74th Constitutional Amendment

- Submitted by S MONIKA (20MAR014)

Introduction

In the 74th Constitutional amendment the government added Part IX – A to the constitution. It
was enacted in 1993 as a framework of decentralization of powers and authorities to the
municipal bodies at different levels. (Democratic Decentralization)

The amendment made municipal government a formal part of the 3 tier system, along with
State and Union Government. The amendment mandated setting up of Municipal
Governments in urban areas; it left the details to the state through their respective Municipal
Acts. The state are expected to devolve adequate powers , responsibilities & finances upon
these bodies so as to enable them to prepare plans and implement schemes for economic
development and social justice.

Origin

In many states the local bodies had become weak and ineffective due to failure to hold
regular elections, prolonged suppression and inadequate devolution of powers and functions.
The main objective of the amendment was –

1. A firmer relationship between State Government and ULB’s with regard to

a. Functions and taxation powers
b. Arrangements for revenue sharing
2. Regular conduct of elections
3. Timely election in case of suppression
4. Adequate representation of weaker sections.( SC, ST & Women)
5. Involvement of elected representative at grass root level in planning at district and
metropolitan level.

Provisions

The amendment, Part IX – A deals with issues relating to municipalities, the main provisions
introduced are –

1. Constitution of municipalities: It provides constitution of three types based on the

size and area; the deciding minutes are left to the State.
a. Nagar Panchayat – transitional areas from rural to urban
b. Municipal Council – smaller urban area
c. Municipal Corporation – larger urban area
2. Composition of municipalities: It will be decided by the State legislature having
following features:
a. Seats to be filled by direct elections.
 b. Representation of Chairpersons of Committees, if any at ward level or other
level in municipalities
c. Representations of persons having special knowledge or experience of
Municipal administration in Municipalities without voting rights. (Some seats)
3. Constitution of Ward Committees: It provides for constitution of ward committees
at municipalities with a population of 3 lakhs or more.
4. Reservation of seats: SC & ST on the basis of their population and not less than 1/3
of it (SC & ST) for women, 1/3 of total seats for women, in favour of backward class
if stated by the legislature of state and in office of chairperson as specified in the State
law.
5. Duration of Municipalities: A fixed period of 5 years and re-lection within the 6
months of end of tenure. If a municipality is dissolved before expiration, elections to
be held within a period of 6 months of its dissolution.
6. Powers & functions of the Municipalities: The state legislature devolves powers
and responsibilities with regard to economic development and social justice, and
implementation of development schemes as may be required for functioning as
institutions of self-government.
7. Finances of municipalities: Levy of taxes, assigning of such taxes and duties by the
state government and for making grants by the State as in law.
8. Financial Commission: Review the finances of the municipalities & recommend
principles for determining taxes, sharing taxes between state and municipality and
grant in aid by the state Consolidated Fund.
9. Audit of accounts of the Municipal Corporations by the comptroller and the
auditor general of India and laying reports before the State legislature & Municipal
Corporation concerned
10. Election to be conducted as per state legislature under the superintendence, direction
and control of the chief electoral officer of the state.
11. Application of the provisions of the bill to any Union territory or with modification
as specified by the President.
12. Exemption of scheduled areas and tribal areas referred in clause 1 & 2 of article 244,
extensions of provision may be done by Parliament by law.
13. Disqualifications for members of municipality
14. Bar of jurisdiction of courts in matters related to election to the Municipalities.
15. Committee for District Planning: Preparation of Draft Development plan for the
district in common interest of Panchayats and Municipalities, integrated development
and sharing of natural resources.
16. Metropolitan Planning Committee: A metropolitan area with a population of 10
lakh and above should constitute a Metropolitan Planning committee for preparing a
Draft Development Plan for the metropolitan area as a whole.