Mains Practice Questions

Introduction

Urban Local Bodies (ULBs) constitute the institutional foundation of urban local self-governance under the 74th Constitutional Amendment Act, mandated to plan, regulate, and deliver essential urban services.

• With rapid urbanisation, India’s urban population is projected to reach nearly 600 million by 2036, ULBs are at the frontline of managing water, sanitation, housing, mobility, and public health.
• However, the mismatch between expanding urban responsibilities and limited institutional capacity has severely constrained effective service delivery.

Body:

Challenges Faced By Urban Local Bodies

• Incomplete Functional Devolution: Although the Twelfth Schedule assigns 18 functions to ULBs, most states have transferred only partial responsibilities without corresponding authority.
  • For instance, in many states, water supply and sewerage are managed by state boards, leaving ULBs responsible only for billing and maintenance without planning control.
  • Moreover, urban governance remains fragmented across multiple agencies like development authorities, utilities, and SPVs, resulting in overlapping mandates, weak coordination, and diluted accountability.
• Chronic Financial Weakness: ULBs suffer from weak own-source revenues, low tax buoyancy, and high dependence on inter-governmental transfers.
  • Property tax reforms remain politically sensitive and administratively weak.The own revenue of Indian municipal corporations was less than 1% of GDP, smaller than Brazil's 7% and South Africa's 6%.
• Inadequate Administrative And Technical Capacity: ULBs face acute shortages of skilled personnel such as town planners, engineers, financial managers, and environmental specialists. Smaller municipalities rely on deputation staff with limited local accountability.
  • For instance, 49% posts are vacant across urban development authorities in Gujarat.
• Political Interference And Weak Accountability: Frequent supersession of elected councils, delayed elections, and excessive state control dilute democratic governance at the city level.
  • Several states have delayed municipal elections, resulting in prolonged rule by administrators rather than elected representatives.

How These Challenges Hamper Basic Service Delivery

• Water Supply And Sewerage Deficits: Lack of functional authority and weak finances prevent ULBs from investing in sustainable water and sanitation infrastructure. Planning remains fragmented and reactive.
  • Most Indian cities provide intermittent water supply, with high non-revenue water and untreated sewage discharged into rivers.
• Inefficient Solid Waste Management: Limited technical capacity and poor financial health hinder scientific waste segregation, processing, and disposal. Compliance with environmental norms remains weak.
  • “According to recent reports, over half of municipal solid waste in Indian cities still ends up in open dumpsites and unscientific landfills, with waste processing targets under the SWM Rules, 2016 largely unmet, underscoring ongoing systemic failures in segregation and disposal.
• Housing And Slum Service Gaps: Weak planning powers and land constraints limit ULBs’ ability to provide affordable housing and upgrade informal settlements.
  • Expansion of slums on urban peripheries without drainage, roads, or sanitation facilities leads to urban flooding and disease outbreaks as seen in Delhi.
• Urban Mobility And Transport Failures: Fragmented governance prevents integrated transport planning, leading to congestion and poor public transport coverage.
  • Metro systems coexist with inadequate bus networks and weak last-mile connectivity.

How Institutional And Financial Reforms Can Enhance Urban Governance:

• Genuine Devolution Of Functions, Funds, And Functionaries(3 F’s): Clear transfer of authority along with administrative control can make ULBs accountable for outcomes. Devolution must be activity-mapped and legally enforced.
  • For instance, cities managing end-to-end water supply will show better service outcomes than those with fragmented control.
• Strengthening Municipal Finances: Reforms in property tax valuation, user charges, land-based financing, and predictable transfers can improve fiscal sustainability.
  • For example, Municipal bond issuances by cities like Ahmedabad and Pune demonstrate the potential of market-based financing.
• Professionalisation Of Urban Administration: Creation of municipal cadres, lateral entry of professionals, and continuous capacity building can improve urban planning and execution.
  • Dedicated urban planning units under AMRUT 2.0 aim to strengthen city-level technical capacity.
• Integrated Metropolitan Governance: Metropolitan planning committees and unified transport authorities can address cross-boundary challenges in large urban agglomerations.
  • Integrated transport authorities help coordinate metro, bus, and non-motorised transport planning.
• Deepening Citizen Participation And Transparency: Ward committees, social audits, participatory budgeting, and digital grievance systems enhance accountability and service responsiveness.
  • Participatory budgeting experiments (eg, Pune Municipal Corporation) have improved prioritisation of local infrastructure .

Conclusion

Strengthening Urban Local Bodies is indispensable for achieving SDG-11 (Sustainable Cities and Communities) and inclusive urban development. Without institutional empowerment and financial autonomy, rapid urbanisation will continue to overwhelm service delivery systems. Deep reforms in devolution, capacity, and finance are essential to transform ULBs into effective engines of democratic and sustainable urban governance.