38

Cbapter - 2
MEANING, NATURE AND SCOPE OF
LOCAL GOVERNMENTS
IndIa bas tbe dIstInctIon oI beIng a unIque IederaI country.
OrdInarIIy, IederaIIsm InvoIves a two tIer system - centraIJunIon
government at tbe IIrst IeveI and tbe stateJprovIncIaI government at
tbe second IeveI. But tbe IndIan constItutIon provIdes Ior a tbree tIer
IederaI structure as beIow: -
UnIon Government at tbe top
State Government In tbe MIddIe
LocaI Government I.e. Pancbayats and MunIcIpaIItIes at Grass
Root
As sucb, In IndIa, LocaI Government Is tbe tbIrd stratum oI tbe
Government, tbe IIrst two beIng tbe centraI and state Governments.
IndIa Is known to be tbe worId's Iargest democracy. In constItutIonaI
sense, democracy Is tbe system oI Government, In tbe admInIstratIon
oI wbIcb, every aduIt cItIzen oI tbe country enjoys some dIrect or
IndIrect sbare. KeepIng In vIew tbe reaI spIrIt and bIgb Ideas oI
democracy, LocaI Government Iorms an IndIspensabIe part oI
governance and admInIstratIon In IndIa.
Tbe LocaI Government's jurIsdIctIon Is IImIted to a specIIIc area
and Its IunctIons reIate to tbe provIsIon oI cIvIc amenItIes to tbe
popuIatIon beIng wItbIn Its jurIsdIctIon. A LocaI Government IunctIons
39
wItbIn tbe provIsIons oI tbe statute wbIcb bas created It. It Is
subordInate to tbe state or provIncIaI government wbIcb exercIses
controI and supervIsIon over It. But tbe actIvItIes oI tbe LocaI
Government are not Iess numerous. LocaI Government bas been
undertakIng new actIvItIes wbIcb eItber reguIated tbe conduct oI tbe
cItIzens or are In tbe nature oI servIce sucb as provIsIon oI mass
transport, constructIon oI bouses Ior tbe poor, suppIy oI eIectrIcIty,
beaItb centers, parks, pIay grounds etc. In Iact, LocaI Government Is
today mucb more Important In tbe daIIy IIIe oI a cItIzen tban tbe state
or centraI government.
Tbe Importance oI LocaI government can bardIy be over
empbasIzed wben we consIder tbe range, tbe cbaracter and tbe Impact
upon tbe daIIy IIIe oI tbe cItIzen oI tbe IunctIons wbIcb IocaI
autborItIes carry out. LocaI Government provIdes pubIIc amenItIes and
servIces wbIcb are necessary Ior tbe convenIence, beaItbIuI IIvIng and
weIIare oI tbe IndIvIduaI and tbe communIty. BreakIng down oI
munIcIpaI servIces means tbe entIre dIsIocatIon oI socIaI and
economIc IIIe oI tbe communIty. II tbese servIces were suddenIy to
cease, we sbouId reIapse Into cbaos.
1
Tbe LocaI Government InstItutIons are based on tbe prIncIpIe
oI dIvIsIon oI Iabour. Tbey are IndIspensabIe because tbe aggregate
dutIes oI government and IocaI autborItIes can tbus be sbared.
2
Tbe
1 J.H. Warren, Tbe LocaI Government ServIce" (19S2), p. S.
2 J.S. MIII, ConsIderatIons on RepresentatIve Government", (1S6S), p. 213.
40
admInIstratIon Irom wItbout Iacks tbe vItaIIzIng abIIIty to be
responsIbIe to pubIIc opInIon. It cannot grasp tbe genIus oI tbe
pIace. LocaI Government Is tbereIore educatIve In perbaps a bIgber
degree tban any otber part oI government.
3
Tbe constItutIon oI IndIa
aIms at tbe estabIIsbment oI a weIIare state and strengtbenIng oI
LocaI Government may ensure Its proper acbIevement. Tbe weIIare
servIces oI tbe modern state, In vIew oI tbe IIexIbIe tecbnIque oI
admInIstratIon tbey requIred, essentIaIIy munIcIpaI In prIncIpIe and
practIce.
4
LocaI Government botb In urban and ruraI areas bas tbus to
sbouIder manIIoId and compIex responsIbIIItIes. Tbe centraI and state
governments are conscIous oI tbe sbort-comIng Irom wbIcb IocaI
government suIIered In tbe past. Tbey bave tbereIore been tryIng to
understand tbem by InstItutIng severaI enquIres and studIes.
S
Tbe
CentraI Government, Ior Instance, set up tbe LocaI FInance EnquIry
CommIttee (19S1) and tbe TaxatIon EnquIry CommIssIon (19S4) to
examIne tbe probIems oI IInances oI urban IocaI bodIes. A centraI
councII oI LocaI SeII-Government was estabIIsbed In 19S4 to consIder
and recommend broad IInes oI poIIcy and draw up a common
programme oI actIon to promote IocaI seII-government tbrougb out
IndIa. Tbe councII set up a commIttee on AugmentatIon oI FInancIaI
Resources oI Urban LocaI bodIes In 196S.
3 HaroId LaskI, Grammar oI PoIItIcs" (19S0), p. 212.
4 M.P. Sbarma, LocaI SeII-Government In IndIa" (196S), p. 2.
S Tbe Report oI semInar on Tbe Pattern oI RuraI Government" PubIIsbed by
IndIan InstItute oI PubIIc AdmInIstratIon, New DeIbI, (19SS), pp. S0-94.
41
Town and vIIIages are two dIstInct entItIes In IndIa. Tbey bave
dIIIerent needs and probIems. Tbe maIn requIrements oI towns are tbe
provIsIons oI bousIng, transport, communIcatIons, water suppIy,
sanItary condItIons, communIty centers, sIum cIearance and town
pIannIng wbIIe maIn empbasIs In tbe vIIIage bas to be on Improvement
oI agrIcuIture, IrrIgatIon IacIIItIes, anImaI busbandry, vIIIage
IndustrIes and tbe IIke. Tbe personneI oI Urban LocaI Government and
PancbayatI Raj InstItutIons wouId tbus requIre specIaIIsed traInIng to
cater tbe specIIIc needs oI urban and ruraI areas respectIveIy. Tbe
study tbereIore, empbasIs's tbe need Ior two dIstInct set oI personneI
requIrement Ior tbe urban and ruraI IocaI bodIes.
MEANING OF LOCAL GOVERNMENTS
It Is not easy to answer tbe questIon wbat Is IocaI government"?
LocaI Government may be descrIbed as government by popuIarIy
eIected bodIes cbarged wItb admInIstratIve and executIve dutIes In
matters concernIng tbe InbabItants oI a partIcuIar dIstrIct or pIace
and vested wItb powers to make bye-Iaws Ior tbeIr guIdance. LocaI
Government bas been deIIned Irom varIous angIes. It bas been deIIned
as an autborIty to determIne and execute measures wItb In restrIcted
area InsIde and smaIIer tban tbe wboIe state."
Tbe term LocaI Government" IIteraIIy means management oI
tbe IocaI aIIaIrs by tbe peopIe oI tbe IocaIIty. It Is based on tbe
prIncIpIe tbat tbe IocaI probIems and needs can be Iooked by tbe
42
peopIe oI tbe IocaIIty better tban by centraI or state governments. Tbe
admInIstratIon oI IocaI aIIaIr Is entrusted to tbe representatIves
eIected by tbe peopIe oI tbe IocaIIty on reguIar IntervaIs. Tbougb IocaI
government InstItutIons enjoy autonomy oI operatIons, It does not
mean tbat tbere are no IegaI restrIctIons upon tbem. Tbe centraI and
state governments are Iree to prescrIbe tbe IImIts wItbIn wbIcb a IocaI
government bas to operate and aIso reserve tbe rIgbt to Issue
dIrectIons Irom tIme to tIme.
Tbe term LocaI Government" or LocaI-seII government' means
tbe government by IreeIy eIected IocaI bodIes wbIcb are endowed wItb
power, dIscretIon and responsIbIIIty to be exercIsed and dIscbarged by
tbem, wItbout controI over tbeIr decIsIons by any otber bIgber
autborIty. TbeIr actIons are, bowever, subjected to tbe supremacy oI
tbe natIonaI government. DeIInIng IocaI seII-government, It bas been
observed tbat: LocaI InbabItants representIng IocaI body possessIng
autonomy wItbIn Its IImIted spberes, raIsIng revenue tbrougb IocaI
taxatIon and spendIng Its Income on IocaI servIces constItute tbe
IocaI-seII-government.
6
For a better understandIng oI tbe concept oI
LocaI Government and Its meanIng, scope and nature, It sbaII be
desIrabIe to study a Iew Important deIInItIons and InterpretatIons Irom
varIous sources.
As per tbe GeneraI CIauses Act, 1S9? LocaI Government sbaII
mean tbe person autborIzed by Iaw to admInIster executIve
6 K. Venkata rangIa LocaI Government In IndIa", Bombay (1969), p. 1.
43
Government In tbe part oI BrItIsb IndIa In wbIcb tbe Act or ReguIatIon
contaInIng tbe expressIon operates and sbaII IncIude a CbIeI
CommIssIoner.
?
Tbe word LocaI Government aIso IInds mentIon In tbe
Government oI IndIa Act, 193S.
S
Wbereby tbe pbrase LocaI
Government bas a due pIace, tbougb not reIevant Ior tbe present
dIscussIon. AccordIng to emInent scboIar and poIItIcaI scIentIst
C1orKe, LocaI Government Is tbat part oI tbe Government oI a natIon
or state wbIcb deaIs maInIy wItb sucb matters as concern tbe
InbabItants oI tbe partIcuIar dIstrIct oI pIaces, togetber wItb tbose
matters wbIcb parIIament bas deemed It desIrabIe sbouId be
admInIstered by IocaI bodIes, subordInate to tbe CentraI Government.
