Municipality in India

Asia Research Centre Working Paper 19
Challenges
for Urban Local Governments
in India
Written by
Rumi Aijaz
Rumi Aijaz was Visiting Research Fellow at Asia Research Centre
in 2006.
E-mail: [email protected]
A section of this working paper has been accepted for publication in a forthcoming issue of the Journal of Asian and African
Studies, by Sage Publications Ltd.
Copyright Rumi Aijaz, 2007

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Abstract
Urban local government institutions/municipalities are constituted for the maintenance and
planned development of urban areas. The objective is to ensure that suitable levels of
infrastructure and services are available to the citizens. In many parts of India, the quality of life in
urban areas is miserable and the citizens lead a difficult life. To overcome this problem, a series of
reforms have been initiated by the Indian government to strengthen local-level governance. The
main purpose of this working paper is to describe the major issues of governance at the local level
and to identify some important challenges for urban local government institutions in India in the
light of recent urban sector reforms. This assessment is based on data collected from six urban
centres situated in three northern/north-western states (namely Haryana, Rajasthan and
Uttaranchal) of India on key urban local government characteristics constitution and governance,
duties, composition, management and finance practices, state/local-level initiatives and problems.
The findings of this study show that urban local governments in India continue to remain plagued
by numerous problems, which affect their performance in the efficient discharge of their duties.
These problems relate to the extent of participation and rule of law in the municipal decisionmaking process, transparency in the planning and implementation of infrastructure projects, and
level of efficiency in various municipal management and finance practices. It is concluded that
fresh thinking is necessary to resolve the problems confronting urban local governments in India.
Table of Contents
I.
Research Outline.............................................................................................................. 1
II.
Form of Urban Local Government in India ..................................................................... 5
III.
The Case Studies............................................................................................................ 23
IV.
Case Studies Compared ................................................................................................. 75
V.
Issues of Local-Level Governance................................................................................. 76
VI.
Conclusion ..................................................................................................................... 82
Appendix 1: Information on People Met and Interviewed ........................................................ 84

Appendix 2: Main Characteristics of Urban Local Governments in Selected Case Studies ..... 85
Abbreviations............................................................................................................................. 88
Bibliography .............................................................................................................................. 89
Endnotes..................................................................................................................................... 90
Rumi Aijaz
I.
Research Outline
Introduction
The progress of an area depends to a large extent upon the availability of suitable infrastructure
and services. There are many developing countries in the world where service levels in urban areas
are much below the standards and the citizens lead a difficult life. It is obvious that such
conditions also affect adversely the productivity of urban areas. Much of the blame for the
prevailing situation goes to the local government institutions, which are the main actors in the
governance process at the local level. This is due to the fact that urban local governments (also
known as municipalities), on the one hand, recover costs incurred in service provision by levying a
variety of taxes and non-taxes, and on the other, fail to meet the expectations of the citizens.
Research Context
Local governments are unable to perform well due to various reasons. Therefore, an important
area requiring urgent research is the Challenges for Urban Local Governments. There are a
number of issues concerning local governments that have not been highlighted adequately in the
literature.
This research has relevance to the on-going work on governance.1 A review of literature on
governance reveals that extensive research is under way to evolve suitable criteria and
methodology for achieving good governance.2 This is due to the realisation that a significant
reason for the poor quality of life in urban areas of developing countries is poor urban
governance. In a number of countries, including India, national and regional campaigns on urban
governance are being implemented to translate good governance principles into practice. 3
However, there is evidence to show that the reach and impact of such campaigns is limited and
there are still a large number of municipalities in India that have not benefited. The same is
observed in respect of the Centre and State government supported programmes. This shows that
despite numerous efforts, several municipalities in India continue to remain plagued by a number
of problems, which affect their performance adversely. This research is, therefore, based on the
hypothesis that there exist various local-level problems of governance that hinder the quality of life
in urban areas.
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Challenges for Urban Local Governments in India
Research Questions
This study focuses on the functioning of a select number of urban local governments in India, and
attempts to address the following two basic research questions:
Which components should be reviewed to understand the form of an urban local government?
What are the major issues of governance at the municipal/local-level?
Scope and Limitations of Research

Urban local government is a vast subject. In this study, the form of an urban local government is
understood on the basis of a limited number of components, which are listed below.
Constitution and governance
Duties/functions
Composition/staff
Conduct of business, i.e., municipal management and finance practices
State/Local initiatives/reforms
Problems
Most municipalities in India do not have sufficient resources and technology to collect
desegregated town-level data and maintain a database. Hence, data on various municipal aspects
and performance parameters is difficult to collect. For example, reliable data on the proportion of
population served by water supply; houses connected with underground sewer facility; proportion
of solid waste collected and disposed daily; etc., are generally not maintained. Progress reports
containing information on the activities carried out by the different committees/sub-committees
constituted by a municipality are prepared from time to time for the higher levels of government.
The information contained in these reports is generally not shared with people not affiliated to the
municipality. Due to the existence of a highly bureaucratic set up and the non-availability of
published information/reports at the local-level, collection of data for this study has proved to be
a difficult task for this researcher. Sometimes, the municipal staffs are not willing to share
information due to the habit of non-cooperation with others; at other times, they require written
orders from the senior most municipal official, which caused unnecessary delays. Although the
senior most officials in municipalities are most cooperative, the sub-ordinate staffs, in general,
follow an altogether different work style. In this situation, the researcher has relied greatly on the
feedback and cooperation received from staff with a positive attitude.
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Data Base and Research Methodology

As is the approach followed in most social science research, this study is based on data collected
from both secondary and primary sources. Publications of the Government of India, the State
Government, and other publications have been reviewed. Important among these are the: State
Municipal Acts, that contain information on legal provisions for municipalities; and the State
Finance Commission Reports, which describe the municipal finance practices and the financial
performance of municipalities at different time periods. Data maintained by the municipalities on
various administrative and financial matters have been collected through field visits. A complete
referencing of the various documents reviewed in the preparation of this study is provided at the
end of this paper.
Field visits to a select number of towns/cities have been undertaken and interviews have been
held with a select number of elected representatives and appointed officials/staff of municipalities
during the period October to December 2005. The purpose of this visit was to gain knowledge on
practices followed in the discharge of their duties as well as the problems experienced by the
municipal functionaries. Appendix 1 provides details of some persons met and interviewed during
field visits.
A total of six towns/cities from three northern/north-western States of India, i.e., two from each
State, have been selected for this study. Their names and the States in which they are situated are
given below in Table 1.1.
Table 1.1: The Case Studies

