Audit covering 2015 to 2020: Urban bodies lack in power, resources, finds CAG

The audit report, covering the period between April 2015 and March 2020, found “deficiencies in provisioning and functioning of institutional mechanism of ULBs”.

“Out of 15 functions fully and one function partially stated to have been devolved, ULBs were solely responsible for only one function; had no role in one function; had limited role in eleven functions; were mere implementing agencies in two functions; and in respect of one function, they had a dual role with Government Departments. This defeated the purpose of the 74th Constitutional Amendment Act. Out of the total 707 ULBs, elections were held for only 652 ULBs during 2017. Thus, the mandate of the 74th Constitutional Amendment Act to empower ULBs with the democratically elected body is not getting fulfilled at the initial level itself,” the report said.

Only one function — construction, operation, and maintenance of crematoriums and burial grounds — was fully under the control of ULBs. The regulation of land use and planning for economic and social development were the functions not yet devolved to the ULBs, the report stated.

Out of the total 707 ULBs in the state — 17 Nagar Nigams (NN), 199 Nagar Palika Parishad (NPP), and 491 Nagar Panchayats (NP) — the CAG test checked 21 NPPs and 25 NPs. It found that only 48 per cent of NPPs and 44 per cent of NPs were performing the function of approving building plans.

Out of those, the CAG found that 50 per cent of NPPs and 90 per cent of NPs were doing so
without framing the required building by-laws.

“Further, none of these ULBs had monitored the compliance of the terms and conditions of the approved plans,” the report said.

The report said the Urban Development Department’s reply had been silent on the reason for the delay in delimitation and reservation of seats, which led to a five-month delay in the elections to 653 ULBs in 2017.

The audit found that yearly development plans and annual budget estimates were not prepared in any of the test-checked 46 ULBs.

The ULBs were also found to have a minimal base of revenue and forced to rely on grants from the Centre or the state government. “Of the total revenue of Rs 57,108.47 crore from 2015 to 2020, the ULBs’ own revenue was Rs 9,230.84 crore… No compensation was provided to ULBs on account of subsumed taxes under the GST. ULBs were not proactive in the imposition and realisation of municipal taxes as many test-checked ULBs did not impose mandatory house tax and water tax,” the report said.

The CAG found deficiencies in basic municipal services, with 65 out of the 707 ULBs not having pipe drinking water supply.

“Further, the audit observed that none of the test-checked ULBs provided water supply services according to the norms of SLB [service level benchmarks],” the report said.

The CAG found that the role of ULBs implementing Centrally and State-sponsored schemes like Swachh Bharat Mission was minimal, as funds were routed through state government agencies.

The report said there was a shortfall in human resources to the tune of 34.33 per cent in centralised services, 29.95 per cent in non-centralised services and 43.06 per cent in sanitation services as in March 2020.

“The state government did not devolve adequate manpower to the ULBs. The ULBs did not have any powers over the staff of centralised services. The ULBs also lack autonomy in management of affairs related with the staff of non-centralised services. The powers of ULBs in respect of recruitment of staff under sanitation services was also restricted by the state government,” the report said.

The CAG recommended that the state government devolve all functions and responsibilities to ULBs under the 12th Schedule of the Constitution, which deals with powers and functions of municipalities. It also recommended that the state government give adequate powers to the ULBs over recruitment of staff.