9
TbIs deIInItIon tbougb quIte comprebensIve makes no reIerence to two
Important eIements oI LocaI Government vIz. IocaIIy eIected or
controIIed councIIs and IocaI IInances.
AccordIng to D. LooKord OpInes tbat IocaI government may be
IooseIy deIIned as a pubIIc organIzatIon, autborIzed to decIde and
admInIster a IImIted range oI pubIIc poIIcIes wItbIn reIatIveIy smaII
terrItory wbIcb Is a sub dIvIsIon oI a regIonaI or natIonaI
government.
10
AccordIng to M. Goe1z SeII-Government ImpIIes mereIy
a Iorm oI communaI admInIstratIon". .L. Hos1uK opInes tbat IocaI
? SectIon 3 (29).
S SectIon 134 (4).
9 Tbe LocaI Government oI U.K., 194S, p. 1 (AIso see DeveIopment & LocaI
AdmInIstratIon by SabIb SIngb, 2001, p. S).
10 D. Lockard, EncycIopedIa oI SocIaI ScIences", VoI. 9, New York, p. 4S.
44
government Is tbat spbere oI government wItbIn wbIcb IocaI bodIes are
IegaIIy permItted to adopt varIatIons In admInIstratIon. H. S1dgu1oK
taIks about IocaI government as certaIn subordInate bodIes wbIcb
bave deIIned powers oI makIng ruIes and reguIatIons wItbIn tbeIr
prescrIbed areas oI admInIstratIon.
AccordIng to P. S1ones LocaI Government Is tbat part oI tbe
government oI a country wbIcb deaIs wItb tbose matters wbIcb
concern tbe peopIe In partIcuIar IocaIIty.
11
He poInts out Iurtber tbat
It acts as tbe communItIes' bousewIIe, In tbat It makes our
surroundIngs IIt to IIve In, keeps tbe streets cIean, educate our
cbIIdren, buIIds our bouses and does aII tbose otber sImIIar jobs
wbIcb enabIe us to Iead a cIvIIIzed IIIe. V. VonKo1o Roo poInts out
tbat LocaI Government Is tbat part oI tbe government wbIcb deaIs
maInIy wItb IocaI aIIaIrs, admInIstered by autborItIes subordInate to
tbe state government but eIected IndependentIy oI tbe state autborIty
by tbe quaIIIIed resIdents.
12
AccordIng to L. Go1d1ng LocaI
Government Is tbe management oI tbeIr own aIIaIrs by tbe peopIe oI a
IocaIIty"
13
Jenn1ngs deIIne LocaI Government as governmentaI
organs bavIng jurIsdIctIon not over tbe wboIe oI a country but over
specIIIc portIon oI It.
14
11 P. Stone, LocaI Government Ior Students", London, MC DonaId and Evons
Ltd., (1963), p. 1.
12 V. Venkata Rao A bundred year oI LocaI SeII- Government In Assam,
CaIcutta, BenI Parkasb, Mander, (196S), p. 1.
13 GoIdIng L. LocaI Government" London (19SS), p. 19.
14 L. JennIngs, PrIncIpIes oI LocaI Government Law" (3rd EdItIon), London,
194?, p. 1.
45
AccordIng to B. R. GoKo1e LocaI Government Is tbe
government oI specIIIc IocaIIty by tbe IocaI peopIe tbrougb tbe
representatIves eIected by tbem."
1S
In tbe words oI Humes ond
Mor11n LocaI Government possesses most oI tbe IoIIowIng
attrIbutes: a popuIatIon, a cIearIy deIIned area, tbe capacIty to sue
and be sued, tbe abIIIty to make contracts, a contInuIng
organIsatIon, tbe autborIty to undertake and tbe power to conduct
pubIIc actIvItIes and tbe rIgbt to coIIect revenue and determIne a
budget"
16
AccordIng to Bgrne LocaI Government Is marked out as
a dIstInctIve Iorm oI pubIIc admInIstratIon by IIve key Ieatures."
1?
It
Is eIected, muItIpurpose operates on a IocaI scaIe bas a cIearIy
deIIned structure, and Is subordInate to parIIament. Homp1on
opInes tbat LocaI autborItIes bave cIearIy deIIned geograpbIcaI
boundarIes, muItIpurpose or compendIous bodIes, dIrectIy eIected
and bavIng Independent power oI raIsIng taxatIon."
1S
AccordIng to
M1ooe1 Reo11ng LocaI Governments are seen as assocIatIons oI
IndIvIduaIs cboosIng to govern tbeIr own aIIaIrs, deIInIng tbeIr
boundarIes and negotIatIng tbeIr powers."
19
AccordIng to Dou1d
1S GokbaIe B.K., Tbe ConstItutIon oI IndIa" Bombay, Sbetb & Company (19?2),
pp. 130?-0S.
16 Humes & E. MartIn, Tbe structure oI LocaI EnvIronment" (1st ed.), Tbe
Hague, (1961), p. 2S.
1? Tony Byrne, LocaI Government", In BrItaIn (Stb ed.), London, RengwIn Books
(1990), p. 2.
1S WIIIIan Hampton LocaI Government and Urban PoIItIcs", (2nd ed.), London,
(1991), p. 3.
19 MIcbaeI KeatIng, ComparatIve Urban PoIItIcs", AIdersbot EngIand, Edward
EIgar (1991), pp. 21-22.
46
W11son ond ossoo1o1es LocaI Government Is a Iarge
geograpbIcaIIy deIIned muItI-IunctIonaI organIsatIon, pursuIng a
varIety oI socIaI, poIItIcaI and economIc objectIves, eItber tbrougb
tbe dIrect provIsIon or tbrougb tbe sponsorsbIp, IndIrect IundIng,
reguIatIon or monItorIng oI a very extensIve range oI servIces to Its
IocaI communIty.
20
Pro]essor W. A. Robson opInes tbat LocaI
Government may be saId to InvoIve tbe conceptIon oI a terrItorIaI,
non sovereIgn communIty possessIng tbe IegaI rIgbt and tbe
necessary organIsatIon to reguIate Its own aIIaIrs. TbIs Is turn
presupposes tbe exIstence oI IocaI autborIty wItb power to act
IndependentIy oI externaI controI as weII as tbe partIcIpatIon oI tbe
IocaI communIty In tbe admInIstratIon oI Its own aIIaIrs.
21
An anaIysIs oI above mentIoned deIInItIons oI IocaI government
reIIects tbat tbere are two aspects oI IocaI government (a) tbe reIatIon
oI tbe IocaI bodIes to tbe centraIJstate governments, (b) tbeIr reIatIon
to tbe IocaI communIty, wbIcb sbouId be determIned by tbe IoIIowIng
prIncIpIes:-
(I) It Is desIrabIe to aIm at tbe smaIIest possIbIe unIt tbat can
perIorm a partIcuIar task eIIIcIentIy so as to beIng IocaI
government as nearer as possIbIe to tbe peopIe,
20 DavId WIIson & CbrIs Game and otbers, LocaI Government In tbe UnIted
KIngdom", London, MacmIIIan, (1994), p. S.
21 Robson, W.A., EncycIopedIa oI SocIaI ScIences", VoI. 9, New York, Tbe
MacmIIIan Company, p. S?4.
47
(II) II a unIt Is so Iarge tbat members oI LocaI Government cannot
reguIarIy attend Its meetIngs, IocaI Government wIII tend to
Ioose Its representatIve cbaracter,
(III) Wberever possIbIe tbat unIt sbouId be based on naturaI IocaI
IoyaItIes, tbougb tbIs prIncIpIe wIII oIten bave to be sacrIIIced to
eIIIcIency or aIternatIveIy we wIII bave to abandon tbe Idea oI
progress.
Tbus, tbe essentIaI cbaracterIstIcs oI LocaI Government are (I)
Its statutory status (II) Its power to raIse IInance by taxatIon In tbe
area under Its jurIsdIctIon, (III) partIcIpatIon oI IocaI communIty In
decIsIon makIng In specIIIed subjects and tbeIr admInIstratIon (Iv) tbe
Ireedom to act IndependentIy oI centraI controI and (v) Its generaI
purpose, In contrast to sIngIe purpose, cbaracter.
22
Tbus anaIysIs or examInatIon oI varIous deIInItIons oI LocaI
Government gIven above reveaIs tbat IocaI government Is a
combInatIon oI varIous eIements and no sIngIe deIInItIon IncIudes aII
oI tbem. Tbeses eIements IncIude a IocaI statutory body, IocaI
InbabItants eIectIng and controIIIng tbat body, IImIted autonomy In
tbe sense tbat state governments In a IederatIon and centraI
government In unItary system gIve tbem a IImIted Ireedom to perIorm
tbeIr IunctIons prescrIbed by Iaw, a recognItIon oI dIstInctIon between
22 MabesbwarI, S.R., LocaI Government In IndIa" Agra, LaksbmI NaraIn
AggarwaI, 19S4, p. S.
48
IocaI and non-IocaI servIces, and power to Ievy IocaI taxes. Tbus, a
IocaI government bas many attrIbutes.
DIMENSIONS OF THE CONCEPTS OF LOCAL GOVERNMENT
Tbe concept oI IocaI government tbus Is muItI-dImensIonaI. It
bas been poInted out tbat It Is basIcaIIy an organIzed socIaI entIty wItb
a IeeIIng oI oneness. Tbe IocaI government Is an Integrant oI tbe
poIItIcaI mecbanIsm Ior governance In a country. As a body corporate
wItb jurIstIc person, It represents a IegaI concept.
