The 74Th Amendment: Empowering India's Local Governments

what is 74th amendment of indian constitution

The 74th Amendment Act of 1992 is a significant amendment to the Indian Constitution, mandating the establishment and devolution of powers to Urban Local Bodies (ULBs) or city governments as the fundamental unit of governance in cities and towns. This amendment is built on the principle of democratic power belonging to the people, aiming to strengthen local bodies and enhance transparency. It introduced Part IX-A, encompassing Articles 243P to 243-ZG, outlining the scheme for municipalities' establishment and function, including reservation of seats for Scheduled Castes and Scheduled Tribes and empowering them with legislative and implementation powers for economic development and social justice.

Characteristics Values
Year 1992
Effective Date 1 June 1993
Purpose To strengthen and improve transparency in local bodies, and to decentralise power to municipal organisations
Scope Applies to all states except Nagaland, Meghalaya, Mizoram and certain other areas
Local Bodies Urban local bodies (ULBs) or city governments are the lowest unit of governance in cities and towns
Power Devolution of powers to ULBs, with representatives elected regularly
Municipalities Granted constitutional status, falling under the Constitution's justiciable provisions
Types of Municipalities Nagar Panchayat, Municipal Council, Municipal Corporation
Composition of Municipalities All members are directly elected by the people of the municipal area
Ward Committees Consisting of one or more wards within the territorial area of municipalities with a population of 3 lakhs or more
Reservation of Seats Proportion of seats reserved for SC/ST should reflect their proportion of the population in the municipal area; at least one-third of seats reserved for SC/ST women
Duration Fixed at 5 years
Finance Commission Article 243Y provides for the constitution of a Finance Commission to advise on distribution of finances between state and municipality
State Election Commission Article 243ZA provides for the establishment of an independent State Election Commission to conduct elections for every Municipal Corporation for a term of 5 years

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The 74th Amendment Act of 1992 mandated the setting up and devolution of powers to Urban Local Bodies (ULBs) or city governments

The 74th Amendment Act of 1992, also known as the Nagarpalika Act, mandated the setting up and devolution of powers to Urban Local Bodies (ULBs) or city governments. This amendment is a landmark initiative of the Government of India, built on the premise that in a democracy, power rightfully belongs to the people. The act aims to decentralise power by transferring it from central and state governments to local bodies, giving them constitutional status and bringing them under the purview of the Constitution's justiciable provisions.

The 74th Amendment Act provides for the establishment of three kinds of municipalities in every state: Nagar Panchayat, Municipal Council, and Municipal Corporation. Nagar Panchayat is for transitional areas between rural and urban regions, Municipal Council is for smaller urban areas, and Municipal Corporation is for larger urban areas. The act outlines a scheme to be implemented by the states, either by making new laws or amending existing ones to conform to the constitutional provisions.

The amendment also introduced a new Part IXA in the Constitution, which deals with Municipalities in Articles 243P to 243ZG. This part includes provisions for the composition of municipalities, with all members directly elected by the people of the municipal area, and the formation of ward committees. It also mandates the establishment of a State Election Commission, independent of the Election Commission of India, to conduct elections for Municipal Corporations every five years.

The 74th Amendment Act empowers municipalities with the power to legislate and implement schemes for economic development and social justice. It also provides for the constitution of a Finance Commission to advise on the distribution of finances between the state and municipalities and determine aid subsidies. The act ensures that seats are reserved for Scheduled Castes and Scheduled Tribes in every municipality, with at least one-third of the seats reserved for women from these groups.

Overall, the 74th Amendment Act of 1992 is a significant step towards decentralisation and the empowerment of local bodies in India, giving them the authority to make decisions and implement policies that directly impact the people they represent.

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It gave constitutional status to municipalities, bringing them under the justiciable provisions of the Constitution

The 74th Amendment Act of 1992 is a fundamental basis for the decentralisation of rights and authorities to municipal organisations at various levels. The act mandated the setting up and devolution of powers to Urban Local Bodies (ULBs) or city governments, which are the lowest unit of governance in cities and towns.

