation.

Way Forward

✅ Enhance Financial Autonomy: Devolve more taxes; promote municipal bonds.
✅ Strengthen Devolution of Powers: Regular reviews of 74th Amendment compliance.
✅ Capacity Building: Invest in training & best practices (e.g., Karnataka, Mizoram).
✅ Streamlined Accounting: Ensure transparent budgeting & timely audits.


Bottom Line:
ULB empowerment needs consistent political will, fiscal autonomy, and functional devolution for effective urban governance.

#UrbanGovernance #74thAmendment #ULBs #UPSCMains #GS2