23
Furtber, LocaI
Government Is an admInIstratIve concept, not known to otber IeveI oI
government, wItb Its councIIors InvoIved In makIng, unmakIng and
remakIng admInIstratIve decIsIons In councII and Its commIttees wItb
dIrect bearIng on cIvII servIces to tbe IocaI peopIe and now In natIon
buIIdIng actIvItIes. SImIIarIy, geograpby and demograpby oI a IocaI
area aIong wItb economIc Iactors oIIer Important dImensIons In tbe
conceptuaI artIcuIatIon oI IocaI government. Not onIy bas tbIs, but
aIso envIronment, contrIbuted to Its bIrtb, growtb and deveIopment.
WItb an object to bave a comprebensIve knowIedge about tbe
concept oI LocaI Government, It wouId be wortb-wbIIe to dIscuss Its
varIous dImensIons In some detaII wbIcb are sbown: -
Concept oI LocaI Government - Some DImensIons
Social Political Economic Administrative Geographical Legal
23 M.A. MuttaIIb and Akbar AII Kban, Tbe Tbeory oI LocaI Government", New
DeIbI, SterIIng PubIIsber, 19S2, p. 1-3.
49
1) SocIaI
LocaI Government Is an organIzed socIaI entIty. TbIs In turn
deveIops:-
Some ExampIes
(I) A smaII group oI buman settIement wItb agrIcuIture as a major
proIessIon oI tbe peopIe and Inadequate means oI
communIcatIon Is cbaracterIzed as a ruraI IocaI autborIty.
(II) A buman settIement wItb dIverse proIessIonaI I.e.
agrIcuIturaIIsts and non-agrIcuIturaIIsts co-exIstIng aIong wItb
some means oI communIcatIon Is oIten cIassIIIed In IndIa, as
munIcIpaIIty.
2) PoIItIcaI
Tbe poIItIcaI dImensIons oI LocaI Government presents to us tbe
most Important oI Its concepts, wbIcb Is bowever, dIIIerent Irom
50
otbers, Iorms oI pubIIc agencIes, In spIte oI tbe Iact tbat tbey bave
some common cbaracterIstIcs. SInce tbe operatIonaI Ireedom to IuIIIII
IocaI needs and aspIratIons wItb necessary popuIar mandate Is tbe
baII mark oI IocaI government, It Is tbus a varIant oI democracy, In
spIte oI Its varIance In Iorm. To be more specIIIc, because oI Its
democratIc cbaracter, It Imparts poIItIcaI educatIon oI tbe IocaI peopIe.
3) EconomIc
Tbe concept oI LocaI Government bas an economIc dImensIon oI
mucb sIgnIIIcance. A IocaI body can prove to be eIIIcIent and eIIectIve
wItbout mucb eIIect oI tbe IocaIIty Is economIcaIIy sound. It bas been
poInted out tbat tbe economIc base oI dIIIerent cIasses oI tbe
communIty determInes tbe IocaI poIItIcs. In IndIa, Ior Instance, a ruraI
IocaI autborIty Is domInated by tbe Iarmers, wbIIe on urban autborIty
bas proIessIonaIIy dIversIIIed composItIon. Tbe economIc dImensIon In
nutsbeII bIgb-IIgbts tbe Iacts oI tbe IocaI autborItIes: One, wItb a
bearIng on tbeIr very exIstence as unIts Ior seII governance and tbe
otber tbeIr IegItImate pIace In tbe natIonaI deveIopment. Tbe
cumuIatIve eIIect can be In tbe Iorm oI partnersbIp between
government and IocaI government so as to acbIeve tbe uItImate goaI oI
good IIIe.
4) AdmInIstratIve
In Iact, tbe IocaI government Is operatIonaIIy an admInIstratIve
organIzatIon wItb tbe InIIuence oI poIItIcs, admInIstratIon and
51
tecbnoIogy. Tbe IocaI autborItIes bave been pIaced In sucb a way tbat
botb as unIts oI IocaI seII-government and as agents oI government,
tbey may succeed In acbIevIng tbe optImum resuIts wItbout sacrIIIcIng
tbe basIc norms oI democracy. TbIs Is so because tbey conIorm to tbe
two cardInaI objectIves oI pubIIc admInIstratIon; eIIIcIent perIormance
and responsIbIe perIormance. InItIaIIy, IocaI government may Iace
some probIems, but wItb tbe attaInment oI maturIty, IocaI government
may produce resuIts tbat may combIne tbe best oI tbe two worIds,
democratIc and bureaucratIc.
24
S) GeograpbIcaI
WItb terrItorIaI jurIsdIctIon over a partIcuIar buman babItatIon,
tbe IocaI government may be conceptuaIIsed In geograpbIcaI terms.
Tbe Geograpby IncIudes, tbe Ieatures IIke
6) LegaI
Tbe IegaI dImensIon oI tbe LocaI Government presents two
tbIngs one, It Is tbe agent oI state and as mucb, represents pubIIc
24 M.A. MuttaIIb, Democracy, Bureaucracy and TecbnoIogy", New DeIbI, Concept
PubIIsbIng Company, 19S0, pp. 60-61.
52
Interest. In tbe capacIty oI tbe agent oI state, It exercIses a part oI tbe
sovereIgnty oI tbe state deIegated to It wItbIn Its geograpbIcaI
boundarIes. Two, It Is a seII-governIng InstItutIon. In tbIs capacIty, It
must exbIbIt tbree quaIIIIcatIons, wbIcb are expIaIned as: -
In NutsbeII, It can be poInted out tbat IegaIIy, tbe IocaI
autborItIes can be descrIbed as creatures oI government. Not onIy
tbIs, but, tbe contentIon tbat IocaI seII-government Is an Inberent
rIgbt oI IocaI peopIe Is no Ionger beId vaIId. Tbe deveIopIng countrIes,
tbat Iack wrong tradItIons Ior grassroots democracy do not present a
bappy pIcture
2S
In IndIa, tbe IocaI bodIes bave been dIssoIved or
superseded IrequentIy. TbIs sbows tbe tendency oI tbe bIgber IeveI oI
government to destroy Its own creatures. Tbe need oI tbe bour Is to
2S R.W. Maddox, and otbers, State and LocaI Government", Canada, 1962, p.
44S.
53
provIde some constItutIonaI saIeguards untII IavorabIe democratIc
tradItIons strIke roots.
(I) LOCAL AUTHORITIES UNDER ARTICLE - 12
ArtIcIe 12 oI tbe constItutIon oI IndIa deIInes tbe term state Ior
tbe purpose oI IundamentaI rIgbts contaIned In part-III oI tbe
constItutIon wbIcb says tbat IocaI autborIty IncIudes a state. Tbe saId
constItutIonaI provIsIon bas been upbeId by tbe Hon'bIe Supreme
Court In tbe case Ros1d Amed u. Mun1o1po111g Boord,
Ro1rono
26
and A]11 S1ng V. S1o1e o] Pun]ob
2?
wbereby It bas been
saId tbat munIcIpaIIty and Gram Pancbayats are IocaI autborItIes
respectIveIy agaInst wbom IundamentaI rIgbts can be enIorced. Tbe
Supreme Court bas Iurtber In tbIs context IaId down tbe dIstInctIve
attrIbutes and cbaracterIstIcs oI LocaI AutborIty In Un1on o] 1nd1o u.
RC Jo1n.
2S
. Tbese are:
Tbe autborIty must bave separate IegaI exIstence as corporate
bodIes.
It must IunctIon In a deIIned area and must ordInarIIy, wboIIy
or partIy, dIrectIy or IndIrectIy be eIected by tbe InbabItants oI
tbe area.
It must enjoy a certaIn degree oI autonomy, wItb Ireedom to decIde
Ior ItseII, questIons oI poIIcy aIIectIng tbe area admInIstered by It.
26 AIR 19S0 SC 163.
2? AIR 196? SC SS6.
2S AIR 19S1 SC 9S1.
54
It must be entrusted by statute wItb sucb governmentaI
IunctIons and dutIes as are usuaIIy entrusted to munIcIpaI
bodIes.
It must bave tbe power to raIse Iunds Ior Iurtberance oI Its
actIvItIes and IuIIIIIment oI Its projects by IevyIng taxes, rates,
cbarges and Iees.
Tbus, IundamentaI rIgbts are avaIIabIe agaInst tbe IocaI bodIes
and can be enIorced tbrougb court oI Iaw.
(II) WHETHER A MUNICIPALITY OR PANCHAYAT IS A PERSON
WITH IN THE MEANING OF ARTICLE - 14
A reIerence to tbe above questIon assumes sIgnIIIcance In vIew
oI tbe IuII bencb decIsIon In Mo11 Lo1 u. s1o1e o] U.P.,
29
Reso
Prosod u. S1o1e,
30
S1u Prosod u. S1o1e o] Pun]ob
SJ
and
Amroo11o 1eo1r1o Supp1g Co. u. D1s1r1o1 & Sess1on Judge,
Amroo11o
S2
. Tbougb, none oI tbem raIsed tbe questIon wbetber Is
reIatIon to Impugned Iaw oI one state, otber states aIIected by tbat Iaw
couId be treated as persons wItb In tbe meanIng oI ArtIcIe 14 oI
constItutIon oI IndIa. But, tbese cases made a dIstInctIon between tbe
tradIng actIvItIes oI a state and Its governmentaI actIvItIes, apparentIy
boIdIng tbat as regards governmentaI actIvItIes, a state was not a
person.
29 (19S1) (I) AII 269, (S1) AA 2S? (FB).
