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      General Studies 2

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      • Important facts for Urban Local Bodies (ULB) reforms

      Important facts for Urban Local Bodies (ULB) reforms

      • Posted by Vizmins Official Post
      • Date February 1, 2021
      • Comments 0 comment
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      urban-local-bodies

      Urban Local Bodies reform - An Introduction

      • In view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the Government of India had enhanced the borrowing limit of the States by 2 percent of their Gross States Domestic Product (GSDP).
      • Half of this special dispensation was linked to undertaking citizen centric reforms by the States.
      • The States get permission to raise additional funds equivalent to 0.25 percent of GSDP on completion of reforms in each sector.
      • The four citizen centric areas identified for reforms were
        • Implementation of One Nation One Ration Card System,
        • Ease of doing business reform,
        • Urban Local body/ utility reforms
        • Power Sector reforms.

      Reforms in the urban local bodies

      • Aim for these steps
        • Financial strenghtening of ULBs in the State
        • To enable them to provide better public health and sanitation services.
        • Economically rejuvenated ULBs will also be able to create good civic infrastructure.
      • Steps to be taken by State Government
        • The State will notify

          • floor rates of property tax in ULBs which are in consonance with the prevailing circle rates.

          • floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/ past inflation.

        • The State will put in place a system of periodic increase in floor rates of property tax/ user charges in line with price increases.
      • Rewards for the State
        • The State becomes eligible to mobilise additional financial resources through Open Market Borrowings.

      Urban Local Bodies

      • Urban Local government implies the governance of an urban area by the people through their elected representatives.
      • 74th Constitutional Amendment Act, 1992 provided constitutional status to local urban bodies.
      • This act added
        • A new part IX-A to the Constitution entitled as ‘The Municipalities’
        • A new Twelfth Schedule containing 18 functional items for municipalities.

      Provisions in the act

      • The main provisions of this Act can be grouped under two categories–
        • compulsory
        • voluntary
      • Compulsory provisions
        • Constitution of
          • Nagar panchayats in transitional areas (areas in transition from a rural area to urban area)
          • municipal councils in smaller urban areas
          • municipal corporations in larger urban areas
        • Reservation of seats in urban local bodies for Scheduled Castes / Scheduled Tribes roughly in proportion to their population
        • Reservation of seats for women up to one-third seats
        • State Election Commission, constituted in order to conduct elections
          • panchayati raj bodies
          • urban local self- governing bodies
        • The State Finance Commission, constituted to deal with financial affairs of the
          • Panchayati Raj bodies
          • local urban self governing bodies
        • Tenure of urban local self-governing bodies is fixed at five years
          • in case of earlier dissolution fresh elections are to be held within six months.
      • Voluntary provisions
        • Giving representation to members of the Union and State Legislatures in these bodies;
        • Providing reservation for backward classes;
        • Giving financial powers in relation to taxes, duties, tolls and fees etc;
        • Making the municipal bodies autonomous and devolution of powers to these bodies to perform some or all of the functions enumerated in the Twelfth Schedule

      Composition

      • The Municipal bodies are constituted of persons chosen by direct election from the territorial constituencies (known as wards) in the municipal area.
      • Legislature of a State may, by law, provide for the representation in a municipal body 
        • persons having special knowledge or experience of municipal administration,
        • the members of Rajya Sabha, Lok Sabha and the members of Legislative Council and Legislative Assembly of the State, representing constituencies, which comprise wholly or partly the Municipal Area.
      • The state legislature may also provide the manner of the election of the Chairpersons of a municipality.
      • The offices of chairperson are also reserved for SC/ST and women.
        • Thus, at least one year, out of five year duration of Municipal Corporation of Delhi, the office of Mayor is reserved for a woman, and for one year is reserved for a Councillor of Scheduled Caste.

      Functions

      • On the basis of functions the organization of Municipality or Corporations have 2 parts
        •  Deliberative
          • The corporation, council or municipal board or council consisting of the elected representatives of the people.
          • It acts like a legislature.
          • It discusses and debates on general municipal policies and performance.
          • It passes the budget of the urban local body.
          • It frames broad policies relating to taxation, resources raising, pricing of services and other aspects of municipal administration.
          • It keeps an eye on municipal administration and holds the executive accountable.
        • Executive
          • It is looked after by the municipal officers and other permanent employees.
          • In the corporations, the Municipal Commissioner is the executive head, and all other departmental officers like engineers, finance officers, health officers etc. function under his/her control and supervision.
          • In a large corporation, such as Delhi or Mumbai Municipal Corporation, the Commissioner is usually a senior IAS officer.
          • In municipalities, the executive officer holds a similar position and looks after the overall administration of a municipality.

      Types of Urban Local Bodies in India

      • Municipal Corporation
        • Municipal corporations are created for the administration of big cities like Delhi, Mumbai etc.
        • A Municipal Corporation has three authorities namely,
          • The council (legislative wing of the corporation) – The council consist of councillors directly elected by people and is headed by a Mayor,
          • The standing committee (to facilitate the working of the council)
          • The commissioner (chief executive authority of the corporation) – Commissioner is appointed by state government and is generally an IAS officer.
      • Municipality
        • These are established for the administration of towns and smaller cities.
        • Also known as municipal council, municipal committee, municipal board, borough municipality, city municipality.
        • Composition
          • They are quite similar to municipal corporations
          • Here head of council is called President /chairman
          • In place of commissioner they have a chief executive officer/chief municipal officer.
      • Notified Area Committee
        • It is created for the administration of two types of areas-
          • a fast developing town due to industrialization
          • a town which does not yet fulfill all the conditions necessary for the constitution of a municipality but considered important by state government.
        • It it is created by a notification (neither a statutory body (created by law) nor an elected body)
        • Composition
          • Unlike the municipality it is an entirely nominated body
          • all members, including the Chairman, are nominated by the state government.
      • Town Area Committee
        • It is set up by a separate act of state legislature for the administration of a small town.
        • It is a semi-municipal authority entrusted with limited number of civic functions.
        • It may be wholly elected or wholly nominated or partly elected and partly nominated as provided by state government.
      • Cantonment Board
        • It is established for municipal administration for civilian population in the cantonment areas.
        • It is set up under the provisions of the Cantonment Act, 2006 by central government.
        • It works under Defence ministry of central government.
        • Composition
          • It is partly elected and partly nominated body
          • It has the Military officer commanding the station as its ex-officio President.
          • Vice president is elected amongst by the elected members of board.
          • The executive officer of the cantonment board is appointed by the President of India.
      • Township
        • It is established by large public enterprises to provide civic amenities to its staff and workers.
        • It is not an elected body and all members, including the town administrator, is appointed by the enterprise itself.
      • Port Trust
        • The port trusts are established in the port areas like Mumbai, Kolkata etc.
        • It’s purposes are
          • To manage and protect the ports;
          • To provide civic amenities.
        • It is created by an Act of Parliament and it consists of both elected and nominated members.
      • Special Purpose Agency
        • The states have set up certain agencies to undertake designated activities or specific functions that legitimately belong to the domain of Urban Local Bodies.
        • They are known as ‘single purpose’, ‘uni-purpose’ or ‘special purpose’ or ‘functional local bodies’.
        • Example- town improvement trust, housing boards, pollution control boards etc.
        • They are established as statutory bodies by an act of state legislature or as departments by an executive resolution.
        • They function as an autonomous body and are not subordinate agencies to local municipal bodies.

      Flash Cards for ULB

      Tag:Indian Polity, Polity, UPSC

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