WHAT IS THE COMPOSITION OF URBAN LOCAL BODIES?

ABSTRACT

This article analyze the critical role that Urban Local Bodies (ULBs) play in India’s urban governance scenario, especially in view of rapid urbanization and the challenges that come with it. The article explores about the urban local bodies, the historical evolution of ULBs, their composition, and the critical role played by the 74^th Amendment to the Constitution of India in 1992. It discuses a diverse set of problems facing ULBs, such as inadequate financing, over-dependence on transfers from the state government, poor potential for revenue generation, unplanned urbanization, state dominance, and multiplicity of agencies in urban management. Such challenges seriously impair the ability of ULBs to deliver essential services and promote sustainable urban development. Besides, the paper proposes measures for strengthening ULBs, which include fiscal decentralization, revenue enhancement through better property tax collection and innovative financing instruments, the establishment of strong financial databases, and most importantly, active citizen participation through platforms like Area Sabhas and Ward Committees. This empowerment of ULBs is expected to make urban governance in India transparent, accountable, and responsive, thereby contributing to inclusive and sustainable urban development.

Keywords

Urban Local Bodies, Urbanization, Municipal Corporation, Municipalities, Decentralization

INTRODUCTION

With rapid progress of urbanization, the Urban Local Bodies (ULBs) have taken on increasing importance in urban governance and sustainable development. The intense growth of urbanization has taken the form of increased demand for better provision of urban infrastructure, housing, sanitation, water supply, and waste management. Effective urban governance is thus very crucial in terms of managing these challenges, which primarily falls under the jurisdiction of local self-government institutions known as Urban Local Bodies. These bodies also form the main link between the government and the urban populace, thus playing a crucial role in the planning, administration, and service delivery at the grassroot level.

Various elements of urban local governance in India have antiquated roots, as in 1688, the first body was put in place in Madras, now Chennai. However, a structured and constitutionally recognized urban governance system was offered by the 74th Constitutional Amendment Act of 1992. This amendment put in place a standardized format for municipal governance in India, giving constitutional guarantee to ULBs while ensuring their autonomy in local administration. Urban local bodies are the democratically elected institution of self-governance, which allows the residents to participate in decision-making processes. Each Urban Local Body is composed of elected representatives, executive officers, and various committees that work collectively to govern and manage urban affairs. Whilst elected councilors and the mayor (or chairperson) represent the political leadership, municipal commissioners and executive officers take care of administrative and technical functions.

There are, however, several obstacles that surround the functioning of the ULBs. Some of these problems are: financial constraints, bureaucratic inefficiencies, political bottlenecks, and misinformation about people participation.[1] Unless strengthened with basic reforms, altered resource transferred between these institutions, and facilitated public participation, they will become unable to ensure effective urban governance.

WHAT ARE URBAN LOCAL BODIES?

The Urban Local Bodies (ULBs) are self-governing bodies in a state or union territory, which take care of the cities, towns, and transitional areas. Their activities include urban development and expansion, but their broader function serves to ensure a better quality of life for the inhabitants. The Urban Local Bodies (ULBs) in India are administrative units that are engaged in the provision of certain civic and infrastructural services to the towns and cities of the country. The Municipal Corporation Act empowers and defines the structure and functions of the ULBs. ULBs provide essential services like water supply, sewage, solid waste management, street lighting, road maintenance, etc. Apart from these basic functions, they also assist in urban planning and development, and are engaged in implementing government schemes and programs for the benefited sections of urban residents. India is home to a total of 4852 Urban Local Bodies. The state of Uttar Pradesh has the highest number of ULBs in India with 763 ULBs whereas Chandigarh state has the lowest number of ULBs in India with only 1 ULB.[2]

BACKGROUND OF URBAN LOCAL BODIES

The origins of urban local bodies in India lay deep into history, all the way back to ancient times when committee or council type bodies of local citizens were established to govern cities. These bodies were responsible for the maintenance of law and order, regulating trade, and providing essential public services such as water supply and waste management. During the British colonial rule, formal local self-government was introduced, and it was in this context that the first municipal corporation in India was set up in Madras (now Chennai) in 1688. This system, with elected municipal councils functioning for a long period in urban governance, gestated over time. After independence, India continued with a system of local self-government, although major reforms were put into place for the vigor thereof. The 74^th Constitutional Amendment Act of 1992 marked a watershed moment by embedding urban local bodies in the constitution as a separate tier of government, granting state government powers to create them and frame rules through legislation. Urban local bodies today perform a variety of functions, from urban planning to infrastructure development, solid waste management, water supply, and transportation, contributing more towards the development and enhancement of quality of life in urban areas.[3]

