Introduction
The 74th Constitutional Amendment Act, 1992, was a landmark reform aimed at strengthening urban local governance in India. It provided constitutional status to municipalities and laid the foundation for democratic decentralisation in urban areas. The Act recognized municipalities as the third tier of government and empowered them to function as effective institutions of local self-governance. This answer examines how the amendment has impacted the functioning of municipalities at the grassroots level.
Key Features of the 74th Amendment Act
- Constitutional Recognition: Gave legal backing to urban local bodies (ULBs) such as Nagar Panchayats, Municipal Councils, and Municipal Corporations.
- Three-tier Structure: Classified municipalities based on population and urban characteristics.
- Regular Elections: Mandated elections every five years under the supervision of State Election Commissions.
- Reservation: Provided reservations for Scheduled Castes, Scheduled Tribes, and women (33%) in municipal elections.
- 18 Functions: Listed in the Twelfth Schedule, including urban planning, roads, water supply, sanitation, etc.
- Finance and Planning: Mandated the establishment of State Finance Commissions and District Planning Committees.
Achievements Since the 74th Amendment
1. Strengthening of Urban Democracy
Regular elections and wider representation have strengthened democratic practices in urban areas. Citizens now have a platform to raise local issues and influence decision-making.
2. Increased Participation of Women and Marginalized Groups
The reservation system has led to greater inclusion of women and weaker sections, enhancing their participation in governance.
3. Improved Service Delivery
Many municipalities have improved services in areas such as solid waste management, water supply, and sanitation, especially in larger cities and towns.
4. Enhanced Accountability and Transparency
Decentralised planning and citizen-centric programs like Ward Committees and public grievance systems have improved local accountability.
5. Innovation and Digital Governance
Several municipalities have adopted digital platforms for service delivery, online payments, and grievance redressal under schemes like Smart Cities and AMRUT.
Challenges in Effective Functioning
1. Incomplete Devolution of Powers
Despite constitutional backing, many states have not transferred all 18 functions to municipalities, limiting their effectiveness.
2. Financial Constraints
Municipalities often lack sufficient revenue sources and depend heavily on state and central government grants.
3. Weak Institutional Capacity
Many municipal bodies face shortages of skilled staff, poor infrastructure, and outdated systems.
4. Political and Bureaucratic Control
Excessive control by state governments and bureaucracy undermines the autonomy of elected urban local bodies.
5. Limited Citizen Engagement
In smaller municipalities, awareness and participation of citizens in local governance remain low.
Suggestions for Improvement
- Ensure full devolution of functions, funds, and functionaries (3Fs) to municipalities
- Strengthen urban finance through property tax reforms and own revenue generation
- Invest in capacity building and e-governance tools
- Promote active citizen participation through ward committees and social audits
- Empower mayors and local representatives with more decision-making authority
Conclusion
The 74th Constitutional Amendment Act has provided a robust framework for urban local self-governance in India. While many municipalities have made progress, several challenges still hinder their ability to function as fully empowered grassroots institutions. With genuine political will, administrative reforms, and citizen engagement, municipalities can become engines of inclusive and sustainable urban development.