30 (19SS) Nag. 4S9, (SS) AN 1??.
31 (19S?) Punjab. 310 (S?) A. Punj. 1S0.
32 (19S2) Nag. S30 (S3) An. 3S.
55
It Is submItted tbat tbe powers, rIgbts, dutIes and obIIgatIons oI
a state are unIIke tbose oI any otber person, naturaI or IegaI Is not
reIevant to tbe questIon wbetber tbe state Is a person, just as tbe Iact
tbe one corporatIon possesses extensIve and anotber IImIted powers Is
not reIevant to tbe questIon wbetber tbey are botb corporatIons. II tbe
state bas rIgbts and obIIgatIons tbat are unIque, tbat onIy means tbat
tbe state Is a unIque person and tbat Ior tbe purpose oI ArtIcIe 14 In
most sItuatIons. II not In aII, tbe state wIII be a cIass In ItseII.
33
In
terms oI tbe above anaIogy, It Is submItted tbat tbe IocaI bodIes IIke
corporatIons, munIcIpaIItIes and pancbayats constItute a unIque
person and tbat Ior tbe purpose oI ArtIcIe 14 In most sItuatIons II not
In aII, tbe IocaI bodIes, wIII be a cIass In ItseII.
FORMS OF URBAN LOCAL GOVERNMENT
Tbe number oI urban LocaI Government bas been IncreasIng as
a resuIt oI Increase In urban and suburban popuIatIon. Tbe IoIIowIng
tabIe sbows tbe varIous Iorms oI urban government.
Sr. No. Form oI Urban LocaI Government
1. MunIcIpaI CorporatIons
2. MunIcIpaI CouncIIs
3. NotIIIed Area CommIttees
4. Town Area CommIttees
S. Cantonment Boards
6. TownsbIps.
33 H.M. SeervaI, ConstItutIonaI Law oI IndIa", VoI. 1, Fourtb EdItIon, 1991, p. 44?.
56
CHARACTERISTICS OF LOCAL GOVERNMENTS
Tbe dIscussIon regardIng meanIng oI IocaI government makes It
cIear tbat tbere are certaIn cbaracterIstIcs on wbIcb tbe systems oI
IocaI government are based. Some oI Its Important cbaracterIstIcs are
as IoIIows: -
(I) LocaI Areas: - A LocaI Government unIt as Iar as Its jurIsdIctIon
Is concerned bas a weII deIIned area wbIcb Is IIxed by tbe
concerned state government. TbIs area can be termed as a cIty,
a town or a vIIIage. Tbe terrItorIaI IImIts oI a IocaI body unIt are
IIxed by tbe state government subject to cbanges Irom tIme to
tIme tbrougb IegIsIatIon.
(II) LocaI AutborIty: - Tbe admInIstratIon oI a partIcuIar IocaIIty Is
run by an autborIty or body oI persons wbo are eIected dIrectIy
by tbe peopIe resIdIng In tbat partIcuIar area. Tbe autborIty
wbIcb IncIudes tbe eIected representatIves oI tbe peopIe Is
responsIbIe Ior management oI IocaI aIIaIrs In tbat area.
(III) CIvII AmenItIes For LocaI InbabItants: - Tbe PrImary objectIve
oI LocaI Government Is to provIde certaIn cIvIc amenItIes to tbe
peopIe at tbeIr door-steps. Tbe provIsIon oI tbese cIvIc amenItIes
ensures tbe beaItby IIvIng oI IocaI communIty. Tbese servIces
are specIIIcaIIy meant Ior tbose InbabItants wbo are IIvIng In
tbat restrIcted area Ior wbIcb tbe IocaI government unIt bas
been created. It bas been rIgbtIy poInted out tbat aII tbese
57
amenItIes wbIcb make IIvIng better, pbysIcaIIy, economIcaIIy,
socIaIIy and cuIturaIIy sbouId be assIgned to tbe IocaI
InbabItants.
(Iv) LocaI FInance: - In order to perIorm Its IunctIons eIIectIveIy, It
Is necessary tbat every IocaI government unIt Is provIded wItb
adequate IInances. Tbe servIces provIded to tbe IocaI
InbabItants are IargeIy IInanced out oI IInances raIsed IocaIIy.
Tbe IocaI InbabItants are requIred to pay taxes Imposed by tbe
concerned IocaI autborIty. It Is tbe autborIty oI IocaI
government. However, unIIke otber IeveIs oI government tbat
accords It a unIque posItIon among corporate bodIes, tbIs
autborIty bas IegaI and constItutIonaI basIs.
34
InIact, tbe IocaI
government possesses revenue raIsIng and spendIng autborIty
onIy to tbe extent tbat tbe stateJcentraI government grants It to
tbem.
(v) LocaI Autonomy: - LocaI Autonomy means tbe Ireedom oI tbe
IocaI government to decIde and act In tbe spbere oI actIvItIes
and IunctIons aIIotted to tbem by tbe statute under wbIcb tbey
are created. Among otber tbIngs, It ImpIIes tbe IegaI rIgbt oI tbe
InbabItants oI a IocaI area to cboose tbeIr representatIves to
govern tbe IocaIIty concerned, accordIng to tbe Iaws Iramed by
tbe IocaI councII and to adopt tbe budget. It Is bowever, to be
34 O.P. SrIvastva, MunIcIpaI Government and AdmInIstratIon In IndIa, AIIababad,
Cbugb PubIIcatIons, 19S0, p. 1.
58
understood tbat tbe autborItIes wbIcb bave been gIven tbe
responsIbIIIty to run tbe IocaI government are neItber sovereIgn
nor seII-created entItIes and tbey wIII bave to depend upon tbe
bIgber IeveIs oI government Ior tbeIr creatIon, rank, powers and
IunctIons.
(vI) LocaI PartIcIpatIon: - Tbe success or IaIIure oI deveIopmentaI
pIans at tbe IocaI IeveI depends upon tbe actIve partIcIpatIon oI
IocaI peopIe Ior wbom tbese pIans are made. It Is a IocaI
government wbIcb provIdes an opportunIty to tbe IocaI peopIe to
partIcIpate In admInIstratIon. II tbe goaIs oI deveIopment bave to
be acbIeved, peopIe's partIcIpatIon Is a pre-requIsIt Ior It.
(vII) LocaI LeadersbIp: - Tbe peopIe wbo come under tbe purvIew oI
IocaI government, especIaIIy tbose IIvIng In ruraI areas, are
generaIIy IIIIterate, InexperIenced, non-proIessIonaI and
unaware about tbe IunctIonIng oI IocaI bodIes. Strong
IeadersbIp tbereIore needs to be provIded to tbose peopIe. TbIs
IeadersbIp Is provIded to tbe peopIe Irom tbe IocaI area In tbe
sbape oI eIected representatIves and eIected oIIIce bearers oI tbe
eIected councIIs In regard to tbe poIIcIes and programmes oI tbe
government.
(vIII) LocaI AccountabIIIty: - LocaI Government unIts wbIcb are
created to provIde cIvIc amenItIes to tbe peopIe are accountabIe
to tbe IocaI peopIe. Tbe resIdents oI a IocaI area keep a watcb on
59
IocaI autborItIes to ensure eIIectIve perIormance oI tbeIr
IunctIons. II a IocaI body becomes IneIIIcIent and Is not In a
posItIon to provIde satIsIactory servIces to tbe peopIe, It Iaces
severe crItIcIsm oI IocaI resIdents.
(Ix) LocaI DeveIopment: - LocaI Government Is concerned wItb
tbe overaII deveIopment oI tbe peopIe IIvIng wItbIn Its area.
Every actIvIty oI IocaI government Is tbereIore aImed at
deveIopment.
To sum up, It can be poInted out tbat In spIte oI tbe IegaI
autborIty gIven to tbe IocaI governments; tbe ImpoverIsbed state oI tbe
IInances oI most autborItIes In tbe deveIopIng countrIes Is a severe
bandIcap to responsIbIe IocaI government sInce tbe backbone oI IocaI
government Is IInancIaI autonomy.
3S
Tbat Is wby In IndIa sInce
Independence, tbe IocaI IInance bas been crItIcaI In IocaI government
reIorms.
36
SeveraI CommIssIons bave been appoInted excIusIveIy on
tbe probIems oI IocaI IInance sInce Independence botb by tbe centraI
and state governments.
DISTINCTION BETWEEN LOCAL GOVERNMENT AND LOCAL SELF
GOVERNMENT
LocaI Government and LocaI SeII-government In our country Is
generaIIy known as IocaI seII government. Tbe terms IocaI seII
3S UnIted NatIons, CentraI ServIces to LocaI AutborItIes", Tbe Hague, 1962,
pp. 14-1S.
36 UnIted NatIons, LocaI Government ReIorms, AnaIysIs oI ExperIence In
SeIected CountrIes", New York, 19?S, p. S3.
60
government Is a Iegacy oI tbe BrItIsb RuIe wben tbe country dId not
bave seII government eItber at tbe state or centraI IeveIs. Wben tbe
BrItIsb government decIded to assocIate IndIans In admInIsterIng IocaI
aIIaIrs, It meant a sIIce oI seII government Ior tbe peopIe. But now tbe
word 'seII' bas become superIIuous or redundant because tbe country
bas seII ruIe at aII IeveIs. Moreover, IocaI bodIes IIke DeIbI MunIcIpaI
CorporatIon and urban Improvement trusts are not representatIve In
cbaracter, tbe use oI tbe term IocaI seII-government wIII not be proper.
DespIte tbIs dIstInctIon, botb tbe terms are contInued to be used
IntercbangeabIy In our country. Tbat Is wby tbe term IocaI
government and not IocaI seII government Is used In entry S oI tbe IIst
II oI tbe seventb scbeduIe oI constItutIon oI IndIa.