S. No.
1
Name of State
Haryana
Rajasthan
Uttaranchal
Name of Town/City
a. Bahadurgarh
b. Gurgaon
a. Alwar
b. Bharatpur
a. Mussoorie
b. Nainital
The towns listed in Table 1.1 have been randomly selected. In this regard, the following points
may, however, be mentioned.
Medium-sized towns/cities, which are mainly dependent on support from higher levels of
government, have been selected. There are some large urban centres in India that are better
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governed. One reason for this is the concentration of activities, which has lead to the availability
of more resources, and participation of a mix of actors from the government, community and the
private sector in the governance process. On the other hand, the condition in most medium-sized
towns is depressing and the local governments of these towns have not been able to provide the
desired level of services due to various reasons. This study is, therefore, concerned with the
problems faced by local governments existing in such towns.
Two towns each from three different States of the country have been selected. The purpose is to
capture the differences in the governance practices within and among States. It may also be
mentioned here that towns selected from the States of Haryana and Rajasthan are situated in a
semi-arid region, whereas those selected from the State of Uttaranchal are hill towns.
Organisation of the Paper
This paper is divided into six sections. The first section presents the research outline context,
questions, scope, limitations, database and research methodology. An overview of the prevailing
form of urban local government in India is described in the second section. This assessment is
based on a review of literature on key urban local government characteristics legal, managerial,
financial, etc. The third, fourth and fifth sections focus on the functioning of six urban local
governments selected for this study and attempt to highlight the major issues of governance at the
municipal/local level. In the concluding section, the key challenges for urban local governments in
India are discussed.
At the end of the paper, the following information is provided: (a) Appendix 1 Details of
persons met and interviewed during the course of this research; (b) Appendix 2 A comparative
table showing key urban local government characteristics in the selected towns; (c) Abbreviations;
and (d) References used in this research.
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II. Form of Urban Local Government in India

In India, numerous initiatives have been undertaken to strengthen local governments and to
improve service levels in urban areas. Important among these are the enactment of a set of
constitutional provisions, implementation of numerous urban development programs and
adoption of various innovative practices.
In this section, the form of urban local governments is described in the light of recent urban
sector reforms. There are eight sub-sections in this section. The first sub-section provides a brief
overview of the evolution of municipalities in India from the ancient times to the present period.
In the subsequent sub-sections, the following key aspects relating to municipalities have been
described: typology and constitution; legislation; duties; composition; management and finance
practices. The concluding sub-section sums up the initiatives taken to improve the conditions at
the local level.
Evolution of Municipalities
Historical records provide evidence of the existence of organised urban life in India since the
ancient period. An officer was appointed to perform various functions related to city
administration. Subsequently, local institutions were constituted. As centres of prominence grew,
their management became difficult. A number of problems confronting local governments began
to emerge, such as excessive official control, narrow franchise, meagre resources, lack of education
and training, shortage of capable and committed persons, and inadequate control of local bodies
over services. 4 A need was felt to strengthen the local government institutions that would look
after the day-to-day civic affairs in an efficient manner. A number of steps were taken from time
to time in an attempt to reform local governments decentralisation of authority, powers,
functions and funds to lower levels of government; democratisation of local governments;
providing greater autonomy; granting constitutional status; amendments in municipal Acts; etc.
(Table 2.1). During the period of reforms, issues related to sharing of power between the officials
and non-officials affiliated to the local government emerged prominently. A major achievement of
the Indian Government in their endeavour to strengthen urban local governments is the
enactment of the Constitution (seventy-fourth amendment) Act during the year 1992.5 The Act
provides for initiating reforms in the constitution, composition and functioning of urban local
governments (Box 2.1) and empowers State governments to amend their municipal Acts
accordingly.6 Since the enactment of the Act, most State governments in India have carried out
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the legislative reforms at local government level. In recent times, several attempts have been made
to assess the impact of the seventy-fourth amendment Act provisions.
Table 2.1: Evolution of Municipalities in India

Time Period
2300-1750 BC
(Indus Valley
Civilisation)
Post-Mauryan
320-540 AD
(Gupta)
1526-1707 AD
(Mughal)
Between
disintegration of
Mughal Empire
and advent of the
British
1642
1720
1793
1850
Up to 1863
1870
After 1870 and up