The amendment introduced a new Part IXA in the Constitution, which deals with municipalities in Article 243 P to 243 ZG. It gave constitutional status to municipalities, bringing them under the justiciable provisions of the Constitution. This means that municipalities now fall under the protection of the Constitution's justiciable provisions, and state governments must implement the new municipal system in compliance with the act's requirements within the terms of their constitutions.

The act outlines a scheme that would be implemented by the states by making laws or amending their existing laws to bring them into conformity with the Constitution. It also added the 12th schedule to the Constitution, containing 18 functional items that are to be placed within the purview of municipalities.

The amendment brought the state governments under the constitutional obligation to adopt a new system of Panchayati Raj, with Panchayats constituted at the village, intermediate, and district levels. The members of Panchayats at these levels are to be elected directly by the people, with one-third of the positions reserved for women.

The 74th Amendment Act also introduced provisions for the establishment of three kinds of municipalities in every state: Nagar Panchayat, Municipal Council, and Municipal Corporation. The duration of a municipality has been fixed at five years, and elections are to be completed before the expiration of this duration.

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The Act introduced a new Part IX-A in the Constitution, outlining a scheme to be implemented by the states

The 74th Amendment Act of 1992, also known as the Nagarpalika Act, introduced a new Part IX-A in the Constitution of India, comprising Articles 243-P to 243-ZG. This amendment outlined a scheme to be implemented by the states, mandating the setting up and devolution of powers to Urban Local Bodies (ULBs) or city governments as the lowest unit of governance in cities and towns.

The Act provided a fundamental basis for the decentralisation of rights and authorities to Municipal organisations, including Municipal Corporations, Councils and Nagar Panchayats. The latter are for areas transitioning from rural to urban, while Municipal Councils are for smaller urban areas, and Corporations are for larger urban areas.

The 74th Amendment granted constitutional status to municipalities, bringing them under the protection of the Constitution's justiciable provisions. This meant that state governments were put under constitutional obligation to adopt municipalities as per the system enshrined in the Constitution.

The Act also introduced the creation of ward committees in municipalities with a population of 3 lakhs or more, with reserved seats for Scheduled Castes and Scheduled Tribes in proportion to their population. It fixed the duration of municipalities at 5 years and empowered them with the necessary powers and responsibilities to function as effective institutions of self-government.

The Amendment also provided for the establishment of a State Election Commission, independent of the Election Commission of India, to conduct elections for Municipal Corporations every 5 years.

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It provided for the establishment of three kinds of municipalities in every state: Nagar Panchayat, Municipal Council, and Municipal Corporation

The 74th Amendment of the Indian Constitution, which came into force in 1993, was a significant step towards decentralizing power and strengthening local governance in India. One of its key features was the provision for the establishment of three types of municipalities in every state: Nagar Panchayat, Municipal Council, and Municipal Corporation. This move aimed to ensure more effective and efficient urban local governance by creating a hierarchical structure of local governing bodies.

Here's an overview of each type of municipality:

  • Nagar Panchayat: A Nagar Panchayat is typically formed in transitional areas, such as small towns or large villages, which are on the path to urbanization but have not yet attained the status of a full-fledged municipality. The population threshold for establishing a Nagar Panchayat varies across states but generally ranges between 10,000 and 25,000. These local bodies are responsible for providing a range of civic amenities and services, including sanitation, street lighting, primary healthcare, and maintenance of roads and parks. They also have the power to levy and collect taxes, such as property taxes and user charges, to generate revenue for their functioning.
  • Municipal Council (also known as Municipality or Nagar Palika): Municipal Councils are established in urban areas with a larger population and more complex administrative requirements. The population criteria for forming a Municipal Council are typically above 25,000 inhabitants. They possess greater administrative and financial autonomy compared to Nagar Panchayats. In addition to the responsibilities shouldered by Nagar Panchayats, Municipal Councils undertake more extensive development and planning activities. They are responsible for regulating urban planning, approving building plans, implementing development projects, and providing essential civic services such as water supply, sewage disposal, solid waste management, and urban transportation.
  • Municipal Corporation (also known as Municipal Corporation or Nagar Nigam): Municipal Corporations are the highest form of urban local self-government and are constituted in large metropolitan cities or urban agglomerations. They are characterized by a substantial population, typically exceeding a million, and a high population density. Municipal Corporations enjoy greater autonomy and have more extensive powers and functions than the other two types of municipalities. They are responsible for major infrastructure development, urban planning and regulation, public health and safety, maintenance of law and order, and providing essential civic services to a large and diverse population. Municipal Corporations also have the power to raise funds through various means, including property taxes, toll taxes, and user charges for specific services.

