Municipalities are the third tier of government in urban areas. They look after civic needs like water, sanitation, roads and street lighting in towns and cities. The 74th Constitutional Amendment Act, 1992 gave municipalities constitutional status and made urban local self-government a regular feature of Indian democracy.
74th Amendment Act
The Act was passed in 1992 and came into force on 1 June 1993. It added Part IXA (Articles 243P to 243ZG) and the Twelfth Schedule to the Constitution.
- It listed 18 functional items in the Twelfth Schedule.
- It made regular elections, reservation of seats and a State Finance Commission mandatory.
- Reservation for women is one-third of total seats.
Types of Urban Local Bodies
- Municipal Corporation (Nagar Nigam) – for large cities.
- Municipal Council (Nagar Palika) – for smaller towns.
- Nagar Panchayat – for areas in transition from rural to urban.
- Special bodies include Cantonment Board, Town Area Committee and Notified Area Committee.
Structure and Officials
A municipality has elected members called councillors who represent wards. The Mayor heads a Municipal Corporation and is the political head, while the Municipal Commissioner is the executive head responsible for administration. Council and Nagar Panchayat are headed by a Chairperson or President.
Functions of Municipalities
Functions are listed in the Twelfth Schedule and include:
- Urban planning and regulation of land use.
- Water supply and public health, sanitation and solid waste management.
- Construction of roads and bridges, street lighting and parking.
- Fire services, slum improvement and protection of weaker sections.
Sources of Income
Municipalities raise funds through property tax, water and sewerage charges, fees and fines, and grants from the state government. A State Finance Commission is set up every five years to review their financial position.
Quick Revision Points
- 74th Amendment Act, 1992 gave municipalities constitutional status.
- Added Part IXA and the Twelfth Schedule (18 items).
- Came into force on 1 June 1993.
- Three types: Corporation, Council, Nagar Panchayat.
- Mayor is political head; Commissioner is executive head.
- One-third seats reserved for women.
- Main tax source is property tax.
- State Finance Commission reviews finances every five years.