to 1880
Developments
Evidence of organised urban life wide streets, market places, public offices, community
baths, drainage and sewerage system
Appointment of a chief executive officer to perform various functions related to city
administration; responsible for citys sanitation, which included maintenance of drainage
system and cleanliness of roads
Towns administered by a council
Provision of having elected administrative officers
Municipal administration vested in kotwal, who was the city governor possessing powers and
duties of the chief of city police, magistrate and prefect of municipal administration
Anarchy and military feudalism in most parts of the country
Local institutions perverted or weakened
Sir Josia Child obtains a Charter from the British Monarch, James II, to set up a corporation
at Madras
A royal Charter issued for establishing a mayors court in each of the three presidency towns
of Madras, Bombay and Calcutta7
Governor-General in council empowered to appoint justices of peace for the presidency
towns from among civilians and the British subjects, who were vested with the authority to
impose taxes on houses and lands to provide for the sanitation of towns
By a Charter Act, the British establish local institutions in Bombay, Calcutta and Madras
Act passed to permit formation of local committees to make better provisions for public
health and convenience; Act provided for levy of indirect taxes to which people were
accustomed
Local institutions in urban areas did not make much progress and were confined to about 20
towns
People had no opportunity to participate in the functioning of these institutions
Royal Army Sanitation Commission point out the fast deteriorating sanitary condition of
towns all over the country
Government of India pass several municipal Acts for various provinces authorising
governors to order the formation of a municipality in any urban area
Lord Mayos resolution released; provided for decentralisation of administration from the
centre to the provinces; emphasised the idea of increased association of Indians in
administration; indicated extension of municipal self government; encouraged the general
application of the principle of election
Municipal Acts passed to enlarge municipal powers, extend election system and introduce
the system of local finance, but the provision was little applied in practice as the district
officers in those days were not sympathetic to the idea of extension of the elective principle
Municipalities established in every town of importance. However, these municipal bodies
were completely under the control of the district magistrate and the town people were
associated only for raising funds for the maintenance of police, conservancy and road
repairs
Social and economic changes experienced by the Indian society
Educated Indians demand more political rights and greater share in administration and
public services
Principle of local self-government put into practice only in the cities of Calcutta and
Bombay and in a few of the towns of Central Provinces and North Western Provinces.
Elsewhere, although a framework of local administration and local taxation existed, control
was firmly in the hands of the servants of the government
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Rumi Aijaz
Time Period
1882
1888
1907
1914-1919
Up to 1947
1950
Since 1949
1985
1989
Developments
Lord Ripons resolution released; advocated for establishment of a network of local selfgovernment institutions; reduction of the official element of not more than a third of the
total membership; a large measure of financial decentralisation; adoption of election as a
means of constituting local bodies
Municipal Acts passed; However, Lord Ripons reforms achieved little success, since they
were considered too radical
Functioning of local governments for several years had some positive results. Presidency
towns attain a system of responsible government. Under the Bombay City Municipal
Corporation Act, 1888, the city council of Bombay was constituted of a majority of elected
and nominated members. A standing committee of the council, which had an elected
chairman, was also formed to undertake the major portion of the work of the council
Royal Commission on Decentralisation set up to enquire into the financial and
administrative relations of the Government of India and the provincial governments and
subordinate authorities
Commission recommendations similar to Lord Ripons proposals
Municipal Acts of several provinces amended, but no real progress achieved
Local self government continued to be one of the functions of the district officer
National movement for independence gains momentum
1917 Declaration released: associate Indians in every branch of administration; gradual
development of self-governing institutions
Montague-Chelmsford reforms introduced to make local self government representative and
responsible
Government of India Act, 1919 enacted; responsibility for local government transferred
from the hands of the district officers to a department controlled by a popular minister;
franchise for election to local bodies substantially widened. In some provinces, the
municipal bodies were given the power to raise or lower rates of taxes within the statutory
limits. The popular ministers of provincial governments proceeded to establish elected
councils and gave executive authority to the elected chairman
Laws governing local bodies enacted during the period 1917 to 1937 fail to prescribe an
effective system for day-to-day management of municipal affairs; hardly any attention paid
to the question of administrative efficiency and fixation of responsibility for the proper
performance of municipal functions
Transfer of power from official hands resulted in inefficiency
Several municipalities superseded on the charges of corruption and inefficiency
India attains independence in 1947
New constitution prepared; contained provisions for rural settlements only; a reference to
urban local government observed only in two entries: (a) Entry 58 List II of the Seventh
Schedule (the State List); and (b) Entry 209 of List III (Concurrent List)
Constitution places local government, including urban local government, within the
legislative competence of the States
In the absence of constitutional recognition and clear statutory delineation of their powers,
functions and resources, urban local governments remain neglected; only few changes made
in their structure and functioning
Numerous committees and commissions appointed by the Central and State Governments
to study the functioning of urban local governments and to give recommendations for their
improvement
Numerous seminars and conferences convened on various topics concerning urban local
governments
Central Council of Local Self-Government set up in 1954 to examine the problems of urban
local governments
Responsibility of urban local government transferred from one ministry to the other, namely
Ministry of Health; Ministry of Works, Housing and Urban Development (1966); Ministry
of Health, Family Planning, Works, Housing and Urban Development (1967); Ministry of
Works and Housing (1973)
Ministry of Urban Development established; assisted by several departments
National Commission on Urbanisation set up to assess problems caused by urbanisation and
to suggest measures to combat this phenomenon
Attempt to introduce the Constitution (63rd Amendment) Bill; also known as Nagarpalika
(Municipality) Bill; contained provisions for strengthening of urban local governments
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Time Period
Developments
Bill defeated in the parliament by a narrow margin of three votes
1991
Bill [named Constitution (73rd Amendment) Bill] introduced again by the Government
Bill rejected and described as an encroachment on the rights of State governments
1992
Constitution (74th Amendment) Act finally accepted and enacted; contains provisions for (a)
constitution of a uniform typology of municipalities; (b) composition of municipalities; (c)
constitution and composition of wards committees; (d) elections and reservation of seats; (e)
duration of municipalities; (f) powers, authority and responsibilities of municipalities; (g)
constitution of state finance commissions, committees for district planning and
metropolitan planning
Since 1992
Most State municipal Acts amended
Reforms underway in the structure and functioning of urban local governments
Source: Report of the Committee of Ministers Constituted by the Central Council of Local Self Government (1963);
Government of India (1966); Sachdeva, Pardeep (1993); Constitutional Provisions Relating to Village
Panchayats and Municipalities in India (1999).
Box 2.1: Constitution (Seventy-fourth Amendment) Act Provisions
Constitution of Municipalities (namely, Municipal Corporation, Municipal Council, and Nagar

Panchayat) in every Indian State;
Constitution of Wards Committees within the territorial area of a municipality, to ensure peoples
participation in civic affairs at the grass-roots level;
Regular and fair conduct of municipal Elections by statutorily constituted State Election
Commissions; no provision for supersession of municipal governments for more than 6 months;
Adequate representation of weaker sections (i.e., Scheduled Caste, Scheduled Tribe, Backward Class) of
the society and women in municipal governments through reservation of seats;
Specification by law, through the State Legislatures, of the powers (including financial) and functional
responsibilities to be entrusted to municipalities and wards committees;
Constitution of State Finance Commissions, once in every 5 years, to review the financial position of
municipalities and to make recommendations on the measures needed to improve their financial
position;
Constitution of a District Planning Committee at the district level and a Metropolitan Planning
Committee in metropolitan areas of every State, for the preparation and consolidation of development
plans.
Source: Constitutional Provisions Relating to Village Panchayats and Municipalities in India (1999).
Typology and Constitution of Municipalities