3?
Tbe terms IocaI
seII government Is a vaIue Iauded and vIrtuous, sometImes dIIIIcuIt to
justIIy wbIIe tbe term LocaI Government" Is moraI In nature and
preIerred to vIrtue embodyIng LocaI SeII-Government".
3S
From tbe
precedIng dIscussIon, tbe dIstInctIon between IocaI seII-government
and IocaI government can be presented specIIIcaIIy In tbe IoIIowIng
manner:-
I) Tbe LocaI SeII-government Is based on tbe prIncIpIe oI
decentraIIsatIon (wItbdrawaI Irom centre) wbereas IocaI
government Is based on tbe prIncIpIe oI deconcentratIon.
3? Tbe Entry S oI IIst II (State IIst) oI tbe seventb scbeduIe reads: LocaI
Government tbat Is to say, tbe constItutIon & powers oI munIcIpaI
corporatIons, Improvement trusts, DIstt. Boards, mInIng settIements
autborItIes and otber IocaI autborItIes Ior tbe purpose oI IocaI seII Government
or vIIIage admInIstratIon.
3S Supra note 22. p. 3S.
61
II) Tbe LocaI SeII-government, tbe cbaracter oI IocaI unIts Is
sInguIar because tbey are detacbed Irom state admInIstratIve
unIts as Is tbe practIce prevaIIIng In EngIand. But In IocaI
government, tbe unIts bave duaI cbaracter, as IocaI government
unIts and aIso state admInIstratIve unIts. Tbe Frencb
Communes In France are oI tbIs type.
III) In LocaI SeII-government, staII Is appoInted by and responsIbIe
to respectIve IocaI councII. Tbe IunctIonarIes do not bave
posItIon Independent oI tbe IocaI councII. However, In case oI
IocaI government, tbe oIIIcIaIs are appoInted by and responsIbIe
to centraI autborItIes. Tbe IocaI councIIs bave IIttIe dIscIpIInary
controI over tbem.
Iv) In IocaI seII government tbere Is a consIderabIe degree oI
autonomy In decIsIon makIng but, IocaI governments do not
enjoy IocaI Ireedom. To be more specIIIc, IocaI dIscretIon Is oI
very restrIctIve nature.
v) In IocaI seII government, tbe councIIs are eIectIve and
responsIbIe to tbe IocaI peopIe and Iaw. Tbe centraI autborItIes
do not bave tbe rIgbt to suspend, supersede or dIssoIve tbe IocaI
councIIs. In IocaI government too, tbe IocaI councIIs are eIected
wboIIy or partIaIIy by tbe IocaI councIIs are eIected wboIIy or
partIaIIy by tbe IocaI eIectorate, but tbe some are subject to
suspensIon, super sessIon or dIssoIutIon by tbe controIIIng
autborItIes.
62
To sum up, It Is quIte evIdent tbat tbe maIn assertIon oI tbe
dIIIerence between tbe two Is tbat tbe system Is based eItber on
decentraIIzatIon or deconcentratIon. However, tbe prevaIIIng sItuatIon
Is tbat no system Is based on eItber oI tbe two prIncIpIes excIusIveIy.
TbIs Iact bas aIso been bIgbIIgbted by Hermon F1ner. To bIm, tbe
mIxture oI botb produced tbe bIgb compIexIty oI modern IocaI (seII)
government. Tbere Is no system to wbIcb tbe tbeoretIcaI dIstInctIon
between LocaI Government and LocaI SeII Government may appIy as
sucb."
39
However, tbe sItuatIon Is tbat tbe term 'SeII Government'
appears to be embarrassIng, Ior It bas around ItseII a rIng oI vIrtue,
wbIcb It Is unnecessary to cIaIm and an occasIons, dIIIIcuIt to
justIIy.
40
Tbat Is wby It bas been rIgbtIy poInted out by S.R.
MabesbwarI tbat tbe term 'LocaI Government' beIng a moraI In
nature, Is to be preIerred to vIrtue embodyIng 'LocaI SeII-
Government".
NATURE AND SCOPE OF URBAN LOCAL GOVERNMENT
MunIcIpaI government and admInIstratIve Is no Ionger a sImpIe
aIIaIr. It bas become quIte compIIcated and compIex wItb tbe
pbenomenaI Increase In tbe process oI urbanIzatIon and consequent
spurt In tbe emergence oI tbe urban probIems and tbe Increase In
tbeIr IunctIon. In tbe post Independence perIod, It was envIsaged tbat
In tbe new set up IocaI bodIes as Instrument oI natIonaI poIIcy wouId
39 Herman FIner, EncycIopedIa BrItannIca, p. 1S0.
40 Supra Note 3S. p. 60.
63
be used more and more and tbere wouId be steady Increase In tbeIr
IunctIons.
41
Tbe scope oI IocaI governments bas tbus become very
wIde and IncIudes numerous areas In Its spbere oI study. Tbe
IoIIowIng areas can be easIIy dIscerned wbIcb constItute tbe subject
matter oI Its study.
(I) UrbanIsatIon and Urban ProbIems
Tbe process oI urbanIzatIon In IndIa Is goIng on at an
acceIerated pace due to IndustrIaIIzatIon, mIgratIon Irom ruraI areas
and tbe naturaI Increase In popuIatIon due to popuIatIon expIosIon
wItb tbe resuIt tbat tbe urban popuIatIon wbIcb constItuted S0 mIIIIon
at tbe tIme oI Independence bad reacbed 3S0 mIIIIons by tbe end oI
Iast century. Tbe growtb oI urbanIzatIon on sucb an unprecedented
scaIe bas conIronted urban governments wItb gIgantIc urban
probIems sucb as unpIanned and bapbazard growtb oI towns and
cItIes, unbearabIe straIn on urban governments Ior provIsIon oI cIvII
amenItIes, traIIIc congestIon, growtb oI sIums, sbortage oI bouses,
scourge oI urban poverty, menace oI poIIutIon, Iack oI empIoyment
opportunItIes etc.
(II) Structure oI Urban Governments
Tbe IocaI aIIaIrs oI cItIesJtowns are to be admInIstered by IocaI
InstItutIon oI varIous Iorms sucb as Nagar Pancbayats, MunIcIpaI
CommIttees, MunIcIpaI corporatIons and cantonment Boards, eacb
urban areas to be assIgned tbe Iorm oI IocaI government It deserves by
41 Report oI Punjab LocaI Government (Urban) EnquIry CommIttee, (19S?) p. 9S
64
vIrtue oI tbe crIterIa IaId down In terms oI Its popuIatIon, terrItorIaI
dImensIons and revenue resources, dependIng on tbe sIze oI tbeIr
popuIatIon and tbe IInancIaI vIabIIIty as provIded In tbe constItutIon
(?4
tb
Amendment) Act, 1992.
(III) MunIcIpaI LegIsIatIon
LocaI government beIng a state subject Is created by tbe
concerned state IegIsIature, wbIcb enacts approprIate Iaws
determInIng Its status and provIdIng Ior tbe constItutIon oI tbe eIected
councIIs, co-optIon and nomInatIon oI members, procedure oI eIectIon,
term oI tbe councII, eIectIon and removaI oI oIIIce bearers, tbeIr
powers and IunctIons, IInances, state controI etc. Tbe varIous Acts are
aIso amended Irom tIme to tIme In tbe IIgbt oI tbe cbangIng need, oI
tbe urban government.
(Iv) MunIcIpaI PersonneI Management
Tbe urban governments wItb tbeIr enIarged responsIbIIItIes and
compIIcated IInancIaI, tecbnIcaI and admInIstratIve probIems requIre
eIIIcIent and weII quaIIIIed personneI to varIous posItIons. Tbey can be
attracted to munIcIpaI servIces onIy wben tbey are seIected on merIt,
gIven saIarIes, avenues oI promotIon and otber condItIons oI servIce
comparabIe to tbose avaIIabIe to tbeIr counter-parts In otber
government departments, tbe provIncIaIIsatIon oI munIcIpaI servIces
In varIous states bas no doubt, Improved matters to great extent but It
wouId be desIrabIe to merge tbe state cadres oI munIcIpaI servIces In
65
correspondIng state cadres. TbIs wouId not onIy gIve a psycboIogIcaI
boost tbe IocaI bodIes personneI but tbe bomogeneIty between tbe
state government and IocaI government source wIII aIso raIse tbe IeveI
oI IocaI perIormance.
(v) MunIcIpaI FInance AdmInIstratIon
MunIcIpaI governments In order to be vIabIe requIre IInances
commensurate wItb tbeIr responsIbIIItIes and obIIgatIon but
unIortunateIy tbey suIIer Irom acute paucIty oI Iunds. Tbe urban
governments bave not sbown mucb aptItude Ior eIIIcIent IInancIaI
management and controI tbere Is wastage, tbere are Ieakages oI
revenues, tbere Is extensIve under assessment, severaI source oI
Income bave not been tapped, InabIIIty bas been sbown to Impose new
taxes or Increase tbe exIstIng ones. Tbe state IInance commIssIon
provIded In tbe constItutIon (?4
tb
Amendment) Act, 1992 wIII ensure
tbe IInancIaI vIabIIIty oI tbe urban IocaI bodIes on tbeIr
recommendatIon beIng accepted by state government.
(vI) State ControI over Urban Governments
Tbe state governments exercIse supervIsIon and controI over
urban governments to ensure mInImum standard oI servIces and
proper perIormance oI tbeIr IunctIons tbrougb IegIsIatIve,
admInIstratIve and IInancIaI controI. Tbe urban governments are
subject to judIcIaI controI, aIso Ior tbeIr acts or omIssIon and
commIssIon. Urban centers contrIbute ImmenseIy to natIonaI
66
prosperIty. Tbe centraI and state governments sbouId tbereIore act as
tbeIr IrIends and beneIactors and not as tbeIr powerIuI rIvaIs or
dIsInterested spectatIon.
