Significance of empowering local bodies for effective urban governance in India

In August-September 2024, heavy rains severely affected cities across Gujarat. In Vadodara, the downpour caused flooding, power outages, and streets filled with waste, effectively crippling the city. While residents criticised the Vadodara Municipal Corporation for its response, the local body worked tirelessly to address the damages caused by the rains. 

The incident highlights the vital role of urban local bodies in managing our cities and their present day challenges.

Urban local bodies

Urban local bodies (ULBs), i.e. Municipal Corporations, Municipalities, or Nagar Panchayats are the fundamental unit of urban governance in our cities. They are the first point of contact for citizens and are responsible for providing essential services such as waste management, sanitation, and urban planning.

Historically, pre-colonial Indian cities had informal governance structures that varied based on the city’s primary activities, whether as trading hubs or religious (temple) towns. In the colonial era, the British established city level institutions such as improvement trusts to deal with the city’s sanitation problems. 

The improvement trusts were tasked with the responsibility of cleaning up the city and ensuring that epidemics were prevented. For example, these trusts in Bombay or Calcutta were tasked to handle diseases like the plague by planning for wider streets, improving drainage systems and decongesting overcrowded housing. 

The first municipal body was established in Madras in 1687, followed by Bombay and Calcutta. In 1882, Lord Ripon (often called as father of local self-government in India) introduced the resolution for local-self governments, thereby laying the foundations of a democratically elected municipal government to manage cities. 

By 1935, Government of India Acts recognised the importance of local self governments and they were treated under provincial or state subjects. 

Devolution of powers

Many of India’s freedom fighters began their political careers in municipal politics. For example, Sardar Vallabhbhai Patel was a municipal councillor in Ahmedabad. After independence, municipal corporations continued to evolve but faced major obstacles with a growing urban population and limited infrastructure. They were heavily reliant on their respective state governments for financial and operational support.

With the introduction of the 74th Constitutional Amendment Act in 1992 (the law came into effect in June 1993), ULBs gained constitutional recognition as the third tier of governance, alongside the central and state governments. 

The Part IX-A of the Indian constitution details the compositions, roles and responsibilities of these ULBs and grants them powers to manage a range of services, from urban planning and land use to public health and waste management. 

The 12th Schedule of the constitution specifies 18 functions that are devolved to these ULBs. The amendment also mandated elections every five years, with municipal councillors elected from local constituencies (wards). While the elected mayor serves as the ceremonial head, real executive power rests with the municipal commissioner, a state-appointed bureaucrat.

Limited financial resources

However, municipal bodies are stretched thin, managing everything from waste collection to city planning. ULBs have insufficient resources and limited personnel to address a wide variety of complex urban problems. The main challenges that hamper the effectiveness of ULBs are their limited financial resources, constrained political autonomy and low state capacity.

ULBs struggle with their finances. A major source of municipal revenue is property taxes, with remaining funds coming from the state government. While ULBs can raise revenue through bonds or other securities (such as the Ahmedabad Municipal Bonds in 1994), lack of administrative and technical expertise remains a problem. 

They also charge low user fees such as parking charges or commercial taxes, especially when many of these activities happen in the prime areas of the city.

Political autonomy

As mentioned earlier, ULBs have an elected head and an executive head who is appointed by state governments. The arrangement entrusts more executive powers to municipal commissioners than mayor. This often leads to administrative overlaps, which reportedly delay decision-making, especially at a time of crisis.

Moreover, state governments, due to their control over funding, exert significant influence over city affairs. Recently, the Bihar Municipality (Amendment) Bill, 2024 was passed amidst considerable opposition. The bill seeks to curtail the powers of elected councillors, particularly in bringing no-confidence motions against mayors. 

This move paves the way for even greater involvement by state governments in the day-to-day functioning of ULBs, further diminishing the autonomy of local governance. Such legislative changes seemingly reinforce the power imbalance between state and local governments.

Shortage of personnel and expertise

In addition, the low state capacity of ULBs dampens their service delivery. A study by NITI Aayog and the Ministry of Housing and Urban Affairs shows that there is one planner for 75,000 urban populations which is a low figure compared to other local governments globally. There are only 5,000 qualified town planners, and Indian cities would require at least 3 lakh town planners by 2031. The shortage of personnel and expertise makes urban management an arduous task for the ULBs.

For Indian cities to respond effectively to urban problems, municipal governance reforms are needed. In many cities around the world, city governments have significant power in shaping their urban environments. For example, the mayors in London or New York have enormous power and influence their cities’ policies on important subjects such as housing, transportation, and infrastructure. 

For example, Transport for London (TfL) comes under the direct purview of the Mayor of London. TfL is responsible for improving mobility and accessibility in London. It is also in charge of implementing the Mayor’s sustainable transport plan whereby 80 per cent of trips in London shall be on foot, cycle or public transport by 2040.

The way ahead

Greater financial autonomy could enable ULBs to generate revenue and reduce dependence on state government funding. These funds could be raised through pro-market measures such as bonds and securities or by levying user charges such as congestion charges, parking fees, etc.

Innovative financial plans with diverse sources of income allow ULBs to be more flexible and creative to address their problems. ULBs could also create participatory budgets whereby city residents can participate in deciding how their taxes can be effectively utilised. Many cities around the world dedicate a small percentage of their budgets to participatory budgeting and city residents who are more aware of the local problems use these budgets to address them.

Lastly, ULBs may seek to upgrade their technical expertise and state capacity by bringing in experts and personnel for improved service delivery. Several problems in cities, especially the ones such as urban floods or urban heat island effects, have no ready solutions.

To address these problems, there needs to be a decentralised and situated approach. According to the principle of subsidiarity, local issues should be managed at the local level, meaning that ULBs are best suited to address city-specific challenges, rather than relying on state or central governments.

Post Read Questions

How did the introduction of the 74th Constitutional Amendment Act (1992) change urban governance in India, and what powers and responsibilities were devolved to urban local bodies?

Evaluate the key challenges faced by urban local bodies. What steps can be taken to further empower these local bodies to address complex urban challenges?

How does contemporary urbanism advocate for the integration of diverse modes of urban planning and management? Discuss this in relation to the current trends and challenges in urban development in India.

How can municipal governance reforms help cities respond more effectively to urban challenges? Evaluate with examples from other countries. 

(Jacob Baby is a doctoral researcher in Concordia University, Canada, and explores matters related to urban planning in India.)

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