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UNIT 19 MUNICIPAL ADMINISTRATION Structure Objectives Introduction Meaning and Nature of Local Self-Government Urbanisation in India Seventy-Fourth Constitutional Amendment Urban Local Self-Government Urban Development Authorities Administrative Structure Finance State and Local Self-Government Let Us Sum Up Key Words References and Further Readings Answers to Check Your Progress Exercises 19.0 OBJECTIVES After studying this Unit you should be able to: Describe tlie trends in urbanisation in India; Discuss the composition of councils, committee systems in Municipal Corporation and Municipalities in India; Explain the role of Political Executives and Commissioners; Examine the status of municipal personnel and finances; and : Highlight the State-Urban local body relations. .- 19.1 INTRODUCTION In the developing countries, the Colonial Governments during the period of their domination established several statutory institutions. Among them Urban Local Self- Government institutions are most prominent. Ever since the establishment of Madras (Chennai) Municipal Corporation four centuries ago, there has been a , proliferation of municipal bodies to manage the town and city. Lord Rippon's resolution in 1882 sought to place these Urban Local Government institutions on a sound organisational footing. They have been working with different degrees of success in administering the city. In this Unit, we shall examine the nature of urbanisation in India, different types of urban local bodies, administrative structure, role of bureaucracy, municipal finance, control over local bodies and their problem areas. 19.2 MEANING AND NATURE OF LOCAL SELF-GOVERNMENT Local Government or Local Self-Government is the Government of a locality. It is not the area of the State Government. It ik,an autonomous unit like the State or Central Government. It is the local will, not tlie will of the Centre or State, which is reflected through the Local Government. National Government is for the whole nation; hence it is big Government. By contrast, Local Government looks after the 'local' functions like water supply, local streets, garbage collection and disposal and similar other local heeds. It is small but important Government for a local area, which can be a town or a group of villages.

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  • UNIT 19 MUNICIPAL ADMINISTRATION Structure

    Objectives Introduction Meaning and Nature of Local Self-Government Urbanisation in India Seventy-Fourth Constitutional Amendment Urban Local Self-Government Urban Development Authorities Administrative Structure Finance State and Local Self-Government Let Us Sum Up Key Words References and Further Readings Answers to Check Your Progress Exercises

    19.0 OBJECTIVES

    After studying this Unit you should be able to:

    Describe tlie trends in urbanisation in India; Discuss the composition of councils, committee systems in Municipal Corporation and Municipalities in India; Explain the role of Political Executives and Commissioners; Examine the status of municipal personnel and finances; and :

    Highlight the State-Urban local body relations. .-

    19.1 INTRODUCTION In the developing countries, the Colonial Governments during the period of their domination established several statutory institutions. Among them Urban Local Self- Government institutions are most prominent. Ever since the establishment of Madras (Chennai) Municipal Corporation four centuries ago, there has been a

    , proliferation of municipal bodies to manage the town and city. Lord Rippon's resolution in 1882 sought to place these Urban Local Government institutions on a sound organisational footing. They have been working with different degrees of success in administering the city. In this Unit, we shall examine the nature of urbanisation in India, different types of urban local bodies, administrative structure, role of bureaucracy, municipal finance, control over local bodies and their problem areas.

    19.2 MEANING AND NATURE OF LOCAL SELF-GOVERNMENT

    Local Government or Local Self-Government is the Government of a locality. It is not the area of the State Government. It ik,an autonomous unit like the State or Central Government. It is the local will, not tlie will of the Centre or State, which is reflected through the Local Government. National Government is for the whole nation; hence it is big Government. By contrast, Local Government looks after the 'local' functions like water supply, local streets, garbage collection and disposal and similar other local heeds. It is small but important Government for a local area, which can be a town or a group of villages.