A typology of municipalities exists in the different States of India. This is due to the varied
character of urban areas. Before 1992, State governments were empowered to constitute four
different types of municipalities, namely municipal corporations, municipal committees/councils10,
notified area committees and town area committees. Thereafter, the seventy-fourth amendment
Act was enacted which provides for three types of municipalities municipal corporations,
municipal councils and nagar panchayats (Figure 2.1) and most state governments classified local
governments falling within their jurisdiction as per the revised scheme.11 Notified area committees
and town area committees have been reconstituted as nagar panchayats. The attempt of the central
government is to establish a uniform classification of municipalities throughout the country, which
is based on the principles of democracy. Though all urban local governments have common
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objectives and somewhat identical characteristics, the method of their constitution in the extent of
delegated functions, powers and resources available to them lends a distinct status to each category
of local government (Table 2.2).
Figure 2.1: Changes in Typology of Municipalities
Earlier Typology
(Before 1992)
Municipal Corporation
Municipal
Committee/Council
Notified Area Committee
Town Area Committee
Current Typology
(After 1992)
Municipal Council
Nagar Panchayat (Town
Council)
Table 2.2: Main Characteristics of Urban Local Governments

Type of Municipality
Rationale for Constitution and Brief Characteristics

Before 1992
After 1992
Established in metropolitan areas or big cities
Constituted in large urban
areas*
Wider functions and larger powers than councils,
enjoy more autonomy and have larger revenue
resources
Separation of deliberative from executive functions
and vesting of all executive powers in an appointed
authority who is independent of the elected body
Municipal
Constituted in small urban
Most popular form of local government in urban
Committee/Council
areas*
areas
Set up in cities and large towns
Extent of State control is relatively larger than
corporations
Nagar Panchayat
Constituted after 1992
Constituted in areas in
transition from rural to
urban*
Notified Area Committee Set up by State government in medium and small
Abolished
towns
Created for areas which do not fulfil conditions for
constitution of councils but are otherwise
important
Also created for newly developing towns or areas
where industries are being established
All members including chairman are nominated by
State government and not elected
Town Area Committee
Semi-municipal authority constituted for small
Abolished
towns
Members are either wholly nominated or wholly
elected, or partly nominated and partly elected
Source: Report of the Committee of Ministers Constituted by the Central Council of Local Self Government (1963);
Government of India (1966); Sachdeva, Pardeep (1993); Constitutional Provisions Relating to Village
Panchayats and Municipalities in India (1999).
Note:
*A large urban area, a small urban area and a transitional area are defined as such area as the
Governor may, having regard to the population of the area, the density of the population therein, the
revenue generated for local administration, the percentage of employment in non-agricultural activities, the
economic importance of such other factors as the Governor may deem fit, specify by public notification
(Constitutional Provisions Relating to Village Panchayats and Municipalities in India, 1999).
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The number of municipalities (i.e., municipal corporations, municipal councils and nagar panchayats)
differs from State to State. It is obvious that States with a large number of urban areas have a
higher number of municipalities. There are some States where municipal corporations and/or
nagar panchayats do not exist. This is due to the fact that the urban areas in such States do not fulfil
the conditions for the constitution of a particular type of local government.
Municipalities are constituted by the State government, which specifies the class to which a
municipality shall belong in accordance with the provisions of the municipal Act. For this purpose,
size of the urban population is the main criterion. However, in some States consideration is also
given to other criteria, such as location of the urban area and the per capita income (Table 2.3).
Table 2.3: Criteria for Constitution of Municipalities in States Selected for Study
Name of
State
Haryana
Rajasthan
Municipal
Corporation
Population of
300,000 or more
Population of
500,000 or more
Type of Municipality and Criteria

Nagar Panchayat12
Municipal Council
Population of more
than 50,000 and not
exceeding 500,000
Population of more
than 100,000 and not
exceeding 500,000
Uttaranchal
Population of not more than 50,000

Class II: Located at District Headquarter;
population of 50,000 or more and not exceeding
100,000; per capita income of Rs. 200 or more
Class III: Population of 25,000 or more and not
exceeding 50,000; population of less than 25,000
and per capita income of Rs. 150
Class IV: Population of less than 25,000
Not specified
Information not
Not specified
available
Source: Municipal Law in Rajasthan, Vol. II (2005: 549-50); The Haryana Municipal Act, 1973 (2005: 47); United
Provinces Municipalities Act, 1916 (2004).
Note: In Rajasthan, Nagar Panchayats (also known as Municipal Boards) have been further classified as Class II, III,
and IV municipalities; Municipal Corporations and Municipal Councils are referred to as Class I
municipalities.
Municipal Legislation
Urban local governments are governed by the provisions of the State municipal Acts.13 Every
State has its own municipal Act. The State legislature is empowered by the central government to
decide on the structure, functions and powers to be entrusted to the local governments. 14
Although the content and format of various State municipal Acts is more or less uniform, there
are striking differences in the provisions for devolution of powers, functions and funds to local
governments since this is determined by the condition of both the State and the local government.
The system is regulated by enactments passed from time to time by State legislatures.
Furthermore, municipalities possess powers to draft local byelaws on various provisions for the
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furtherance of municipal administration. This is due to the fact that each urban area has its own
distinct character. The byelaws are sent to the State legislature for approval. The municipal Act is,
therefore, a comprehensive guiding legal document for the local government officials and the
elected representatives, and byelaws are framed to further clarify the administrative procedures.15
In every State, two different types of Acts are generally in use one for the municipal
corporations and a common Act for the municipal councils and nagar panchayats. In a few States
where several municipal corporations exist, the legislature has framed municipal Acts especially for
some corporations. 16 The remaining corporations in the State are governed by a common
municipal corporations Act.
Duties of Municipalities
The basic objective of an urban local government has changed from the maintenance of law and
order in the early years to the promotion of the welfare of the community in recent times. The
State municipal Acts provide an exhaustive list of functions, which are classified into obligatory
and optional or discretionary functions.17 The former have to be necessarily performed by the
local government and for which sufficient provision in the budget has to be made. Failure to
perform any of these functions may compel the State government to supersede a municipality.
Discretionary functions may be taken up depending upon the availability of funds. Municipal
functions listed in the State municipal Acts generally fall in the following broad categories: (a)
public health and sanitation; (b) medical relief; (c) public works; (d) education; (e) development;
and (f) administrative (Table 2.4).
Table 2.4: Functions of Urban Local Governments