(vII) SpecIaI Purpose AgencIes
Tbe state governments on tbe pretext oI InadequacIes oI
IInancIaI resources, Lack oI tecbnIcaI expertIse and IneIIIcIency In tbe
perIormance oI tbe obIIgatory IunctIon by urban IocaI governments,
create certaIn specIaI unI-purpose or muItI purpose agencIes to
perIorm IunctIon wbIcb IegItImateIy beIong to tbe domaIn oI urban
IocaI governments. Tbese agencIes IncIude Improvement trusts, water
suppIy and sewage Boards, HousIng Boards, PoIIutIon ControI Boards
etc. Tbe study oI tbese urban InstItutIons regardIng tbeIr constItutIon
IunctIon, power, IInances and tbeIr reIatIonsbIp wItb tbe urban
governments and tbeIr perIormance Iorms an Important segment oI
tbe scope oI urban IocaI governments.
(vIII) Urban Town PIannIng
Tbe pbenomenon oI urban growtb bas resuIted, In unpIanned,
bapbazard and ugIy urban settIements. PIannIng Is tbereIore
necessary to combat tbe menace oI urbanIzatIon and Its resuItant
probIems. An Important IunctIon oI pIannIng In pureIy pbysIcaI terms
Is tbe judIcIous use oI Iand a scarce commodIty In most urban areas,
and Its ratIonaI and tImeIy reservatIon Ior Iuture use. Roads bave to
be wIdened, new ones buIIt, sItes are requIred Ior scbooIs, bospItaIs,
parks and pIay grounds, bousIng, Industry, sboppIng, communIty
67
IacIIItIes and a number oI otber uses Iand pIannIng Is tbus a very
essentIaI need.
(Ix) MInIstry oI Urban DeveIopment and Its Attacbed and
SubordInate OIIIces
Tbe centraI mInIstry oI urban deveIopment set up In 19SS
now known as mInIstry oI urban aIIaIrs and empIoyment bas tbe
responsIbIIIty oI broad IormuIatIon and monItorIng oI programmes
In tbe area oI urban deveIopment, bousIng, urban poverty
aIIevIatIon and urban water suppIy. Tbese are essentIaIIy state
subjects but tbe Govt. oI IndIa pIays a coordInatIng and monItorIng
roIe and aIso supports tbese programmes tbrougb centraI sector
scbemes, InstItutIonaI IInance and expertIse. Tbe attacbed oIIIces
oI tbe MInIstry oI urban aIIaIrs and empIoyment are centraI pubIIc
works Department. DIrectorate oI PrIntIng, DIrectorate oI Estates,
NatIonaI BuIIdIng organIsatIon and Its subordInate oIIIces comprIse
Iand and controIIer DeveIopment oIIIce, town and country pIannIng
organIsatIon, controIIer oI statIonery and controIIer pubIIcatIon.
Tbe constItutIon and IunctIon oI aII tbese, InstItutIons wouId Iorm
a part oI tbe study oI tbose Interested In urban and IocaI
governments.
(x) Reports oI CommIssIon and CommIttees
Tbe government oI IndIa bas been constItutIng commIssIons
and commIttees Irom tIme to tIme Ior studyIng varIous urban Issues
and Ior makIng recommendatIon Ior tbeIr soIutIon and passIng
68
number oI resoIutIon In respect oI munIcIpaI governments. Tbe most
promInent among tbem In tbe pre-Independence perIod bave been:
RoyaI Army sanItatIon commIssIon (1S63), Iord RIpon's ResoIutIon on
IocaI-seII Government (1SS2), RoyaI commIssIon on DecentraIIsatIon
(1909), Government oI IndIa ResoIutIon (191S), taxatIon enquIry
commIssIon on IocaI taxatIon and IocaI government (192S), IndIan
statutory commIssIon on IocaI seII-government (1929). In post
Independence perIod Important CommIttees are: LocaI IInance enquIry
commIttee (19S0), taxatIon enquIry commIttee (19S3) RuraI-urban
ReIatIonsbIp commIttee (1963), AdmInIstratIve ReorganIzatIon
commIttee (1966-?0) and tbe Iatest natIonaI commIssIon on
urbanIzatIon (19SS). SImIIarIy, tbe state governments bave aIso been
appoIntIng commIttees to Iook Into tbeIr urban aIIaIrs. Tbe study oI
tbese reports wouId constItute on Integrated part oI tbe scope oI
urban IocaI governments.
(xI) SemInars and ConIerences
Tbe centraI councII oI IocaI seII government bas been organIzIng
a number oI conIerences and semInars most notabIe oI wbIcb are tbe
AnnuaI conIerences oI state MInIsters oI IocaI seII government and
town and country pIannIng oI mayors and corporatIon members. Tbe
erstwbIIe MInIstry oI urban deveIopment convened conIerence oI
munIcIpaI executIve oIIIcers and NagarpaIIka sammeIans on tbe eve oI
tbe IormuIatIon oI NagarpaIIka BIII In, 19S9. SImIIarIy tbe state
69
government aIso boId conIerences oI presIdents and councIIors oI
munIcIpaIs bodIes and oI tbeIr executIve autborItIes. Tbe urban
RegIonaI centers and varIous coIIeges and unIversItIes boId semInars
on varIous tbemes oI urbanIzatIon and admInIstratIon oI urban areas.
A study oI tbe proceedIngs oI tbese semInars are oI consIderabIe
advantage to tbe oIIIcIaIs oI urban governments.
(xII) MunIcIpaI ReIorms
Tbe centraI government and state governments In tbeIr concern
to Improve urban governments bave been consIderIng tbe
recommendatIons made by varIous commIssIons and commIttees In
tbeIr respectIve reports and takIng approprIate actIon In acceptIng and
ImpIementIng tbem by enactIng requIred IegIsIatIon wItb a vIew to In-
corporate tbe necessary cbanges Ior tbe Improvement oI tbe
constItutIon and IunctIonIng oI urban IocaI bodIes. Among tbe
numerous sucb attempts made as a sequence oI tbe reports oI tbe
commIssIons and commIttees reIerred above tbe IntroductIon oI
NagarpaIIka BIII (19S9) In tbe parIIament wbIcb IncIuded provIsIons oI
great sIgnIIIcance Ior restructurIng and revampIng urban IocaI
governments Is oI greater Importance. Tbe BIII was sInce rejected by
Rajya Sabba, It bad agaIn been presented In 1991 and was passed as
tbe constItutIon (?4
tb
Amendment) Act, 1992. It bas usbered In an era
oI substantIaI reIorms In urban IocaI government.
70
(xIII) MunIcIpaI Bureaucracy
Tbe state Bureaucracy Is endowed wItb vast power In tbe
admInIstratIon oI urban IocaI bodIes. Deputy commIssIoners despIte
tbe creatIon oI DIrectorate oI IocaI BodIes and tbe oIIIce oI RegIonaI
Deputy DIrectors stIII pIay a predomInant roIe In tbe management oI
urban aIIaIrs. Tbe admInIstrator appoInted to admInIster a
superseded IocaI bodIes as tbe deIIberatIve and executIve autborIty.
Tbe munIcIpaI bureaucracy especIaIIy tbe munIcIpaI commIssIoner In
munIcIpaI corporatIon Is key IIgure In tbeIr admInIstratIon and enjoys
greater autborIty In comparIson to tbe eIected Mayor wbo represents
tbe eIected body oI tbe cIty.
(xIv) AssocIatIons and UnIons oI MunIcIpaI EmpIoyees
MunIcIpaI empIoyees organIze tbemseIves In unIon at tbe IocaI,
state and natIonaI IeveIs Ior tbe Iurtberance oI tbeIr Interests and boId
protest meetIngs and demonstratIons to put Iortb tbeIr demands In a
IorceIuI way and to get tbese accepted by tbe concerned munIcIpaI
and state autborItIes by resortIng to strIkes causIng unavoIdabIe
InconvenIences to tbe pubIIc. Tbe agItatIonaI approacb bas proved to
be successIuI, many a tIme, In gettIng tbeIr demands accepted tbe
Iatest ones beIng tbe grant oI pensIonery beneIIts and gratuIty to
tbem.
Tbe presIdent oI munIcIpaI commIttees and Mayors oI munIcIpaI
corporatIons aIso constItute tbeIr assocIatIon Ior tbe promotIon oI
tbeIr Interests.
71
(xv) RoIe oI PoIItIcaI PartIes
DespIte tbe Iact tbat IocaI Issues sbouId not be decIded on
partIsan basIs, poIItIcaI partIes partIcIpate In urban governments by
puttIng up tbeIr candIdates In eIectIon and party symboIs are aIIotted
to tbem by tbe eIectIon autborItIes, Ior eIectIons as to munIcIpaI
corporatIons and munIcIpaI commIttees In some states and tbe
wInnIng poIItIcaI partIes eIect tbeIr own mayors and cbaIrman oI
munIcIpaI corporatIonJcommIttee.
(xvI) Researcb and EvaIuatIon
Researcb and evaIuatIon oI urban poIIcIes, strategIes and
programme Is oI vItaI Importance In tbe study oI urban governments.
