This is the second post in the series of posts on the Municipal Finance Scenario in India. In this post, we discuss the functions devolved to ULBs as per the 74th Constitutional Amendment. We also discuss briefly the capabilities of ULBs to carry out these functions successfully.
The 74th Constitutional Amendment Act (CAA) incorporated provisions for devolution of certain powers and functions to Urban Local Bodies (ULBs). Section 243W of the 74th CAA aimed at devolving the responsibility for local economic development and social justice. The Twelfth Schedule of the Constitution lists the specific functions under economic and social development that are best devolved to ULBs.
Given the importance of functions and responsibilities entrusted to the local self-governments, the issues relating institutional structure of ULBs gain tremendous significance. These structures are not uniform across states or even metropolitan (or district) areas, and are plagued with political and administrative problems. These shortcomings make the successful execution of devolved functions a challenging task for the local bodies.
This post first appeared in our Financing Small Cities Blog.