S. No.
1
Category
Public Health and
Sanitation
Medical Relief
Public Works
Description
Water supply, public vaccination, control of diseases, prevention of
pollution, collection & disposal of rubbish, maintenance of sewers, etc.
2
Establishment & maintenance of health institutions, etc.
3
Construction & maintenance of streets, bridges, etc., control & regulation
of building activity, street lighting, tree plantations, etc.
4
Education
Establishment & maintenance of educational institutions, etc.
5
Development
Construction & maintenance of markets, shopping centres, drinking
water standposts, wells, parks, gardens, etc.; preparation of
comprehensive plans for development & growth of town, etc.
6
Administrative
Preparation of annual reports, maintenance & development of municipal
property, regulation of traffic, registration of births & deaths, etc.
Source: Government of India (1966: 20-23); Municipal Acts of various States.
Note: Some of the important obligatory functions of urban local governments are listed in the table.
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Furthermore, the seventy-fourth amendment Act, 1992 provides that State legislatures may endow
municipalities with 18 functions (Box 2.2). Whereas many of these functions (such as urban
planning, water supply, sanitation, slum improvement, etc.) were already listed in the municipal
Acts of most States, certain new functions have been included, namely planning for economic and
social development; urban forestry, protection of the environment and promotion of ecological
aspects; safeguarding the interests of weaker sections of society, including the handicapped and
mentally retarded; urban poverty alleviation; and promotion of cultural, educational and aesthetic
aspects. It is understood that the listing of the 18 functions has been done to ensure that State
governments give priority to at least those functions that are of importance to every urban area. In
most State municipal Acts, the list of 18 functions has been inserted.
Box 2.2: Powers, Authority and Responsibilities of Municipalities (Article 243 W)

Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow
(a)
the Municipalities with such powers and authority as may be necessary to enable them to function
as institutions of self-government and such law may contain provisions for the devolution of
powers and responsibilities upon Municipalities, subject to such conditions as may be specified
therein, with respect to:
(i)
the preparation of plans for economic development and social justice;
(ii)
the performance of functions and the implementation of schemes as may be entrusted to them
including those in relation to the matters listed in the Twelfth Schedule;
(b)
the Committees with such powers and authority as may be necessary to enable them to carry out
the responsibilities conferred upon them including those in relation to the matters listed in the
Twelfth Schedule.
Twelfth Schedule
1. Urban planning, including town planning;
2. Regulation of land-use and construction of buildings;
3. Planning for economic and social development;
4. Roads and bridges;
5. Water supply for domestic, industrial and commercial purposes;
6. Public health, sanitation, conservancy and solid waste management;
7. Fire services;
8. Urban forestry, protection of the environment and promotion of ecological aspects;
9. Safeguarding the interests of weaker sections of society, including the handicapped & mentally
retarded;
10. Slum improvement and upgradation;
11. Urban poverty alleviation;
12. Provision of urban amenities and facilities, such as parks, gardens, playgrounds;
13. Promotion of cultural, educational and aesthetic aspects;
14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums;
15. Cattle pounds; prevention of cruelty to animals;
16. Vital statistics, including registration of births and deaths;
17. Public amenities, including street lighting, parking lots, bus stops and public conveniences; and
18. Regulation of slaughterhouses and tanneries.
Source: Constitutional Provisions Relating to Village Panchayats and Municipalities in India (1999: 13-14; 1819).
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Composition of Municipalities
There have been significant changes in the composition of municipalities since their constitution.
In the ancient period, municipal administration was in the hands of the ruling class or the ruling
government and their subordinate offices and departments. Urban citizens were not happy with
the prevailing centralised approach, which was characterised by excessive bureaucracy. It was
gradually realised that because local governments were formed for the welfare of the urban
citizens, it was necessary to involve them. This thinking paved the way for citizens participation in
municipal affairs. A select number of urban citizens are now chosen by holding elections to
municipalities. For this purpose the municipal area is divided into several wards delineated on the
basis of population.18 There is a contest for the seat/post of councillors in municipalities among
the eligible voters at the ward level. One person from each ward is elected to the post of
councillor. Elections are also held for the post of a mayor in municipal corporations and a
chairperson (also known as a president/chairman) in municipal councils and nagar panchayats. The
State government departments are responsible for the organisation of municipal elections. 19
Besides the State government appointed staff and persons nominated by the State government,
citizens representatives have become a part of the local government. Whereas the appointed staffs
are trained to handle their duties, citizens representatives are more aware of the quality of life at
the ward level. The effort of the government has been on maintaining a balance in the distribution
of power between the officials and the non-officials and on establishing a democratic form of local
government. To enable wider participation in municipal affairs, seats in local governments are
reserved for some sections of the society (Box 2.3).20 In addition to the appointed, nominated and
the elected functionaries, ex-officio persons are also affiliated to the local government. A typical
composition of an urban local government is shown in Table 2.5.21
Table 2.5: Composition of Urban Local Governments

