Q. “The states in India seem reluctant to empower urban local bodies both functionally as well as financially.” Comment.

Model Answer: 

Urban Local Bodies

The empowerment of urban local bodies (ULBs) in India, as envisioned by the 74th Constitutional Amendment Act of 1992, faces significant challenges due to states’ reluctance to devolve functional and financial powers. This reluctance manifests in several ways:

1. Incomplete functional devolution: Many states have not fully transferred the 18 functions outlined in the Twelfth Schedule to ULBs.

2. Limited financial autonomy: ULBs’ own revenue sources typically account for only 30-35% of their total revenue, indicating high dependence on state and central transfers.

3. Weak decision-making authority: Key urban governance areas often remain under state control, limiting ULBs’ ability to address local issues effectively.

4. Irregular fund transfers: State Finance Commission recommendations are often not implemented fully, leading to unpredictable and insufficient financial resources for ULBs.

5. Capacity constraints: Many ULBs lack the technical and managerial capacity to handle increased responsibilities, which states cite as a reason for withholding powers.

Several factors contribute to the states’ reluctance to empower ULBs:

1. Political considerations: State-level politicians often view strong ULBs as potential competitors for power and influence, leading to a reluctance to devolve authority.

2. Administrative inertia: The existing bureaucratic structure at the state level resists changes that could diminish its control over urban affairs.

3. Financial implications: Empowering ULBs financially might reduce the states’ control over resource allocation and potentially impact their own fiscal space.

4. Capacity concerns: Many states cite the lack of technical and managerial capacity in ULBs as a reason for withholding powers.

The implications of this state reluctance are significant for urban governance and development:

1. Ineffective urban planning: Without adequate powers, ULBs struggle to create and implement comprehensive urban development plans.

2. Poor service delivery: Limited finances and functions result in substandard provision of essential urban services.

3. Reduced accountability: The disconnect between local needs and decision-making authority weakens democratic accountability at the local level.

4. Stunted economic growth: Inadequate urban infrastructure and services hinder cities’ potential as engines of economic growth.

5. Increased urban disparities: The inability to address local issues effectively can exacerbate socio-economic inequalities within urban areas.

Addressing this issue requires a multi-faceted approach:

1. Legislative reforms: Strengthen the constitutional provisions for devolution of powers to ULBs.

2. Financial empowerment: Expand ULBs’ revenue-raising powers and ensure timely implementation of State Finance Commission recommendations.

3. Capacity building: Invest in enhancing the technical and managerial capabilities of ULB officials.

4. Performance-linked incentives: Introduce mechanisms to reward states that effectively empower their ULBs.

5. Promote participatory governance: Encourage citizen engagement in urban governance to create bottom-up pressure for reform.

In conclusion, overcoming states’ reluctance to empower ULBs is crucial for realizing the vision of effective urban governance set forth by the 74th Amendment. The path forward lies in balancing state interests with the imperative of strong, autonomous urban local bodies to ensure sustainable urban development in India.