  • The adjective 'local' stands for a small geographical area. Also, it means intimate Municipal Administration social relations of the people in a limited geographical space. The other word, 'Government' stands for a public authority. In a democracy, Government may be at national level, state level and the Regional Government at the regional level. Below the regional level, there is the 'local' level where 'Government' can be legally constituted. This means, there are many Local Government units below the National and Regional Governments, which exercise authority and discharge a number of important local functions on the basis of statutory decentralisation.

    r Local Self-Government lias three important features: a) it is elected by the people of tlie local area;

    I

    I b) it has the power to levy taxes and other fees, like any other Government; and c) its functions and activities are clearly laid down in law so that within the scheme

    of legislation Local Self-Government enjoys a degree of autonomy. Thus, the Local Self-Government is a statutorily constituted democratic Government with a degree of autonomy exercising jurisdiction over a limited geographical area. The Local Self-Government in a liberal democracy marks for decentralisation of power. So, it is considered as a means of enriching and deepening democracy by extending freedom of action to many localities. It was the view of John Stuart Mill that Local Government creates conditions for popular participation in governance, and in this process the system has great educative value for good citizenship in a country.

    Forms of Local Self-Government

    There are two common forms of Local Self-Government, that is Urban Local Self- Government and Rural Local Self-Government. We have Panchayati Raj Institution in the rural areas. In the urban areas - in the cities and towns -there are Municipal Corporations and Municipalities. According to the 74th Constitutional Amendment tlie Urban- Local Self-Government has been classified into three types, that is, Municipal Corporation, Municipal Council and Municipal Committee.

    i

    19.3 URBANISATION IN INDIA An urban area is one, which is formally so declared through the statutory establishment in that area of a municipal body, a notified area or a cantonment by a definite legislation. Thus, there are Municipal Acts in different States under which municipal bodies are set-up by tlie State Governments in specific areas. Cantonment areas are governed by the Central legislation. There can be other areas also that can be declared as 'urban' by the census authorities.

    Tlie urban population, which was around 3 per cent at the beginning of the 19~" I

    century rose to about 10 per cent by the beginning of the 20"' century. Between 1901 and 1921 urban population grew very slowly that is, it rose from 25.6 million to 27.6 million and between 1921 and 1941 population rose to 43.5 million. But after 1941, the growth rate gained greater momentum adding to its urban population. From 1961 onwards there has been a dramatic increase in the urban population of the country. In 1961 the urban population stood at 77.5 millions and by 1981 it had more than doubled to make it 109.6 million constituting about 23.7 per cent of India's total population. On the basis of census calculation it can be said that India's urban population has been rising steadily. In 1971 total urban population in India stood at 109.1 1 million, which rose to 159.46 million in 1981, and 218 million in 199 1. During 197 1-8 1 decade India's urban population increased approximately 5 inillion per annum, or at an average annual growth rate of 3.87 per cent compared to the growth rate of 1.78 per cent for the rural population. In 1991 census, country's total urban population stood at 217.18 inillion and the average annual growth rate between 1981-9.1 was 3.09 per cent. Between 1988 and 2001 the projections

  • Field and Local Administration

    estimate India's urban population to become almost double and from 2001 to 2021 it is expected to double again taking the urban population to more than 600 millions.

    India recorded a population of 1,027,O 15,247 on 1" March 200 1. ?he data indicates that 72.2 per cent persons were recorded in rural areas and remaining 27.8 per cent in urban areas. Urban population growth is supposed to be an indicator of general economic development. Delhi is the most Urbanized State in India with over 93per cent of its population being Urban. Amongst the other major States, the 'most urbanized is Tamil Nadu with 43.86 per cent urban population. Maharashtra has the maximum urban population but is the second most urbanized State with 42.40 per cent Urban Population. Uttar Pradesh contributing nearly 2lper cent to the State's total population, but in terms of urbanisation it ranks twenty fifth in the list. Gujarat is third most urbanized State having 37.35 per cent urban population. The Himachal Pradesh is least urbanized (most Rural) State having 9.79 per cent followed by Bihar 10.47 per cent and Sikkim 1 1.1 per cent.

