“Municipal administration is playing an effective role owing to the 74th Constitutional Amendment”. Examine.

Far reaching changes have been brought about for both municipal Government and Panchayati Raj Institutions through the two Constitutional Amendments: the Seventy-third (73rd) Constitutional Amendment Act, 1992 for Panchayati Raj, and the seventy-fourth (74th) Constitutional Amendment Act, 1992 for Municipal Bodies.

The Constitution of India provides for the constitution of three types of institutions of Urban Local Self-Government. These are Municipal Corporations in larger urban areas, Municipal Councils in urban settlements, and Nagar Panchayats in “transitional” areas, which are neither fully urban nor fully rural. In addition, it provides for decentralisation of municipal administration by constituting Ward Committees in territorial areas of such municipalities, which has more than three-lakh population.

 

The Ward Committees are to be composed of members of the Municipal Council representing the wards within the jurisdiction and one of the elected representatives from within the wards is to be appointed as its Chairperson. But the constitution gives discretion to the State Government to decide the composition.

Another important provision of the Constitution Amendment pertains to the municipal authorities, right to exist. It gives a term of five years, to the municipalities and if at all they have to be dissolved, they must be given an opportunity of being heard. Even if they have to be dissolved because of any irregularity, fresh elections are to be held within six months. This prevents the phenomenon of prolonged supersession or years together

 

Empowerment of weaker sections of society and women is one of the substantive provisions of the Constitution Amendment. With a view to empowering the scheduled castes and tribes as well women, it provides for the reservation of seats in the Council. Besides such reservations, the most important provision of the Constitution Amendment is empowerment of women for which one-third of the total seats are to be reserved

To keep the municipal elections out of the direct control of the State Government, and to ensure free and fair elections to the municipal bodies, the Constitution Amendment has provided for an independent State Election Commission (SEC) consisting of an Election Commissioner to be appointed by the Governor.

 

The most important feature of the Seventy-Fourth Constitutional Amendment, in financial sphere, is the mandatory constitution of Finance Commission by the State Government once in every five years. The State Finance Commission is to make recommendations regarding the principles to govern sharing of the State taxes, fees etc. between the State Government and the Municipalities; and also its distribution among the municipalities. The commission also has to suggest the principles for determination of taxes and fees to be assigned to them and the grants-in-aid to be given to the municipal authorities out of the consolidated fund of the State. It also has the mandate to suggest ways and means of improving the financial position of the municipal authorities.

 

Moreover, the need for non-plan funds of the Municipalities is now to be looked by the Union Finance Commission as well. Federal transfers will now be available also for the municipal authorities. This is an amendment of far reaching importance.

The Constitutional Amendment provides for setting up of the District Planning Committee to consolidate the plans prepared by the Municipalities and the Panchayats within the district: and to prepare a draft development plan for the district as a whole. The municipalities are to be represented on it. Plans so prepared are to be forwarded by the Chairperson of the Planning Committees to the State government. Similarly, Metropolitan Planning Committees are to be set up in the metropolitan areas on which the municipal authorities are to be represented.

 

The 74th Constitutional Amendment is a landmark legislation that, for the first time, accords constitutional status to the Municipal Government and provides for broader social participation in local councils, people’s involvement in civic development, and enlargement of functional domain by inserting the Twelfth Schedule, continuity through regular elections and regular funds flow from the higher level Governments. The other important dimension is constitutional recognition of micro-level planning coordinated by the District Planning Committee. These are the brighter aspects of the Amendment.

There are, however, the greyer areas as well. It has missed a valuable opportunity to specify the functions and also the sources of local revenues. This would have prevented the State encroachment into these spheres.

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