Category
Elected Members
Ex-officio Members
Appointed Staff
Nominated Members
Source:
Mayor; Deputy Mayor
Councillors/Elected
Ward Representatives
MPs
MLAs
MLCs
Municipal Commissioner
Subordinate Staff
Selected Citizens
Municipal Council/Nagar Panchayat
Chairperson/President; Vice-President
Councillors/Elected Ward Representatives
MPs
MLAs
MLCs
Executive Officer
Subordinate Staff
Selected Citizens
State Municipal Acts.
Page 13
Notes: (i) Elected Members: There is one seat of Mayor/President, Deputy Mayor/Vice-President in a municipality;
there are as many councillors as the number of wards in a municipality.
(ii) Ex-officio Members: MP Member of Parliament; MLA Member of Legislative Assembly; MLC
Member of Legislative Council.
(iii) Appointed Staff: There is one position of Municipal Commissioner/Executive Officer in a municipality;
the various sub-committees of a municipality are run by the subordinate staff in association with the elected
members and the Municipal Commissioner/Executive Officer. Such staffs do not have the right to vote in
the meetings of the municipality.
(iv) Nominated Members: A certain number of persons having special knowledge or experience in municipal
administration are nominated by the State government. Such members do not have the right to vote in the
meetings of the municipality.
Box 2.3: Reservation of Seats in Municipalities (Article 243 T)

(1) Seats shall be reserved for the SCs and STs in every Municipality and the number of seats so reserved
shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct
election in that Municipality as the population of the SCs in the Municipal area or of the STs in the
Municipal area bears to the total population of that area and such seats may be allotted by rotation to
different constituencies in a Municipality.
(2) Not less than one-third of the total number of seats reserved under clause (1) shall be reserved for
women belonging to the SCs or as the case may be, the STs.
(3) Not less than one-third (including the number of seats reserved for women belonging to the SCs and
the STs) of the total number of seats to be filled by direct election in every Municipality shall be reserved
for women and such seats may be allotted by rotation to different constituencies in a Municipality.
(4) The offices of Chairpersons in the Municipalities shall be reserved for the SCs, the STs and women in
such manner as the Legislature of a State may, by law, provide.
(5) The reservation of seats under clauses (1) and (2) and the reservation of offices of Chairpersons (other
than the reservation for women) under clause (4) shall cease to have effect on the expiration of the period
specified in Article 334.
(6) Nothing in this Part shall prevent the Legislature of a State from making any provision for reservation
of seats in any Municipality or offices of Chairpersons in the Municipalities in favour of backward class of
citizens.
Source: Constitutional Provisions Relating to Village Panchayats and Municipalities in India (1999: 12).
Municipal Management Practices

Municipalities follow various practices to discharge their duties. This sub-section includes three
important management practices which describe the manner in which municipalities function.
Municipal Meetings and Proceedings
Decisions on various municipal matters, such as superintendence of municipal administration,
planning for infrastructure facilities, approval of municipal budget, etc., are taken in the meetings
of the local government. Meetings are held periodically during which resolutions22 are passed on
the basis of voting.
Participation in municipal meetings is not restricted to any category of person and may include the
elected, nominated and ex-officio members, and other appointed authorities/officers associated
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with the local government. Besides, every meeting is open to the public. However, decisions to
accept or reject resolutions are taken only by the elected members (councillors, mayor/president23)
who possess powers for voting. For this reason, the elected members, who are representatives of
the citizens in the local government, are important actors involved in the decision-making process.
Furthermore, accepted resolutions are implemented only under the supervision of the Stateappointed municipal commissioner/executive officer, who possesses executive powers. The role
of other participants is to provide assistance on various technical, financial and legal matters (Table
2.6).
Table 2.6: Role of Select Municipal Members and Authorities

S. No.
1
Members/Authorities
Mayor/President
2
3
4
5
Councillor
Ex-officio Member
Nominated Member
Municipal Commissioner/
Executive Officer
Source: State Municipal Acts.
Role
General supervision over all officers & works of local
government
Presiding officer at municipal meetings
Empowered to vote for resolutions only in the event of
equality of votes
Empowered to vote for resolutions
Spend funds received from government on development works
within constituencies
Ensuring better municipal administration
Exercise of executive powers
Some important aspects related to the conduct of municipal meetings that are common to most
municipalities in India are illustrated in Table 2.7. In municipal corporations, there are two
important decision-making bodies, namely the corporation and the executive committee. Whereas
the municipal administration of a city is vested in the corporation, it may delegate any of its
functions to the executive committee or any other committee of the corporation. The corporation,
comprising the mayor and all councillors (i.e., elected ward representatives), nominated members
and ex-officio members, is required to meet at least six times during a year for the transaction of
business, i.e., for taking decisions on municipal matters.24 The quorum for transaction of such
business is at least one-half of the councillors. The executive committee, on the other hand,
consists of the mayor, who is the ex-officio chairperson of the executive committee, and a select
number of councillors, who are elected from within the corporation at its first meeting after
general elections. The executive committee is required to meet once in a month and at least onefifth of the total number of councillors must be present throughout the meeting.
Page 15
In municipal councils and nagar panchayats, meetings should be held at least once in a month for the
transaction of business, in which not less than one-third of the total number of councillors should
be present.
Table 2.7: Meetings of Urban Local Governments
Description of
Item
Decision-making
body
Corporation
(elected,
nominated, exofficio members)
Presiding officer
Executive
Committee
(select number of
elected members)
Mayor
Municipal
Council
Council
(elected,
Nagar Panchayat
Panchayat
(elected,
Chairperson/
President
Frequency of
meeting
Six times a year
Once a month
Once a month
Quorum
One-half of total
members
One-fifth of total
members
One-third of total members
Basis for
accepting/
rejecting
resolutions
Voting by elected members