    In India, lack of employment opportunities in the rural areas has led to city-ward migration of large rural population, which is commonly known as the 'push' factor of urbanisation. The migrants generally choose to settle in large cities where, as a consequence, population increase is not matched by planned infrastructure development. Roads, water supply, housing, drainage and sewerage, transportation facilities - all suffer from short supply in the face of mounting population pressure. Our large cities like Kolkata, Mumbai, Chennai, Delhi etc. are all having large slum population and there is chronic shortage of essential civic services and facilities in these cities.

    There has been a notion that India is an over-urbanized State, because of their substantial increase in population over the years. This thesis is advanced on the ground that there is a mismatch between the levelsi of industrialization and urbanisation. The process of urbanisation is costly and impinges upon the economic growth. The State of infrastructure is poor and is not in a position to take the growing urban pressure.

    19.4 SEVENTYrFOURTH CONSTITUTIONAL AMENDMENT

    Far reaching changes have been brought about for both Municipal Government and Panchayati Raj Institutions through the two Constitutional Amendments: the Seventy-third (73rd) Constitutional Amendment Act, 1992 for Panchayati Raj, and the Seventy-fourth ( ~ 4 ' ~ ) Constitutional Amendment Act, 1992 for Municipal Bodies.

    The Constitution of India now provides for the constitution of three. types of institutions of Urban Local Self-Government. These are Municipal Corporations in larger urban areas, Municipal Councils in urban settlements, and Nagar Panchayats in 'transitional' areas, which are neither fully urban nor fully rural. In addition, it provides for decentralisation of municipal administration by constituting Ward Committees in territorial areas of such municipalities, which have more than three- lakh population.

    Composition

    The Municipal authorities are to be constituted of: the elected representatives who are to be elected from the different electoral wards;

    , the Members of the House of the People and the Legislative Assembly of the State representing constituencies, which are wholly or partly under the municipal area; .

  • the members of the Council of States and the Sate Legislative Council who are registered as electors within the municipal area;

    i chairpersons of the Committees of the municipal authorities; and persons having special knowledge or experience in municipal administration (without right to vote).

    The Ward Committees are to be composed of members of the Municipal Council representing the wards within the jurisdiction and one of the elected representatives from within the wards is to be appointed as its Chairperson. But the constitution gives discretion to the State Government to decide the composition.

    Another important provision of the Constitution Amendment pertains to the municipal authorities, right to exist. It gives a term of five years, to the municipalities and if at all they have to be dissolved, they must be given an opportunity of being heard. Even if they have to be dissolved because of any irregularity, fresh elections are to be held within six months. This prevents the phenomenon of prolonged supersession or years together.

    Empowerment of weaker sections of society and women is one of the substantive provisions of the Constitution Amendment. With a view to empowering the scheduled castes and tribes as well as women, it provides for the reservation of seats in the Council. Besides such reservations, the most important provision of the Constitution Amendment is empowerment of women for which one-third of the total seats are to be reserved. @

    To keep the municipal elections out of the direct control of the State Government, and to ensure free and fair elections to the municipal bodies, the Consti,tution Amendment has provided for an independent State Election Commission (also for Panchayat elections), consisting of an Election Commissioner to be appointed by the Governor.

    The most important feature of the Seventy-Fourth Constitutional Amendment, in financial sphere, in the mandatory constitution of Finance Commission by the State Government is once in every five years. The State Finance Commission is to make recommendations regarding the principles to govern sharing of the State taxes, fees etc. between the State Government and the Municipalities; and also its distribution among the Municipalities. The commission has also to suggest the principles for the determination of taxes and fees to be assigned to them and the grants-in-aid to be given to the municipal authorities out of the consolidated fund of the State. It also has the mandate to suggest ways and means of improving the financial position of the municipal authorities.

