Introduction
The 74th Constitutional Amendment Act, 1992, marked a major milestone in India’s governance system, strengthening urban local bodies (ULBs) and granting them constitutional status. Before this amendment, municipalities operated under state laws without uniformity or constitutional backing. With rapid urbanization, it became necessary to create a well-structured governance framework for cities and towns.
This blog, presented by SR Study , provides a detailed explanation of the 74th Amendment, covering its provisions, significance, and impact on competitive exams like UPSC, State PCS, SSC, and Judiciary exams.
Historical Background of Urban Local Governance
Before the 74th Amendment, urban local governance in India was largely unstructured, varying from state to state. The need for municipal reforms became evident due to:
- Rapid urbanization and population growth
- Poor infrastructure and service delivery
- Lack of financial autonomy for municipalities
- Weak citizen participation in urban governance
To address these issues, the 74th Amendment Act was passed in 1992, coming into effect on 1st June 1993.
Key Features of the 74th Constitutional Amendment
The 74th Amendment added Part IXA (Articles 243P to 243ZG) and the Twelfth Schedule to the Constitution. Below are the major provisions:
1. Three-Tier System of Urban Governance (Article 243Q)
The amendment categorized municipalities into three types based on population size:
- Nagar Panchayat – for areas in transition from rural to urban
- Municipal Council – for small urban areas
- Municipal Corporation – for larger cities
2. Composition of Municipalities (Article 243R)
- Members of municipalities are elected directly by the people.
- Some members may be nominated with expertise in urban governance.
3. Ward Committees (Article 243S)
- For cities with a population of over 3 lakh, Ward Committees must be formed to ensure localized governance.
4. Reservation of Seats (Article 243T)
- Seats are reserved for Scheduled Castes (SCs), Scheduled Tribes (STs), and Women (one-third of the total seats).
5. Duration of Municipalities (Article 243U)
- Municipalities have a 5-year tenure.
- Elections must be conducted before the expiry of the term.
6. State Election Commission (SEC) (Article 243ZA)
- The State Election Commission is responsible for conducting municipal elections.
7. Financial Provisions (Article 243X)
- Municipalities can levy taxes, collect user charges, and receive grants from the state and central government.
- A State Finance Commission (Article 243Y) reviews municipal finances every five years.
8. Twelfth Schedule (List of 18 Functional Areas)
The amendment introduced the Twelfth Schedule, which includes 18 functions such as:
- Urban planning
- Regulation of land use
- Water supply, sanitation, and solid waste management
- Public health and urban forestry
- Roads and street lighting
- Slum improvement and poverty alleviation
Significance of the 74th Amendment
The 74th Amendment has had a transformative impact on urban governance:
- Democratic Decentralization – Strengthened grassroots democracy by creating elected municipal bodies.
- Financial Empowerment – Enabled local bodies to generate revenue and manage funds efficiently.
- Administrative Efficiency – Ensured better urban planning and service delivery.
- Citizen Participation – Increased public involvement in governance through ward committees.
- Women Empowerment – Reservation of seats for women encouraged their political participation.
Challenges in Implementation
Despite its success, several challenges persist:
- Political Interference – State governments often control municipalities, limiting autonomy.
- Financial Constraints – Municipalities rely heavily on state and central grants, affecting independence.
- Lack of Skilled Personnel – Inefficient urban administration due to manpower shortages.
- Urban-Rural Divide – Some areas struggle with governance transition from rural to urban status.
Relevance for Competitive Exams
The 74th Amendment Act is a crucial topic for exams like UPSC, State PCS, SSC, and Judiciary exams. Key areas to focus on:
- Articles 243P to 243ZG (Municipalities)
- Twelfth Schedule (18 functions of municipalities)
- Role of State Election Commission & State Finance Commission
- Differences between 73rd and 74th Amendments
- Current Affairs related to municipal governance reforms
Internal Linking:
- Read “73rd Constitutional Amendment Explained”
- Check “Municipal Governance in India”
- Learn “State Finance Commission & Its Role”
External Linking:
- Constitution of India – Legislative.gov.in
- Election Commission of India
- Ministry of Housing & Urban Affairs
Conclusion
The 74th Constitutional Amendment has played a crucial role in urban decentralization, empowering local bodies and ensuring better city governance. While challenges remain, continuous reforms and financial independence can make municipalities more effective. Understanding these concepts is essential for aspirants preparing for UPSC, State PCS, and other government exams.
For more insightful blogs on Indian Polity & Governance, stay connected with SR Study – Your trusted source for competitive exam preparation!