(Councillors, Mayor)
Voting by elected members

(Councillors, Chairperson)
Source: State Municipal Acts.
Details such as the names of members present in a meeting, and the proceedings held and
resolutions passed at a meeting are recorded in the minute book on completion of a meeting. The
minutes are read out at the meeting or at the next ensuing meeting and certified as passed by the
signature of the presiding officer (i.e., mayor in case of municipal corporations and chairperson in
case of municipal councils/nagar panchayats), unless objected to by a majority of the members
present. Every resolution passed by the urban local government at a meeting is to be published in
the local language in a newspaper approved by the State government for purposes of publication
of public notices. In case such paper is not published in the district/division in which the urban
local government concerned is situated, this information is to be displayed on the notice board of
the municipal office and the District Collectors office for three consecutive days. Copies of every
resolution passed by the urban local government at a meeting are to be forwarded to the
prescribed authority and the District Magistrate within a specified number of days from the date of
the meeting. If a need is felt by the decision-making group to alter the wordings of minutes at a
later stage, such alteration is to be notified by publication or communicated to the prescribed
authority and the District Magistrate. A resolution of the urban local government cannot be
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modified or cancelled within six months after it is passed unless previous notice is given and
except by a resolution supported by a select number of members of the urban local government.
Municipal Infrastructure Project Cycle
There are several stages in the planning and implementation of infrastructure projects, namely:
decision-making; planning and design/formulation; financing; execution/implementation; and
monitoring and supervision. The following sub-sections provide details on each of these stages
(see also Figure 2.2).
Figure 2.2: Stages in Project Planning and Implementation

DECISION-MAKING
Identification of projects in municipal meetings
Voting on resolution by elected members
Preparation of report by presiding officer on decisions taken
Dispatch of application to higher authorities for administrative approval and technical sanction
PLANNING AND DESIGN/FORMULATION

Conduct of preliminary and detailed surveys
Preparation of plans, specifications and estimates
FINANCING
Identification of funding source (local, state, centre, external assistance)
Transfer of funds/loans
EXECUTION/IMPLEMENTATION
Publication of advertisement in newspapers for inviting tenders from private contractors
Sharing of information (i.e., project details, tenders, etc.) with all members and authorities
Selection of contractors and signing of project contract
Commencement of construction activity at site
MONITORING AND SUPERVISION

Maintenance of record on physical and financial progress of projects
Decision-making
Infrastructure projects to be implemented at the local level are identified by the decision-making
group during municipal meetings. As mentioned earlier, the group comprises persons with diverse
backgrounds, such as the elected, nominated and ex-officio members and the appointed
authorities. The matter is discussed in the meeting and a resolution is passed on the basis of
Page 17
majority of votes cast by the elected members present at the meeting of the urban local
government.
Municipalities can take a decision to undertake projects on their own involving expenditure up to a
certain limit, and if their own resources permit them to do so. When expenditure for a proposed
project exceeds the defined limit, or when the municipality does not possess adequate funds,
administrative approval of competent authority at the State level is obtained.
An application, along with information on the decision taken by the local government with respect
to implementation of identified infrastructure projects, and rough estimates and plans of the
proposed work, is prepared under the supervision of the presiding officer and sent to the
prescribed
authority
at
the
state/division/district
level
for
their
administrative
approval/ratification and technical sanction.

Planning and Design/Formulation
Work on planning and design of new infrastructure projects begins upon an approval of the
project proposal by the higher authorities at the state/district level. This task is entrusted to the
municipal engineer, who conducts the surveys, prepares the plans, specifications and estimates,
and executes the work.
Financing
Funds for meeting the cost of new infrastructure projects identified by municipal governments are
arranged from various sources. In recent years, there is an emphasis on strengthening the
municipal financial practices, so that the costs required for project implementation are met from
their internal (or own) sources, viz., taxes, and non-taxes. However, due to the persistent weak
financial condition of municipal governments, there exists a practice of funds being transferred
from a number of external sources.
Execution/Implementation
With the arrangement of finance for the purpose of undertaking project-related physical capital
works, urban local governments take necessary steps towards the execution of the project. They
may use their own manpower resources for this purpose. However, the most common practice is
to enter into contracts with private contractors. In the selection of contractors, an advertisement,
with details on the nature of work to be undertaken by the contractor, is published by the urban
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local government in popular newspapers available in the town/district, for inviting tenders25 from
private contractors. Subsequently, a project contract is signed for the commencement of
construction activity at the identified site.
Monitoring and Supervision
The systematic monitoring and supervision of every infrastructure project to be implemented at
the local level is an important exercise, which provides clear information on the stage through
which a project is passing. Several infrastructure projects are identified by municipal governments
and other State/local-level agencies every year for implementation, and coordination among the
agencies in the integrated development of civic infrastructure is essential. Some State governments
have constituted a task force at the State-level to oversee, coordinate and monitor the progress of
project implementation. Under this arrangement, the physical and financial progress of all
infrastructure projects identified at the beginning of each financial year by urban local
governments and other agencies is carefully monitored. An example of the format used by some
local governments to maintain this information is illustrated in Table 2.8.
Table 2.8: Monitoring of Urban Infrastructure Projects

Physical Status
Name of
implementing
agency
Project
Description
Category
Municipal
Corporation,
Place X
Funding Status
Tied-up &
available
Yes
Construction of
Tube well
at Place Xx
Tied-up but
not yet
available
Water Supply
Not tied-up
Estimated Cost
(in million
rupees)
2.50
Sent for
funding
Source of
funding
Source:
Implementation Status
Govt. of India
Estimates
prepared
Yes
Estimates
sanctioned
Tenders invited
Yes
Contract signed
Work started at
site
Physical work <
50 %
Physical work >
50 %
Yes
Yes
Physical
work
complete
Foundation stage
Yes
Site inspection
Inauguration
Yes
-
Yes
Yes
Field survey.
Page 19
Committee System in Municipalities