    Moreover, the need for non-plan funds of the Municipalities is now to be looked by the Union Finance Commission as well. Federal transfers will now be available also for the municipal authorities. This is an amendment of far reaching importance.

    The Constitution Amendment provides for setting up of the District Planning Committees to consolidate the plans prepared by the Municipalifies and the Panchayats within the district; and to prepare a draft development plan for the district as a whole. The Municipalities are to be represented on it. Plans so prepared are to be forwarded by the Chairperson of the Planning Committee to the State Government. Similarly, Metropolitan Planning Committees are to be set up in the metropolitan areas on which the municipal authorities are to be represented.

    Municipal Administration

    The 74"' Constitution Amendment is a landmark legislation that, for the first time, accords constitutional status to Municipal Government and provides for broader social participation in local councils, people's involvement in civic development, enlargement of functional domain by inserting the Twelfth Schedule, continuity through regular elections and regular funds flow from the higher level Governments. The other important dimension is constitutions! recoy~itiori of micro-levcl planning

  • Field and Local coordinated by the District Planning Committee. These are the brighter aspects of Administration the Amendment.

    There are, however, the grayer areas as well. It has missed a valuable opportunity to specify the functions and also the sources of local revenues. This wouldhave prevented the State encroachment into these spheres.

    19.5 URBAN LOCAL SELF-GOVERNMENT Following the 74"' Constitutional Amendment Act, 1992 Urban Local Self- Government in India has been classified into three types - Municipal Corporations, Municipalities and Nagar Panchayats. We are familiar with the names of the Kolkata Municipal Corporation, Delhi Municipal Corporation and similar other Corporations in our big cities. In the small and medium towns, there are Municipalities that are sometimes called Municipal Boards or Municipal Committees. Where a place is neither fully rural or fully urban, and it is going through a process of urbanisation because of industrialisation or location of big development projects, a notified area committee or a town committee used to be set up as an interim measure. Under the 741h Constitutional Amendment a Nagar Panchayat shall be set up in such 'transitional areas'. Indeed, an urban area, irrespective of its size, needs a local Government for the provision of civic services and facilities such as water supply, garbage clearance, construction and maintenance of roads. These are some of the important services that an Urban Government has to provide to sustain civic life in an area. The Municipal Corporation, Municipal Council and Municipal Committee as per the size of the atea provides these services.

    .i) Municipal Corporation The administration of civic affair? in a city is a challenge. The distinct characteristic of a city is the huge concentration of population within a limited area. The management of civil services therefore, requires an effective organisational structure, adequate finance and efficient personnel. The Municipal Corporation as a form of city Government occupies the top position among the local authorities in India. Normally, the Corporation form of urban Government is found in major cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore, etc.

    Municipal Corporation is established through a special statue, which is passed by the State legislature. In case of Union Territories, they are established through Acts passed by the Parliament. Such legislation may be enacted specially for a particular corporation or for all Corporations in a State, for example the Mumbai and Kolkata Corporations were established through separate legislation. Whereas in Uttar Pradesh and Madhya Pradesh, the State level legislation governs the constitution and working of the Corporation. The Municipal Corporation generally enjoy a greater measure of autonomy than other forms of local Government. In almost all the States, the Municipal Corporations have been assigned numerous functions such as supply of drinking water, electricity, road transport services, public health, education, registration of births and deaths, drainage, construction of public parks, gardens, libraries, etc. These functions are normally divided as obligatory and discretionary.

    In Haryana, there is only one Municipal Corporation (MC) that is in Faridabad with more than 5 lakhs population. MC is constituted for governing the area. It has both elected and nominated (ex-officio) members. MC, Faridabad has at present 24 elected Councilors. Under the amended municipal law of the State, election to the municipal bodies must take place every five years, unless a municipal body is dissolved earlier. The Mayor elected by the members of the Corporation from amongst themselves is the first citizen of the city and presides over the meetings of the city Corporation.