Tbe centraI and state governments make provIsIons Ior tbese
actIvItIes. VarIous unIversItIes conduct researcb oI dIIIerent probIems
oI urbanIzatIon and management oI urban areas. TbeIr IIndIngs can
be utIIIzed In tbe IormuIatIon oI urban poIIcIes sucb as natIonaI
urbanIzatIon poIIcy, NatIonaI HousIng PoIIcy etc. Tbe evaIuatIon oI tbe
programmes Introduced Ior Improvement oI urban areas and tbe IIvIng
condItIon oI tbeIr resIdents enabIes tbe concerned governments to
make necessary modIIIcatIon and aIteratIon In tbem to make tbem
more eIIectIve.
(xvII) ComparatIve Urban LocaI Government
ComparatIve study makes It possIbIe to examIne tbe extent to
wbIcb soIutIon adopted abroad may be taken advantage oI at bome. In
72
tbIs context, tbe IocaI government system oI EngIand (maxImum
autonomy to IocaI governments) USA (decentraIIsatIon) and France
(wbIcb was once over centraIIzed Is sInce In tbe process oI
decentraIIsatIon) are oI sIgnIIIcant Importance to tbe study oI urban
IocaI government In one country.
EvIdentIy tbe unIverse oI urban IocaI government Is very vast,
Its scope Is very wIde and comprebensIve, encompassIng every
conceIvabIe Issue concernIng urbanIzatIon, urban growtb, urban
deveIopment and redeveIopment, urban InIrastructure, provIsIon oI
urban basIc servIces, urban pIannIng and urban management. Tbe
nature and scope oI tbe study oI urban governments Is bound to
Increase wItb tbe unabated pace oI urbanIzatIon and tbe growIng
compIexItIes oI urban probIems wItb tbe advancement oI scIence and
tecbnoIogy.
IMPORTANCE OF LOCAL GOVERNMENT
Tbe Importance oI IocaI government IIes In sustaInIng tbe
democracy. II democracy bas to IunctIon properIy as many cItIzens as
possIbIe sbouId be encouraged and provIded wItb opportunItIes to
take a contInuIng Interest In Its actIvItIes and probIems. In a
democracy, peopIe bave to work wItb great patIence and perseverance.
In tbe Iong run, we may IInd tbat tbe progress acbIeved under sucb
democratIc metbods Is more IIrm and more soIId tban under
totaIItarIan set up. PeopIe sbouId bave IaItb In democracy and Is IIke
reposIng IaItb In tbemseIves. SInce IaItb sustaIns peopIe's patIence,
73
peopIe can acquIre tbIs IaItb more easIIy tbrougb experIence oI
workIng In democratIc InstItutIons. Our IIrst PrIme MInIster Pt.
JawabarIaI Nebru, wbIIe InauguratIng tbe IIrst IocaI seII-government
MInIsters, conIerence In 194S, bad saId tbat "IocaI seII government Is
and must be tbe basIs oI any true systems oI democracy. We bave got
ratber Into tbe babIt oI tbInkIng democracy at tbe top may not be
success unIess you buIId on Its IoundatIon Irom beIow.
42
Tbe Importance oI IocaI government may be dIscussed under tbe
IoIIowIng beads:
I) ScbooI oI Democracy
Tbe Success oI natIonaI democracy IargeIy depends upon tbe
success oI democracy at tbe grass-root IeveI. Tbe proposItIon tbat seII-
governIng IocaIItIes are tbe cItadeIs and scbooIs oI democracy, bas
been stressed by an advIsory commIttee oI tbe commIssIon on Inter
governmentaI ReIatIons (U.S.A):-
LocaI governments are to totaI government
wbat basIc tIssues are to buman body
wItbout tbe government wouId bave no
vItaIIty. Tbe countrIes, cItIes, towns, vIIIages
and borougbs serve as traInIng scbooIs Ior
tbe Ieaders oI government, and In tbe aIIaIrs
oI IocaI government are trIed tbose wbo aspIre
to state and natIonaI oIIIces."
43
42 JawabarIaI Nebru's address to tbe conIerence oI provIncIaI LocaI Government
MInIsters, 194S.
43 Anwar HussaIn Syed, Tbe poIItIcaI tbeory oI tbe AmerIcan LocaI government",
New York, Random House, 1969, p. 93.
74
SymboIIzIng democracy by IocaI government G.D.H. Co1e poInts
out: "Democracy Is notbIng unIess It means, In tbe Iast report, IettIng
tbe peopIe bave tbeIr own way, not onIy In tbe mass, by means oI an
aggregate vote In a natIon wIde scaIe, but aIso In tbeIr Iesser groups
and socIetIes oI wbIcb tbe grater socIetIes are made up and tbrougb
wbIcb It Is made artIcuIate In sucb a way tbat tbe Iess cIamorous
voIces can be beard".
44
II) PIatIorm Ior PoIItIcaI and PopuIar EducatIon
Lord RIpon's ResoIutIon oI 1SS2 empbasIzed tbe need oI
poIItIcaI and popuIar educatIon tbrougb IocaI government. It Is not
prImarIIy wItb a vIew to Improvement In admInIstratIon tbat tbeIr
measure Is put Iorward and supported. It Is cbIeIIy desIgned as an
Instrument oI poIItIcaI and popuIar educatIon. HIgbIIgbtIng tbe
Importance oI IocaI government as an educatIonaI InstItutIon. Pro]
1osK1 says. Tbe InstItutIon oI IocaI government Is educatIon In
perbaps a bIgber degree at Ieast contIngentIy, tban any otber part oI
government. And It must be remembered tbat tbere Is no otber way
oI brIngIng tbe mass oI cItIzens Into IntImate contact wItb persons
responsIbIe Ior decIsIons."
4S
LocaI government Is a system wbIcb
ensures eIIectIve partIcIpatIon oI cItIzens In admInIstratIon and
makes tbem reaIIse about tbeIr responsIbIIItIes towards tbe socIety.
44 G.D.H. CoIe, LocaI and RegIonaI Government", London, CasseII and Co. Ltd.
19?4, p. 64.
4S LaskI, HaroId, A grammar oI poIItIcs", London, George AIIen and UnwIn, 1961
p. 412.
75
III) Promotes SpIrIt OI LIberty And EquaIIty
Tbe IocaI assembIIes oI cItIzens says De Tocque VIIIe, add to tbe
strengtb oI Iree natIons. "Town meetIng are to IIberty wbat prImary
scbooIs are to scIence: tbey brIng It wItbIn tbe peopIe's reacb, tbey
teacb men bow to use and bow to enjoy It. A natIon may estabIIsb a
Iree government but wItbout munIcIpaI InstItutIons, It cannot bave tbe
spIrIt oI IIberty.
46
Tbe concept oI equaIIty bas many meanIngs but In
tbe context oI IocaI government It may enbance equaIIty by provIdIng
access to poIItIcaI oIIIce and poIItIcaI actIvIty Ior wIder groups oI
peopIe tban are accommodated tbrougb natIonaI poIItIcs.
4?
Iv) EIIectIve SoIutIon oI LocaI ProbIems
AII tbe probIems are not supposed to be soIved by tbe centraI
and state governments. In Iact, tbere are some probIems wbIcb occur
at tbe IocaI IeveI and need to be soIved IocaIIy In accordance wItb IocaI
needs, atmospbere, envIronment and wIsbes oI tbe peopIe. To be
acquaInted wItb aII tbese tbIngs, tbe government sbaII bave to step
down to tbe IocaI IeveI In order to soIve IocaI probIems In an eIIectIve
manner. AccordIng to H.J. LosK1 "we cannot reaIIze tbe IuII beneIIts oI
democratIc government, unIess we begIn by tbe admIssIon tbat aII
probIems are not controI probIems, and tbat tbe resuIts oI probIems In
46 AIexIs de TocquevIIIe, Democracy In AmerIca", tbe Hency Reeve Text PbIIIIps.
BradIey (edn.) New York, AIIred A-KnopI. 19S3, p. 61.
4? WIIIIam Hampton, LocaI Government and Urban PoIItIcs", (2nd Ed.) London
Logman, (1991), p. 3.
76
tbeIr IncIdence requIre decIsIon at tbe pIace and by tbe persons,
wbere and by wbom tbe IncIdence Is most deepIy IeIt.
v) ProvIdes CIvII ServIces
LocaI government InstItutIon perIorm numerous IunctIon to
provIde cIvII amenItIes to tbe InbabItants. Tbe servIces perIormed by
tbese bodIes IncIude garbage coIIectIon, cIeanIng oI streets, draInage,
eIectrIcIty, water suppIy, IIre servIces, beaItb servIce etc, are very
Important Ior good cIvII IIIe. Moreover R. Argo1 opInes tbat Irom tbe
pre-nataI days to even aIter deatb, tbe munIcIpaI InstItutIons serve us,
but we may be utterIy Ignorant oI tbe composItIon oI tbe town councII,
we reaIIse tbat Importance oI IocaI InstItutIon onIy wben Its servIces
tbe water suppIy, scavengIng etc. IaII.
4S
vI) Reduce tbe Burden oI Work oI StateJCentraI Government
A Iarge number oI IunctIons are perIormed by IocaI government
wbIcb otberwIse wouId bave been perIormed by centraIJstate
government. TbIs, IocaI government not onIy provIdes certaIn essentIaI
servIces to tbe peopIe, but aIso reduces tbe burden oI centraIJstate
government as weII. II tbe centraIJstate government In over Ioaded
wItb work, It becomes Incompetent, In capabIe and IneIIIcIent to
perIorm Its dutIes. TbereIore, IocaI government Is necessary Ior tbe
deveIopment oI InItIatIve and Interest oI IocaI masses In government
and responsIbIIIty. LocaI government Is an InvaIuabIe socIo-poIItIcaI
4S R. ArgaI, MunIcIpaI Government In IndIa", (2nd Edn.) AIIababad, 1960, p. 1.
