India's Urbanization and Local Governance Challenges

India is experiencing rapid urbanization, with expectations that nearly 60% of the population, approximately 800 million people, will reside in cities and towns by 2050. However, the economic benefits of this transition are not being fully realized, and urban local bodies are struggling to function as effective democratic entities.

Issues with Democratic Processes in Urban Local Bodies

• Empowered and accountable local governments are essential for well-functioning cities.
• Regular elections are crucial for empowerment and legitimacy, yet delays are common.
• Examples include: 
  • Maharashtra: Elections to major urban bodies, such as the Brihanmumbai Municipal Corporation, have been delayed for nearly four years.
  • Karnataka: Bengaluru's civic body elections have been postponed since 2020, with the last elections held in 2015.
  • The average delay in municipal elections after council terms expired was 22 months as of 2020-21.

Challenges in Rural Local Bodies

• Situation in rural local bodies (RLBs) is somewhat better but still problematic.
• Election delays are observed in: 
  • Block and zilla panchayats in Maharashtra and Karnataka.
  • Gram panchayats in Tamil Nadu.
• Delayed elections hinder development and governance as RLBs need to be duly constituted for Finance Commission grants.

Constitutional Provisions and Their Violation

• The 73rd and 74th Constitutional Amendment Acts aimed to establish democratic decentralization.
• Articles 243E and 243U mandate elections be held before the end of their term or within six months of dissolution.
• Articles 243K and 243ZA empower State Election Commissions (SECs) to oversee elections.
• SECs are systematically weakened, leading to routine flouting of these provisions.
• The Supreme Court has ruled that SECs have powers akin to the Election Commission of India, but delays continue.

Financial Disempowerment of Local Bodies

• Local bodies lack financial autonomy and are heavily dependent on state transfers.
• Municipal corporations generate only 0.6% of GDP in revenues (2023-24).
• Panchayats derive a mere 1% of their revenues from their own sources.
• Delayed elections undermine the legitimacy and trust in representative democracy.
• Weak finances limit capacity and service delivery.

The Need for Empowerment of Local Bodies

Despite state governments citing federalism to resist central overreach, local governments require similar autonomy. Local bodies are crucial for providing basic services and can drive growth and development. Therefore, political and financial empowerment of local bodies is essential. Observations from the Sixteenth Finance Commission on these issues will be noteworthy.