Challenges in Urban Infrastructure and Governance

Urban infrastructure is under significant strain due to inadequate urban planning, leading to problems such as waterlogging, traffic congestion, and pollution. The responsibility falls on Urban Local Bodies (ULBs), which are primary governing institutions tasked with implementing policies at the ground level.

Constitutional Provisions and Implementation

• ULBs were granted constitutional status under the 74th Constitutional Amendment Act (CAA) of 1992.
• The 12th Schedule of this amendment devolved 18 functions to ULBs, including urban planning and infrastructure maintenance.
• The performance audit by the Comptroller and Auditor General (CAG) in 2024 revealed that only about four functions are fully under ULBs' control, with state governments interfering frequently.

Issues of Autonomy and Human Resources

• ULBs lack autonomy in recruitment decisions, with state governments underestimating personnel needs.
• Example: Shimla Municipal Corporation needed 720 personnel but was sanctioned only 20 new posts.
• One-third of posts remain vacant across 18 states, hindering effective functioning.

Institutional and Electoral Issues

• Provisions for State Election Commissions (SECs), District Planning Committees (DPCs), and Metropolitan Planning Committees (MPCs) are neglected.
• 61% of ULBs in 17 states had no elected council, with direct mayoral elections held in only five states.

Financial Challenges

• Delays in State Finance Commissions (SFCs) impact fiscal transfers to ULBs.
• State governments often don't release the full amount recommended by SFCs, resulting in a ₹1,606 crore shortfall across 15 states.
• ULBs lack control over property tax rates, hindering financial independence.
• 11 states reported a 42% expenditure-revenue gap, with only 29% of funds allocated for development activities.

Recommendations for Empowering ULBs

To avert the urban crisis, genuine empowerment of ULBs is necessary:

• Adherence to the 74th Amendment to grant ULBs autonomy.
• Strengthen SECs for regular elections and accountability.
• Functional DPCs and MPCs are needed, with timely SFC constitutions.
• ULBs should have autonomy over workforce recruitment to ensure adequate manpower for development projects.

Without these reforms, urban centers will continue to face decline, failing to realize their potential as centers of productivity and quality living.