By establishing these three tiers of municipalities, the 74th Amendment intended to ensure that local governance is responsive to the diverse needs and challenges of India's heterogeneous urban areas. Each type of municipality is designed to cater to the specific requirements and complexities of different urban settlements, ranging from small towns to large metropolitan cities. This hierarchical structure enables more effective decision-making, efficient service delivery, and better representation and participation of local communities in the governance process.

It is worth noting that the exact roles, responsibilities, and functioning of these municipalities may vary slightly across different states, as the 74th Amendment provides a degree of flexibility for states to adapt these institutions to their specific contexts through state legislation. Nonetheless, the establishment of these three kinds of municipalities has been a significant step towards empowering local governments and ensuring more inclusive and effective urban governance in India.

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The Amendment Act played a major role in decentralising power in India by transferring power from central and state governments to local bodies

The 74th Amendment Act of 1992, also known as the Nagarpalika Act, was a landmark initiative of the Government of India that came into force on 1 June 1993. This amendment played a pivotal role in decentralising power by transferring it from central and state governments to local bodies, specifically Urban Local Bodies (ULBs) or city governments.

The act mandated the establishment of local governments, including self-government institutions in both urban and rural areas, as exclusive state subjects. While the Union Government cannot enact laws relating to these subjects, the amendment outlines a scheme for states to implement by making or amending their own laws to align with the Constitution.

The 74th Amendment Act gave constitutional status to municipalities, bringing them under the protection of the Constitution's justiciable provisions. This elevated status ensured that municipalities could effectively serve as local government units, with the power to legislate and implement schemes for economic development and social justice.

The amendment introduced a new Part IXA in the Constitution, encompassing Articles 243P to 243ZG, and the 12th Schedule, which outlined specific provisions for municipalities. This included the establishment of three types of municipalities in each state: Nagar Panchayat for transitional areas between rural and urban, Municipal Council for smaller urban areas, and Municipal Corporation for larger urban areas.

The act also introduced provisions for the composition of these municipalities, with members directly elected by the people of the municipal area, and the establishment of ward committees to represent specific wards within the municipality. Additionally, it mandated reservations of seats for Scheduled Castes and Scheduled Tribes, with at least one-third of these seats reserved for women, ensuring diverse and inclusive representation.

The 74th Amendment Act's focus on empowering local bodies and transferring decision-making authority to the people through their elected representatives in municipalities was a significant step towards decentralisation and strengthening local governance in India.

Frequently asked questions

The 74th Amendment Act of 1992 mandated the setting up and devolution of powers to Urban Local Bodies (ULBs) or city governments as the lowest unit of governance in cities and towns.

The act aimed to decentralise power in India by transferring power from central and state governments to local bodies.

The act introduced a new Part IXA in the Constitution, which deals with Municipalities in articles 243P to 243ZG. It also added the 12th schedule to the Constitution, containing 18 functional items to be placed within the purview of municipalities.

The act granted constitutional status to municipalities, bringing them under the protection of the Constitution's justiciable provisions. It also provided for the establishment of a State Election Commission, independent of the Election Commission of India, to conduct elections for Municipal Corporations. The act also strengthened the role of municipalities in local governance and ensured representation of various communities.

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