- Prelims: Parliament-Structure, organization and functioning, article 340, tribes, 73rd and 74th amendment etc
- Mains GS Paper II: Parliament- structure, functioning and conduct of Business etc
ARTICLE HIGHLIGHTS
- In December 1992, Parliament passed the 73rd and 74th constitutional amendments, which instituted panchayats and municipalities, respectively.
INSIGHTS ON THE ISSUE
Context
73rd and 74th Constitutional amendment Act:
Present Issues:
- Inadequate water supply and walkable footpaths.
- Corruption: Urban residents suffer due to corruption in municipalities.
The normative basis of local self-governance:
- Local self-governance is linked to the idea of subsidiarity.
- It provides for efficient provision of public goods since governments with smaller jurisdictions can provide services as per the preferences of their residents.
- It promotes deeper democracy since governments that are closer to the people allow citizens to engage with public affairs more easily.
- India’s decentralization agenda is driven by these values.
- States to vest panchayats and municipalities with the authority “to enable them to function as institutions of self-government.
- The power to prepare and implement plans and schemes for economic development and social justice.
- Mandate the regular conduct of local elections
- Provide for the reservation of seats for Scheduled Castes, Schedules Tribes and women in local councils
- Institute participative forums like gram sabhas in panchayats and ward committees in municipal corporations
Issues:
- Local governments, especially municipalities: They operate with limited autonomy and authority.
- Inherent limitations of the 74th amendment and the failure of State governments and courts to implement and interpret the amendment in letter and spirit.
- Discretion given to the States regarding devolution of powers and levying of local taxes.
- State governments are reluctant to implement the 74th amendment: cities are economic powerhouses and controlling urban land is important for financing State governments and political parties.
- Courts: They mostly interpreted the 74th amendment narrowly, allowing State governments to retain their control over cities.
Patna High court on Bihar Municipal (Amendment) Act, 2021:
- The amendment had transferred the powers of appointment of Grade C and D employees of municipalities from the Empowered Standing Committee of the municipality to the State government-controlled Directorate of Municipal Administration.
- The court held that: These provisions violate the 74th Amendment.
- The recentralization of power and the weakening of self-governance “are incompatible with the idea, intent and design of the constitutional amendment”.
Way Forward
- The role and responsibilities of local governments should be foregrounded by normative values which have found expression, at least in some regard, in the Constitution.
- As India is undergoing a centralizing shift in its politics, economy, and culture, there’s also been a renewed assertion of federalism.
- Debates on federalism: It should include larger discussions on how power should be divided and shared between governments at the Union, State, and local level.
- Local governments are structurally an integral part of the federal framework of the Constitution.
QUESTION FOR PRACTICE
Q. To what extent, in your opinion, has the decentralization of power in India changed the governance landscape at the grassroots?(UPSC 2022) (200 WORDS, 10 MARKS)










