74th Constitutional Amendment

Subject: Polity

Context:

The pandemic has shown bad state of urban local bodies, without enough power and funds.

Concept:

• This Act has added a new Part IX-A to the Constitution of India. It is entitled ‘The Municipalities and consists of provisions from Articles 243-P to 243-ZG.
• In addition, the act has also added a new Twelfth Schedule to the Constitution. This schedule contains eighteen functional items of municipalities. It deals with Article 243-W.
• The act gave constitutional status to the municipalities. It has brought them under the purview of justiciable part of the Constitution.
• The act aims at revitalizing and strengthening the urban governments so that they function effectively as units of local government.
• The salient features of the act are:
• Three Types of Municipalities The act provides for the constitution of the following three types of municipalities in every state : nagar panchayat, municipal council and municipal corporation
• Composition: All the members of a municipality shall be elected directly by the people of the municipal area. For this purpose, each municipal area shall be divided into territorial constituencies to be known as wards. The state legislature may provide the manner of election of the chairperson of a municipality.
• Reservation of Seats :The act provides for the reservation of seats for the scheduled castes and the scheduled tribes in every municipality in proportion of their population to the total population in the municipal area. Further, it provides for the reservation of not less than one-third of the total number of seats for women.
• Duration of Municipalities: The act provides for a five-year term of office for every municipality. However, it can be dissolved before the completion of its term.
• State Election Commission: The superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the municipalities shall be vested in the state election commission.
• Finance Commission The finance commission (which is constituted for the panchayats) shall also, for every five years, review the financial position of municipalities and make recommendation to the governor as to:

1. The principles that should govern: (a) The distribution between the state and the municipalities, the net proceeds of the taxes, duties, tolls and fees levied by the state. (b) The determination of the taxes, duties, tolls and fees that may be assigned to the municipalities. (c) The grants-in-aid to the municipalities from the consolidated fund of the state.
2. The measures needed to improve the financial position of the municipalities.
3. Any other matter referred to it by the governor in the interests of sound finance of municipalities.

• District Planning Committee: Every state shall constitute at the district level, a district planning committee to consolidate the plans prepared by panchayats and municipalities in the district, and to prepare a draft development plan for the district as a whole.