CAG releases Compendium of Performance Audits on the implementation of the 74th Constitutional Amendment Act (CAA) 1992 | Current Affairs | Vision IAS
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Compendium encapsulates key findings from Performance Audits undertaken by the Comptroller and Auditor General (CAG) on implementation of 74th CAA in 18 states

  • 74th CAA introduced Part IXA to the Constitution of India, providing constitutional status to Urban Local Self-Governments (ULSGs). 
    • It authorized State Legislatures to enact laws to endow local bodies with powers and authority to enable them to function as institutions of Self-Government.
    • It introduced Twelfth Schedule to the Constitution, enumerating 18 specific functions to be devolved to ULSGs.

Key finding of Report

  • Autonomy: 17 functions in Twelfth Schedule are devolved to ULSGs, by law, however, only 4 functions are effectively devolved with complete autonomy. 
  • Women: 6 out of 14 States reserve 50% of their City Council seats for women, over the constitutional mandate of 33% reservation. 
  • ULSGs Finances: On average, only 32% of total revenue of ULSGs is their own revenue, with the rest coming from the Union and state governments.
    • ULSGs are facing a 42% gap between their resources and expenditure and only 29% of their expenditure goes towards programmatic and development work.
  • Functionaries: Average staff vacancy against sanctioned strength in ULBs is 37%

Recommendations to ensure efficacy of 74th CAA

  • Take action to ensure that decentralization turns into a reality, involving ULSGs in critical functions such as planning, regulation etc.
  • Strengthen State Election Commissions for timely municipal elections.
  • Improve financial sustainability of ULSGs through enhancing their tax collection capacity.
  • Establish a robust workforce management system in ULSGs for filling up the vacant posts.
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