COMPOSITION OF URBAN LOCAL BODIES

Urban local bodies (ULBs) are organized government institutions responsible for towns and city administration. Members of a Municipal body are selected through a direct election from the territorial constituencies (popularly referred to as wards) in the municipal area. However, the Legislature of a State may, by the law, ensure that there is a representation in the municipal body of persons having special knowledge or experience of municipal administration-the members of Rajya Sabha, Lok Sabha, and the members of the Legislative Council and Legislative Assembly of the State, representing constituencies which comprise wholly or partly the Municipal Area. Furthermore, the state legislature may provide for the manner of election of the Chairpersons of a municipality. The smooth manner of election of the Chairpersons of municipality has been prescribed also by the state legislature. One of the significant constitutional provisions of the Constitutional Amendment, providing for the empowerment of weaker sections of society and women, is the reservation of seats for such groups. Chairperson seats have been reserved for SC/ST and women. Hence, within each five-year term of the Municipal Corporation of Delhi, the office of Mayor is reserved for a woman for at least one year and for a Councilor of Scheduled Caste for one year. It specifies a term of five years for the municipalities and does indicate that it any of them is to be dissolved, they must be given an opportunity to be heard.[4]

Various forms from corporation to council exist according to the type and size of an urban area.

A Municipal Corporation is the most advanced type of urban governance found in larger cities. It is headed by a Mayor, who is either directly elected by the citizens or indirectly by the municipal council. Administration is managed by a Municipal Commissioner who is an IAS cadre officer, appointed by the state government. Corporators are elected representatives from wards, and there are various standing committees responsible for finance, health, and education.
Municipalities rule over smaller cities and towns following a similar structure as Municipal Corporations, but on a smaller scale. They are headed by a Chairperson or President elected by the general public or the municipal council. Chief Officer is appointed by the state government to look after administration. Ward Councillors are the representatives who are elected from different wards, and there are committees to assist in municipal governance.
The Notified Area Committee is established for towns that are developing rapidly and that lack even these basic services. The members being the state government nominated, they do not come from for the election. There is an Executive Officer to control administration under state supervision.
A Town Area Committee consists of small towns which are generally charged with small borough functions, such as street lighting, drainage, and upkeep of roads. This is arranged with a Chairperson who is either elected or nominated and is comprised of members with much less decision-making power.
Cantonment Boards are aimed exclusively at assisting the civilian populations residing in military cantonment areas. Each Cantontment Board is presided over by a President, who shall be the senior-most military officer in the cantonment. Members of the boards include elected members of the civil population; Executive Officer appointed by the central government and representatives of the military for the military-related affairs.
A Township is a kind of urban body for the realization of basic facilities for workers and staff living in industrial colonies or project bases. Unlike any other urban body, it has no elected representatives. Instead, it is headed by an Administrator, a government-appointed person, along with heads of departments responsible for providing essential services like water supply, electricity, and sanitation.
The Port Trust is established in port cities like Mumbai, Chennai, and Kolkata to carry out port-related activities, including providing civic amenities to the port area. It is presided over by a Chairperson appointed by the government, and Trustees are drawn from a variety of stakeholders – which looms large in the port business, government agencies, shipping companies, and port workers. It also has a set of administrative staff to look after the day-to-day functioning of the port and its surroundings.
Finally, a Special Purpose Agency is constituted to handle various urban functions like water supply, public transport, housing, or urban planning. The structure of these agencies consists of government-appointed officials, experts, and board members representing municipal bodies, the state government, and, in some situations, the private sector.[5]

All of these urban local bodies contribute to good governance, infrastructure development, and delivery of service in various ways. The composition ensures representation, administrative efficiency, and means of coordinating different levels of government.

PROBLEMS FACED BY URBAN LOCAL BODIES

Urban Local Bodies (ULBs) play a crucial role in managing the administration of cities and towns, ensuring efficient delivery of essential services like sanitation, water supply, and urban planning. However, despite their significance, ULBs face several structural and functional challenges that hinder their effectiveness. These problems stem from financial constraints, administrative inefficiencies, and a lack of autonomy. Below is a detailed discussion of the key issues faced by Urban Local Bodies in India.

