Home » Indian Polity » Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. » Devolution of Powers and Finances up to Local Levels and Challenges Therein. » 74th amendment act- Municipalities » Significance of ULB
- Addressing the needs of citizens
- The United nations projections suggest that India’s urban population will increase from about 461 million in 2018, to 877 million in 2050
- Under such a growth scenario, the ULBs need to play a significant role in financing public services such as providing safe drinking water, affordable housing, public transport. Wastewater treatment, solid waste management etc.
- Creation of Urban Infrastructure for Economic growth
- Urban settlements act as engines of growth and generate ‘agglomeration economies’ by supplying requisite infrastructure. Construction & Maintenance of such infrastructure requires adequate capital investment from ULBs
- Role in Disaster management
- Cities are exposed to high risk from natural and climate change related hazards
- And thus, local governments are usually the first responders and their first-hand knowledge of community’s social, economic, infrastructure and environmental needs, help them to provide support in a disaster and carry out relief, rehabilitation and reconstruction activities
- To mitigate and adopt them to climate change
- ULBs need to invest in resilient infrastructure, green technologies, clean energy etc.
- To help better implement developmental schemes
- Successful implementation of missions like Smart city mission, AMRUT, HRIDAY etc, finally rests on ULBs efficacy in resource mobilisation and service delivery
- Hence, financial empowerment of ULBs when seen from this perspective is no longer a matter of choice, but a necessity