Question Q.12GS2GS2
Urban Local Bodies (ULBs) are pivotal to inclusive and efficient urban governance, yet they remain fiscally constrained and institutionally weak. Discuss.
Main Body
74th CAA (1992) – provided constitutional states to ULBs & obligated State Governments to adopt a system of ULBs. which is consistent with the provisions of the Act.
Part IXA – Municipalities Provisions / Articles 243P – 243ZG, 12th Schedule – 18 Functie[s]
Pivotal to Inclusive / Efficient UG:
aligned with Principle of Subsidiarity – local issues are addressed best at the local level → Efficiency.
Stakeholder approach to Governance – involve representatives at the local level who are closer to the people → Inclusivity
Effect Accountability at the local level
allow heterogeneity in policies & approaches → No 'one Size Fits All'
Fiscal Constraint:
insufficient devolution of powers to levy, collect and appropriate tolls, taxes, fines & duties (TFTD)
Reports of SFC not accepted by many governments → no sharing of taxes
Reluctance of ULBs to leverage fiscal power, if any.
thin tax base – heavy reliance on property taxes
low share of Non-tax Revenues
Institutionally Weak:
reluctance of State Govts to devolve Functions & functionaries
Lack of Capacity Building among elected representatives
Weak position of Mayor
Interference by Bureaucracy
Tied nature of Funds → lack of autonomy
Way Forward:
Full & timely devolution of 5Fs (5Fs)
Innovative financing → Bonds, Pooled debt
2/- of GST to ULBs/PPls – kelkat
228 words6 paragraphs17 bullet points
Conclusion
Full & timely devolution of 5Fs, Innovative financing through Bonds and Pooled debt, and allocation of 2% of GST to ULBs/PPls are necessary way forward
25 words
- Comprehensive analysis of ULB challenges
- Clear distinction between fiscal and institutional weaknesses
- Solutions-oriented conclusion
Topper
ADITYA PATHAK
AIR 1892025
Subject & Paper
GS2GS2
Topic
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Local Self Government
Urban Local Bodies
Writing Stats
253
Total words
6
Paragraphs
17
Bullets
analytical
Tone