Financial Paucity

One of the most pressing issues confronting ULBs is financial inadequacy. The increasing demand for urban services requires substantial financial resources, but the revenue generated by municipal bodies is often insufficient. Their capacity to raise funds through local taxation, user charges, and service fees remains limited. Furthermore, poor financial management, corruption, and inefficiencies in tax collection exacerbate the situation. Without adequate funding, ULBs struggle to provide quality urban infrastructure, maintain public utilities, and implement welfare programs effectively.[6]

Dependence on Intergovernmental Transfers

Urban Local Bodies heavily rely on financial assistance from state governments in the form of grants-in-aid from the consolidated fund of the state. This dependence reduces their financial autonomy and often results in delays or inconsistencies in fund allocation. Since state governments prioritize funding based on their political and economic considerations, local governments frequently find themselves constrained in executing projects efficiently. The uncertainty in receiving financial support weakens the ability of municipal bodies to plan long-term urban development projects.[7]

Inadequate Share in Revenue

The revenue sources available to ULBs are insufficient compared to the increasing scope of their responsibilities. Their primary sources of income include property tax, water tax, entertainment tax, and license fees. However, these revenues barely cover operational expenses. Although municipalities have the authority to impose new taxes, elected representatives are often reluctant to do so for fear of losing voter support. As a result, the financial burden on urban bodies continues to rise without corresponding revenue growth, leading to inadequate service delivery and infrastructure maintenance.[8]

Unplanned Urbanization

The rapid and unregulated expansion of urban areas has overwhelmed municipal services. Due to poor urban planning, cities face problems like traffic congestion, inadequate waste management, and poor drainage systems. Informal settlements and slums continue to expand without basic amenities like clean water, sanitation, and healthcare facilities. The absence of a long-term vision for urban development leads to ecological degradation, rising unemployment, and increased urban poverty. Moreover, municipalities often lack the administrative machinery and technical expertise to address these challenges efficiently.[9]

Excessive Control of State Government

Despite being constitutionally recognized as autonomous institutions, ULBs function under the strict control of state governments. State authorities exercise legislative, administrative, judicial, and financial control over municipal bodies, making them subordinate rather than self-governing entities. Municipal budgets need state approval, and borrowing limits are regulated by state governments. Unlike the Union and State Governments, there is no distinction between revenue and capital expenditure at the urban local governance level. This lack of autonomy limits municipalities’ ability to undertake independent urban development initiatives.[10]

HOW CAN WE STRENGTHEN URBAN LOCAL BODIES?

Urban Local Bodies (ULBs) are the foundation of urban governance, responsible for delivering essential services and ensuring sustainable urban development. However, for them to function effectively, they must be empowered with financial independence, administrative efficiency, and active citizen participation. Strengthening ULBs requires a multi-faceted approach that includes fiscal decentralization, better revenue management, improved financial transparency, and enhanced citizen engagement. Below are some key measures to empower urban local governments.

Making Urban Local Bodies Financially Independent

One of the primary challenges faced by ULBs is financial dependence on state governments and central grants. To strengthen urban governance, it is essential to promote fiscal decentralization, allowing municipalities to generate and manage their own revenue. Providing local bodies with greater control over taxation, user charges, and municipal bonds will reduce dependency on intergovernmental transfers. Additionally, enabling cities to explore innovative revenue sources, such as public-private partnerships (PPP) and municipal borrowing, can further enhance their financial autonomy.[11]

Strengthening Municipal Revenue

A key step in empowering ULBs is improving their ability to generate revenue through efficient taxation policies. The Finance Commissions of India have repeatedly emphasized the importance of augmenting property tax collection, as it is one of the most significant revenue sources for municipalities. The 12^th Finance Commission encouraged the use of Geographical Information System (GIS) technology and digitization to improve property tax administration. Similarly, the 13^th Finance Commission introduced the State Property Tax Board, aimed at helping municipal bodies create a transparent and effective property tax system. The 14^th Finance Commission further recommended empowering municipalities to levy a vacant land tax to increase revenue. Strengthening property tax collection through digitization, regular assessment, and strict enforcement will significantly boost municipal finances.[12]

