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Mar 24, 2025 9:45 pm
Q. 74th Constitutional Amendment, which aims to empower Urban Local Bodies (ULBs) to effectively manage urban areas, has not succeeded in fulfilling its intended role, Examine (150 words, 10 marks, 2 pages, 7 minutes)
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Mar 24, 2025 9:45 pm
Introduction: The 74th Constitutional Amendment Act, 1992, aimed to strengthen and empower Urban Local Bodies (ULBs) to function as effective institutions of local self-government. Despite its progressive framework, several challenges have impeded its success in fulfilling its intended role.
Objectives of the 74th Amendment
- Decentralisation of Power: It sought to delegate powers and responsibilities to ULBs.
- Democratic Representation: Ensured regular elections and representation of Scheduled Castes, Scheduled Tribes, and women.
- Financial Autonomy: Empowered ULBs to levy and collect taxes, receive funds, and manage resources.
- Functional Autonomy: Specified 18 functional items to be transferred to ULBs under the Twelfth Schedule.
- Accountability and Transparency: Mandated the creation of State Finance Commissions (SFCs) and District Planning Committees (DPCs).
Achievements
- Institutional Framework: Established a formal structure for urban governance.
- Increased Participation: Enhanced representation and participation of marginalised sections and women.
- Regular Elections: Institutionalised regular elections in urban areas.
Challenges and Limitations
- Incomplete Devolution of Powers: States have been reluctant to transfer adequate powers and functions to ULBs. Many states have not fully implemented the provisions of the Twelfth Schedule.
- Financial Constraints: ULBs continue to face severe financial limitations. Dependence on state and central grants hampers their financial autonomy.
- Lack of Administrative Capacity: Many ULBs lack the administrative capacity and technical expertise to manage urban affairs efficiently.
- Political Interference: State governments often interfere in the functioning of ULBs, undermining their autonomy.
- Weak SFCs and DPCs: State Finance Commissions and District Planning Committees have not been effective in ensuring financial decentralisation and integrated planning.
- Urbanisation Pressure: Rapid urbanisation has outpaced the capacity of ULBs, leading to inadequate urban infrastructure and services.
- Corruption and Accountability Issues: Instances of corruption and lack of accountability in ULBs affect their efficiency and effectiveness.
Case Studies
- Bangalore: Despite being a major metropolitan city, Bangalore's ULB has struggled with issues of inadequate infrastructure, traffic congestion, and waste management due to lack of funds and administrative inefficiencies.
- Mumbai: The Brihanmumbai Municipal Corporation (BMC) has faced challenges in urban planning and disaster management, especially evident during the monsoon floods, highlighting the need for greater administrative capacity and financial resources.
Way Forward
- Full Implementation: States must ensure the full and effective implementation of the Twelfth Schedule.
- Strengthening SFCs: Empowering State Finance Commissions to ensure timely and adequate financial transfers.
- Capacity Building: Investing in the capacity building of ULBs through training and technological support.
- Financial Reforms: Enhancing the financial autonomy of ULBs through better revenue-generating mechanisms.
- Reducing Political Interference: Ensuring greater political will and reducing interference in the functioning of ULBs.
- Public Participation: Encouraging greater public participation and transparency in urban governance.

