Local Self Government, Urban Government, 73rd and 74th Constitutional amendments, Contemporary Challenges

Local Self Government refers to the governance of local areas by elected representatives who are responsible for managing the affairs of the community. It operates at the grassroots level and is essential to a democratic political system, allowing citizens to participate directly in the decision-making process that affects their daily lives. In India, the system of local self-government is constitutionally recognized through the 73rd and 74th Constitutional Amendments of 1992, which established the Panchayati Raj Institutions (PRIs) for rural areas and Urban Local Bodies (ULBs) like Municipalities for urban regions. These institutions are empowered to plan and implement developmental programs, maintain public amenities, and manage local resources.

The primary aim of local self-government is to promote decentralization, participatory governance, accountability, and transparency. It ensures that governance is brought closer to the people, enhancing administrative efficiency and social justice. Local bodies address key issues such as sanitation, water supply, housing, rural development, and urban planning. They also ensure the inclusion of marginalized groups through reservations for Scheduled Castes, Scheduled Tribes, and women. With regular elections, financial grants, and autonomy, local self-governments act as vehicles of democratic empowerment and grassroots development. This structure strengthens democracy by making governance more responsive, inclusive, and need-based, ultimately contributing to national integration and sustainable growth.

Urban Government

Urban Government refers to the system of local self-governance in cities and towns, aimed at managing the administration, development, and public services of urban areas. It operates through Urban Local Bodies (ULBs), which include Municipal Corporations, Municipal Councils, and Nagar Panchayats, depending on the population and size of the area. The concept of Urban Government in India gained constitutional recognition with the 74th Constitutional Amendment Act, 1992, which provided a framework for democratic decentralization in urban areas. It ensures that governance and planning are carried out by elected representatives who are closer to the local population and better understand the unique needs of urban communities.

Urban governments are responsible for a wide range of functions such as urban planning, water supply, waste management, sanitation, street lighting, housing, health, education, transport, and environmental protection. These bodies play a vital role in delivering civic services, managing urban infrastructure, and implementing central and state-sponsored schemes like the Smart Cities Mission, AMRUT, and PMAY-Urban. They generate revenue through property tax, user charges, grants, and loans. Urban governments also provide platforms for public participation, ensure inclusivity through reservations for SCs, STs, and women, and enhance administrative efficiency by localizing decision-making. Thus, urban governments act as essential pillars of democratic governance and sustainable urban development in India.

73^rd and 74^th Constitutional amendments, Contemporary Challenges

• Incomplete Devolution of Powers

While the 73rd (Panchayati Raj) and 74th (Urban Local Bodies) Amendments mandated a three-tier governance system, many states have not fully transferred the 29 subjects listed in the 11th and 12th Schedules. Key areas like agriculture, health, and education remain under state control, weakening local governance.

• Financial Dependence on States

Local bodies rely heavily on state grants due to limited taxation powers and inefficient collection of local revenues (property taxes, user charges). Many states delay funds or impose restrictive conditions, crippling grassroots development initiatives.

• Bureaucratic Resistance & Political Interference

State-appointed officials often override elected representatives in decision-making. Frequent dissolution of elected bodies, delayed elections, and undue interference by MLAs/MPs undermine autonomy.

• Weak Accountability & Corruption

Lack of transparency in fund utilization and contractor-led projects enable embezzlement. Social audits and RTI mechanisms remain underused due to political pressure and lack of awareness.

• Marginalization of Reserved Categories

Despite quotas for SCs/STs and women, proxy governance (by dominant castes or male relatives) persists. Genuine participation of marginalized groups remains a challenge.

• Urban-Rural Disparities

The 74th Amendment’s implementation lags behind the 73rd, with municipal bodies facing greater politicization and funding shortages. Rapid urbanization outpaces institutional capacity.

• Digital Divide & Capacity Gaps

E-governance initiatives fail due to low digital literacy among representatives. Training programs are sporadic, leaving leaders ill-equipped for planning and budgeting.