Developing a Better Financial Database

A major obstacle to urban governance is the lack of reliable financial data at the municipal level. Many ULBs do not maintain proper records or conduct regular audits, leading to financial mismanagement and loss of potential grants. Both the 13^th and 14^th Finance Commissions recommended that local governments maintain accurate financial databases as a prerequisite for performance-based grants. Regular audits, digital record-keeping, and financial transparency will not only improve revenue collection but also enable municipalities to plan and implement projects more efficiently.[13]

Ensuring Active Citizen Participation

Transparency and accountability in governance can only be achieved through active citizen participation. When residents are involved in decision-making, they become more aware of urban issues and contribute towards better governance. ULBs should establish decentralized platforms such as Area Sabhas and Ward Committees, which act as forums for discussion and deliberation between citizens and elected representatives. These platforms allow for participatory planning, ensuring that municipal policies align with the actual needs of residents. Encouraging community-driven initiatives, such as participatory budgeting and social audits, will also strengthen governance and make municipal bodies more responsive.[14]

CONCLUSION

Urban local bodies (ULBs) are pivotal in urban governance in India, where they manage very much the cities and ensure efficient delivery of services. The 74th Constitutional Amendment Act of 1992 accorded constitutional status to the ULBs which mustering decentralized governance and nurturing the citizen participation in the decision-making process. The ULBs are, however, faced with challenges like financial incapacity, dependence on transfers from other levels of Government, bureaucratic inefficiencies, and bureaucratic encroachments over its powers. The other side of rapid urbanization is that it shrinks municipal potential and resources, causing transportation and conveniently infrastructural facilities to accomplish deliveries, aggravate urban inequalities; multiple agencies in action, when conflict and cooperation don’t find their way; results in an illumination of fragmentation, illegitimacy, inefficiency, and tardy implementation under the urban governance regime.

In order to strengthen ULBs, ULBs require a holistic approach. Decentralizing fiscal power will ensure financial independence; strengthening municipal revenue sources through effective property tax collection and innovative financing mechanisms such as public-private partnerships will go a long way in improving financial viability. A regular audit system supported by a financial database will help in financial management and instill public confidence in local governance.

Similarly, citizen participation is imperative in urban governance to nurture accountability and transparency. Through mechanisms such as participatory budgeting and social audits, citizens can be empowered to keep track of municipal functions and ensure that urban policies meet the people’s needs. The strengthening of ULBs is not merely an administrative necessity but a vital thing for inclusive and sustainable development of well-governed cities to respond to urbanization and uplift the quality of life for all.

REFERENCES

CIVILS DAILY https://www.civilsdaily.com/urban-local-government-composition-functions-problems/ (last visited February 02, 2025)
VAJIRAM AND RAVI https://vajiramandravi.com/quest-upsc-notes/urban-local-bodies/ (last visited February 02, 2025)
LOCAL BODY DATA https://localbodydata.com/urban-local-bodies-of-india (last visited February 02, 2025)
DRISHTI JUDICIARY https://www.drishtiias.com/daily-updates/daily-news-editorials/urban-local-government-in-india (last visited February 02, 2025)
NEXTIAS https://www.nextias.com/blog/urban-local-government/ (last visited February 02, 2025)

[1] Urban Local Bodies, VAJIRAM AND RAVI (last visited February 02, 2025, 11:26 PM), https://vajiramandravi.com/quest-upsc-notes/urban-local-bodies/

[2] Urban Local Bodies of India, LOCAL BODY DATA (last visited February 02, 2025, 12:04 PM), https://localbodydata.com/urban-local-bodies-of-india

[3] Urban Local Bodies, VAJIRAM AND RAVI (last visited February 02, 2025, 12:16 PM), https://vajiramandravi.com/quest-upsc-notes/urban-local-bodies/

[4] Urban Local Government: Composition, Functions, Problems, CIVILS DAILY (last visited February 02, 2025, 12:30 PM), https://www.civilsdaily.com/urban-local-government-composition-functions-problems/

[5] Types of Urban Local Government in India, NEXTIAS (last visited February 02, 2025, 12:46 PM), https://www.nextias.com/blog/urban-local-government/

[6] Urban Local Government in India, DRISHTI JUDICIARY (last visited February 02, 2025, 2:03 PM), https://www.drishtiias.com/daily-updates/daily-news-editorials/urban-local-government-in-india

[7] Ibid.

[8] Ibid.

[9] Ibid.

[10] Ibid.

[11] Ibid.

[12] Ibid.

[13] Ibid.

[14] Ibid.

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