Q.3. “The states in India seem reluctant to empower urban local bodies both functionally and financially.” Comment. [UPSC 2023 GS P-2]

The statement reflects a significant challenge in the governance of urban areas in India. Despite the 74th Constitutional Amendment Act of 1992, which aimed to strengthen the democratic decentralization by granting constitutional status to urban local bodies (ULBs), there has been a noticeable reluctance among states to fully empower them. This hesitancy is evident in several ways:

• Financial Constraints: ULBs are heavily reliant on state grants and have limited sources of revenue, with property tax constituting about 60% of their income. The irregular formation of State Finance Commissions and the conditional nature of grants further restrict their financial autonomy.
• Functional Overlap: States are mandated to devolve 18 functions to ULBs, but often these responsibilities are carried out by parastatal agencies, undermining the autonomy of ULBs.
• Political Considerations: There is a tendency among state governments to view ULBs as potential rivals, leading to a reluctance in devolving power which could diminish their control over urban areas.
• Administrative Hurdles: The appointment of mayors with limited powers, the overshadowing role of Municipal Commissioners, and the lack of a dedicated cadre for local self-government are some of the administrative challenges that impede the empowerment of ULBs.

However, it’s not all bleak. Some states are making strides in empowering ULBs by focusing on capacity building, providing financial autonomy, and ensuring political representation for women. Initiatives like the Smart Cities Mission and AMRUT Mission also indicate a move towards devolving more functions and resources to ULBs.

In conclusion, while there is a reluctance on the part of some states to empower ULBs functionally and financially, there are also examples of progressive steps being taken. Addressing these challenges is crucial for effective urban governance and the realization of sustainable development goals in India’s rapidly growing cities and towns.