Write down any two important provisions of the 74th Amendment to the Constitution of India.

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Points to Remember:

  • The 74th Amendment Act, 1992, deals with urban local governments in India.
  • It aims to empower municipalities and improve urban governance.
  • Two key provisions are the constitution of Municipalities and the establishment of State Finance Commissions.

Introduction:

The 74th Amendment to the Constitution of India, enacted in 1992, is a landmark legislation that significantly altered the structure and functioning of urban local governments (ULGs) in the country. Prior to this amendment, municipalities lacked constitutional status and their powers were largely dependent on the state governments. The amendment aimed to devolve power and responsibilities to these local bodies, fostering greater democratic participation and efficient urban management. This response will focus on two crucial provisions of the 74th Amendment: the constitution of Municipalities and the establishment of State Finance Commissions.

Body:

1. Constitution of Municipalities (Article 243P):

This provision mandates the constitution of Municipalities in urban areas. It specifies three types of Municipalities: Municipalities, Nagar Panchayats, and Nagar Parishads, depending on the population and other criteria determined by the state legislature. The amendment ensures that these bodies are democratically elected and have a defined structure with a Mayor or Chairperson, a council, and other necessary administrative bodies. This provision aims to:

  • Enhance democratic decentralization: By providing a constitutional basis for ULGs, the amendment ensures their existence and legitimacy, promoting greater participation of citizens in local governance.
  • Improve local governance: A defined structure with elected representatives allows for better planning, implementation, and monitoring of local development projects.
  • Promote accountability: Elected representatives are accountable to the electorate, leading to greater transparency and responsiveness in local governance.

2. Establishment of State Finance Commissions (Article 243Y):

This provision is crucial for the financial autonomy of Municipalities. It mandates the constitution of State Finance Commissions (SFCs) by each state. The SFCs are responsible for reviewing the financial position of Municipalities, making recommendations on the principles governing the distribution of taxes, duties, and grants between the state and the Municipalities, and determining the principles which should govern the grants-in-aid to the Municipalities by the State. This provision aims to:

  • Ensure financial autonomy: By recommending a fair share of state resources to Municipalities, SFCs help ensure that these bodies have the necessary financial resources to perform their functions effectively.
  • Promote equitable distribution of resources: SFCs ensure that resources are distributed fairly among different Municipalities, considering their population, area, and developmental needs.
  • Enhance transparency and accountability in financial management: The recommendations of SFCs bring greater transparency and accountability to the financial dealings of Municipalities.

Conclusion:

The 74th Amendment Act, through the constitution of Municipalities and the establishment of State Finance Commissions, has significantly strengthened urban local governance in India. While challenges remain in terms of effective implementation and resource allocation, these two provisions represent a crucial step towards empowering urban local bodies and promoting participatory democracy at the grassroots level. Moving forward, a focus on capacity building of ULG officials, ensuring timely and adequate funding based on SFC recommendations, and promoting citizen engagement are vital for realizing the full potential of this landmark legislation. This will contribute to holistic urban development, sustainable urban planning, and the strengthening of democratic values enshrined in the Indian Constitution.

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