Limited autonomy and authority of local governments

(MainsGS2: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.)

Context:

• In December 1992, Parliament passed the 73rd and 74th constitutional amendments, which instituted panchayats and municipalities, respectively. 
• These amendments mandated that State governments constitute panchayats (at the village, block and district levels) and municipalities (in the form of municipal corporations, municipal councils and nagar panchayats) in every region.

Reforms for decentralisation:

• The 73rd and 74th constitutional amendments sought to institute a third-tier of governance in the federal framework through the devolution of functions, funds, and functionaries to local governments.
• Since local governments seldom derive their authority directly from the Constitution, India’s constitutional reforms for decentralisation are exceptional.
• But despite these reforms, municipal governments are often seen to be ineffective in addressing even the most basic needs of citizens, such as reliable water supply and walkable footpaths.

Local self-governance

• Understanding the normative basis of local self-governance is important since this also informs the institutional form local governments take.
• Local self-governance is linked to the idea of subsidiarity and is typically grounded on two broad arguments.
• First, it provides for efficient provision of public goods since governments with smaller jurisdictions can provide services as per the preferences of their residents.
• Second, it promotes deeper democracy since governments that are closer to the people allow citizens to engage with public affairs more easily.

Deepening local democracy:

• The 73rd and 74th amendments require States to vest panchayats and municipalities with the authority “to enable them to function as institutions of self-government”, including the powers to prepare and implement plans and schemes for economic development and social justice. 
• They also mandate the regular conduct of local elections, provide for the reservation of seats for Scheduled Castes, Schedules Tribes and women in local councils, and institute participative forums like gram sabhas in panchayats and ward committees in municipal corporations. 
• Hence, the core values that the amendments sought to entrench are that of deepening local democracy and devolving functions for meeting the ends of economic development and social justice.

Limited autonomy and authority:

• Despite the constitutional promise of local self-governance, local governments, especially municipalities, operate with limited autonomy and authority. 
• Their frailty may be attributed to the inherent limitations of the 74th amendment and the failure of State governments and courts to implement and interpret the amendment in letter and spirit. 
• Limitations include the discretion given to the States regarding devolution of powers and levying of local taxes. 
• State governments are reluctant to implement the 74th amendment as cities are economic powerhouses and controlling urban land is important for financing State governments and political parties.

Conclusion:

• As India is undergoing a centralising shift in its politics, economy, and culture, there’s also been a renewed assertion of federalism.
• Hence, debates on federalism should include larger discussions on how power should be divided and shared between governments at the Union, State, and local level since local governments are, normatively and structurally, an integral part of the federal framework of the Constitution.