India is becoming a city based country fast. This change has made cities very important for the economy and society of India.. The governments of these cities, which are called urban local governments, do not have enough money to do their jobs. This is true even though the Indian constitution says they should be recognized as important. The 74th Constitutional Amendment Act is a law that recognizes local governments. The Finance Commission has decided to give money to these city governments. This decision shows that the government is serious about giving local governments more power to make their own decisions. Urban local governments are still very important for India.
The government is making a change that will help cities manage their money better. This change gives cities power to do things like take care of sanitation, water, housing and transportation. Cities will get money to make sure people have clean water, nice homes and good roads. This change also says that cities are important for the country’s economy and will get a flow of money to help them grow. The move strengthens decentralisation by empowering municipalities to perform Twelfth Schedule functions more effectively which means cities can do their jobs better.
- There are still problems with Urban Local Governments. Many Urban Local Governments do not have management. The State has much control over Urban Local Governments. This means that some cities get more help than others. Urban Local Governments also struggle to collect their money from taxes and things like that.
- Thus, enhanced grants are a necessary step, but meaningful urban decentralisation requires parallel reforms in capacity-building and governance.
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About the Author: Jyoti Verma