77
Iaboratory Ior tryIng and testIng on a smaII scaIe, varIous new
proposaIs Ior government organIsatIon and socIo-economIc poIIcIes. It
Is a persevere oI IocaI coIurs In tbe natIonaI IIIe.
49
vII) Cbeck agaInst Bureaucracy
Tbe controI oI bureaucracy over tbe communIty Increases In tbe
absence oI a strong IocaI government system. A centraIIzed system oI
admInIstratIon, even tbougb democratIc, resuIts In controI oI tbe
communIty by bureaucracy. Tbe rIgId bebavIor oI bureaucrats IargeIy
eIIects tbe peopIe's InItIatIve and tbeIr conIIdence In tbe government.
Tbe transmIssIon oI powers Irom bureaucrats to democratIcaIIy
Iormed IocaI government bas posItIveIy cbecked tbe InIIuence oI
bureaucracy. VenKo1oroo bas rIgbtIy remarked, one oI tbe vIrtues oI
IocaI government Is tbe easy IntImacy and ready access to IocaI
government oIIIcIaIs."
vIII) LocaI Government Is EconomIcaI
Tbe perIormance oI any government wbetber centraI or IocaI
IargeIy depends upon avaIIabIIIty oI IInances. In perIormIng IunctIons
by IocaI government economy Is secured because IocaI IunctIons are
perIormed by IocaI autborItIes out oI tbe Iunds raIsed IocaIIy by
IevyIng taxes. Wben tbe IocaI peopIe are entrusted wItb tbe
management oI IocaI aIIaIrs, tbey wIII manage tbem at tbe Iowest cost
because tbey know tbat It Is tbeIr money wbIcb Is spent on IocaI
49 Ranney, AustIn, GovernIng oI man", New York, 19SS. p. 4S4.
78
servIces, tbereIore, tbey remaIn conscIous to make servIces more
economIcaI and avoId wastage.
Tbe WIddIcambe commIttee on tbe conduct oI IocaI AutborIty
BusIness summarIes tbe case tbus:-
Tbe vaIue oI IocaI government stems Irom Its tbree attrIbutes oI:
a) PIuraIIsm, tbrougb wbIcb It contrIbutes to tbe natIonaI poIItIcaI
system,
b) PartIcIpatIon, tbrougb wbIcb It contrIbutes to IocaI democracy,
c) ResponsIveness, tbrougb wbIcb It contrIbutes to tbe provIsIon oI
IocaI needs tbrougb tbe deIIvery oI servIces.
S0
Ix) TraInIng Ground Ior EmergIng Leaders
LocaI government Is aIso on InvaIuabIe traInIng ground Ior
emergIng Ieaders, wbo aIter acquIrIng experIence In tbe art oI poIItIcs
and government at tbe IocaI IeveI rIse as sucb to tbe state and
natIonaI IeveI. In our country IocaI governments bave produced many
Ieaders oI natIonaI emInence and stature IIke Ferozesbab Mebta
MotIIaI Nebru, JawabarIaI Nebru, Subbasb Cbandra Bose, VaIIabb
BbaI PateI, LaI Lajpat RaI etc, wbo are sbInnIng exampIes oI sober and
beaItby IocaI poIItIcs and restored to tbese IocaI InstItutIons, tbe
autborIty and dIgnIty tbey deserved.
S1
Tbese exampIes justIIy tbe
S0 Tbe conduct oI IocaI AutborIty BusIness "wIddIcombe" Report, HMSO, 19S6, p.
4?.
S1 P.R. DubbasbI In bIs Ioreward to S.L KausbIk's "LeadersbIp In urban
governments In IndIa, "AIIababad, KItab MabaI, 19S6.
79
maxIm tbat tbe best scbooI oI democracy and tbe best guarantee Ior
Its success Is tbe practIces oI IocaI government.
x) EIIIcIent and EIIectIve Management oI LocaI AIIaIrs
LocaI government beIng concerned generaIIy wItb tbe weIIare oI
tbe peopIe deaIs maInIy wItb tbese IunctIons wbIcb contrIbute to
socIo-economIc deveIopment oI tbe country. It beIng more conversant
and concerned wItb tbe IocaI probIems as compared to tbe
government In tbe capItaI, can manage tbe IocaI aIIaIrs more
eIIIcIentIy and eIIectIveIy.
xI) CbanneI oI CommunIcatIon between tbe State Government
and tbe CommunIty
LocaI government serves as a cbanneI oI communIcatIon
between state government and tbe communIty. Tbe demands made by
tbe IocaI communIty are on tbe one band transmItted to tbe state
government, tbe creator oI IocaI government and on tbe otber band,
peopIe IIvIng In Iar IIung areas come to know about tbe government
poIIcIes and programmes tbrougb IocaI bodIes. TbIs, IocaI government,
ensures cIose reIatIonsbIp between tbe peopIe and tbe bIgber IeveI oI
governments tbrougb tbe devIce oI communIcatIon.
xII) MItIgatIon oI tbe EvIIs oI Party System
PoIItIcaI partIes bave aIways InIIuenced tbe democracy not onIy
at tbe state and natIonaI IeveI, but at tbe IocaI IeveI as weII because It
Is not possIbIe Ior democracy to IunctIons wItbout tbe poIItIcaI partIes.
80
LocaI government In urban areas In EngIand bas been operatIng on
party IInes. But we In IndIa advocate tbe avoIdance oI partIcIpatIon oI
poIItIcaI partIes In IocaI bodIes as tbey brIng In tbe management oI
IocaI aIIaIrs, tbe evIIs usuaIIy attrIbuted to tbem sucb as
IunctIonaIIsm, groupIsm, IavorItIsm and nepotIsm. Tbe roIe oI poIItIcaI
partIes as sucb Is tbereIore not encouraged In IocaI governments and
tbus tbey are expected to remaIn Immune Irom tbe evIIs oI party
system.
CONCLUSION
LocaI government means tbe admInIstratIon oI tbe aIIaIrs oI a
IocaIIty In urban and ruraI areas by tbe peopIe tbrougb tbeIr eIected
representatIves. It may be descrIbed as government by popuIarIy
eIected bodIes cbarged wItb tbe admInIstratIon and executIve dutIes In
matters concernIng tbe InbabItants oI tbe partIcuIar dIstrIct or pIace
and vested wItb powers to make bye Iaws Ior tbeIr guIdance. Tbe
urban IocaI government operates In towns and cItIes tbrougb
MunIcIpaI CorporatIons, MunIcIpaI CommIttees, Cantonment Boards,
Town and NotIIIed Area CommIttees.
Tbe scope oI urban IocaI government extends to tbe study oI tbe
pbenomenon oI urbanIzatIon and Its probIem, urban pIannIng,
structure oI urban governments and tbeIr cIassIIIcatIon, munIcIpaI
IegIsIatIon, personneI management, IInancIaI admInIstratIon, state
IocaI reIatIons, specIaI purpose agencIes, organIsatIon and IunctIon oI
81
tbe unIon MInIstry oI urban AIIaIrs and EmpIoyment and Its
subordInate and attacbed oIIIces, as aIso tbat oI tbe State
departments oI urban IocaI government; Report oI varIous
commIssIons and commIttees appoInted Irom tIme to tIme by tbe
centraI and state governments to study tbe varIous aspects oI tbe
workIng oI urban IocaI governments and tbe recommendatIon made by
tbem, munIcIpaI bureaucracy, roIe oI poIItIcaI partIes, researcb and
evaIuatIon and comparatIve urban IocaI governments.
In tbe case oI Mo1ro Doss Se11o u. So1e o] Pun]ob
S2
tbe
Punjab and Haryana HIgb Court beId tbat tbe Iack oI FInancIaI
resource was one oI tbe maIn reason Ior tbe ?4
tb
amendment oI tbe
constItutIon. It was made to provIde Ior tbe sound IInance oI
munIcIpaIItIes by securIng autborIzatIon Irom state IegIsIatures Ior
grant-In-aId Irom tbe consoIIdated Iund as aIso assIgnment to or
approprIatIon by tbe munIcIpaIItIes oI tbe revenues oI desIgnated
taxes, toIIs and Iees. Tbe IocaI bodIes are seen as InstItutIon oI seII
government. Tbe IegIsIature bas to make Iaws to endow tbem wItb
power and autborIty so as to be abIe to prepare pIans Ior economIc
deveIopment and socIaI justIce and to ImpIement scbemes. Even tbe
IInance commIssIon as constItuted under ArtIcIe 243-Y oI constItutIon
oI IndIa bas to revIew tbe IInancIaI posItIon oI tbe munIcIpaIItIes and
make recommendatIons regardIng tbe measures needed to Improve
S2 2002 (3) RCR (CIvII) S?1.
82
tbe IInancIaI posItIon. It bas Iurtber been beId by tbe Hon'bIe Court
tbat tbe constItutIon bas specIIIcaIIy amended In tbe year 1992 to
empower tbe states to make Iaws so as to ensure tbat tbe
munIcIpaIItIes become eIIectIve Instruments oI IocaI seII-government.
Part IX-A oI constItutIon oI IndIa cIearIy vIsuaIIzes tbe munIcIpaIItIes
as InstItutIon Ior economIc deveIopment and socIaI justIce, scbeduIe
12 enumerates tbe IunctIon tbat can be entrusted to tbe
munIcIpaIItIes.
Tbe sIgnIIIcance or Importance oI urban IocaI governments In
IndIa bas consIderabIy Increased In tbe post Independence era wItb
tbe InauguratIon oI tbe ConstItutIon embodyIng tbe prIncIpIes oI
democracy and WeIIare State and empbasIzIng upon tbe governments
In urban areas to promote socIaI and economIc deveIopment.