A municipality is the apex body, which is empowered to constitute various sub-committees.26 For
this purpose, the sanction of the State government is required. A municipality may delegate all or
any of its powers and functions to a sub-committee. Sub-committees are, therefore, constituted
for assistance in administrative matters. This helps in the distribution as well as in the speedy
implementation of works. Each sub-committee consists of about four or five members who are
elected annually from amongst the councillors. In municipal councils, the president or the vicepresident or an elected member of the municipality is the chairperson of the sub-committee. Subcommittees function in almost the same manner as the municipality, i.e. meetings are held
regularly; decisions on work are taken by casting vote; proceedings are recorded in the minute
book; etc. A final decision on any work to be implemented is, however, taken during the meeting
of the municipality and is based on the proceedings of the sub-committees.
Municipal Finance Practices
Municipalities require a substantial amount of money to execute their functions. They derive this
money from various internal and external sources (Table 2.9). Internal sources comprise income
generated from various taxes and non-taxes levied by the municipality. External sources include
funds obtained (in the form of grants, loans, etc.) from the Central government, State government,
domestic institutions, financial intermediaries, capital markets, and bilateral and multi-lateral donor
agencies. Most municipalities in India are unable to generate adequate funds from their internal
sources. This is mainly due to the following reasons: (a) low level of services provided to citizens;
(b) deficiencies in calculating the tax, non-tax rates; (c) reluctance in imposing or increasing direct
taxes; and (d) inadequate attention to citizens grievances. This leads to a low recovery from
internal sources. Municipalities are, therefore, heavily dependent on external sources. The budget
statements of several municipalities show that they obtain as much as 80 per cent of their income
from external sources. It may be mentioned here that in recent times and due to a global trend
towards decentralisation, attempts have been made to identify new avenues for mobilising
resources for municipalities, such as capital markets, financial intermediaries, etc. Furthermore, a
number of innovative practices are visible at the local level, which aim at raising the financial
resources of local governments.27 This phenomenon is generally observed in the case of larger
urban centres governed by municipal corporations. Other municipalities continue to depend on
traditional sources, namely the Central and State government grants and loans.
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Table 2.9: Sources of Funds for Municipalities

Internal
Sources
1. Taxes
2. Non-taxes
Description
Property tax,
advertisement tax,
vehicle tax, etc.
User charges;
Licence and other fees;
Cess; Duties;
Tolls;
Rents from properties;
Receipts from markets,
slaughter houses, fairs
and renting of road
sides, etc.
External Sources
Description
1. Central
government28
Budgetary allocations, central

finance commission, etc.
2. State government29
Budgetary allocations, state finance

commission, shared taxes with local
government entertainment tax,
motor vehicle tax, etc.
HUDCO, LIC, ILFS, IDFC, etc.
3. Domestic
institutions30
4. Financial
intermediaries31
5. Capital markets32
6. Bilateral and multilateral donor
agencies33
TNUDF, KUIDC, GMFB, etc.
Municipal bonds, etc.

World Bank, United Nations,
WHO, USAID, DFID, ADB, JBIC,
AUSAID, etc.
Source: Literature review.
Conclusion
This review has shown that the form of urban local governments in India has changed over time.
An appraisal of the evolution process of municipalities in India reveals that this change is due to a
series of reforms initiated from time to time. In the ancient period, municipal administration was
in the hands of the ruling class or the ruling government and their subordinate offices and
departments. Subsequently, steps have been taken to make municipalities more and more
autonomous, participatory, representative, transparent, accountable and dynamic.
The Constitution (seventy-fourth amendment) Act enacted by the government of India during the
year 1992 is a landmark initiative in this direction. It is for the first time that a number of
provisions to strengthen municipalities have been inserted in the Indian Constitution. Before the
enactment of the Act, local government was a State subject and its administration was entirely left
in the control of the State legislature. Although, municipalities continue to be governed by the
respective State legislatures, it has been made mandatory for the State governments to revise their
municipal laws in accordance with the recent Constitutional provisions. It is understood that
municipalities in India are being slowly empowered in various ways with the objective that they
would emerge as viable units of governance at the local level and would be able to discharge their
duties and powers in an efficient manner.
Page 21
In addition to the aforesaid legislative reforms, the Indian government has taken a number of
steps for improving local-level governance in recent times. Various urban development
programmes, schemes and practices have been initiated for the benefit of urban citizens and the
local government. Important among these are the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM)34, the Urban Infrastructure Development Scheme for Small and Medium
Towns (UIDSSMT)35, the Model Municipal Law (MML)36, the e-Governance Mission37, Report
Cards on Urban Services38, Citizens Charter on Municipal Services39, the Mayor-in-Council form
of government40, Municipal Accounting Reforms41, Property Tax Reforms, issuance of tax-free
Municipal Bonds, and schemes such as Pooled Finance Development (PFDS) 42 and City
Challenge Fund (CCF) 43 , promotion of private sector participation 44 and community
participation45.
An important issue that arises here pertains to the condition of urban local governments and the
urban areas in the light of recent urban sector reforms. The present scenario is such that several
legal reforms are yet to be implemented throughout the country and other reforms are visible only
in a few large urban centres of the country. Furthermore, there is enough evidence to prove that
the legal reforms, characterised by devolution of powers and functions to municipalities, conduct
of regular and fair elections to municipalities, reservation of seats in municipalities, constitution of
various types of committees, etc., as well as other reforms, have not brought about a significant
change in the functioning of a large number of urban local governments. It would be useful to
carefully evaluate the impact of recent reforms and assess the level of autonomy, participation,
efficiency, equity, transparency, accountability and the rule of law at local government level by
using suitable indicators of good urban governance.
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III. The Case Studies

This section provides information on the important characteristics of six urban local governments
selected for this study. The information presented on each local government includes an account
on their constitution and governance, duties, composition, sub-committees, finance, initiatives and
problems. Wherever necessary, a reference is made to the initiatives of the State government.
Bahadurgarh (Haryana)
Brief Town Characteristics
Bahadurgarh is situated in Jhajjar district in the State of Haryana. It is located at a distance of
about 29 kms. from Delhi, the national capital, which lies to its east, and 45 kms. from Rohtak,
another important town in the State. Bahadurgarh has emerged as an important industrial centre in
the State. The town has a total population of 119,846 and an area of 20 sq. kms. (Census of India,
2001a and b). It is divided into 31 municipal wards for administrative purposes. It is reported that
there are 12 slum pockets in the city with a total population of 42,016.
Local Government Profile
Constitution and Governance
It is reported that a local government (Municipal Committee) was first set up in the town in 1885.
At present, the town is governed by a Municipal Council as per the provisions of the Haryana
Municipal Act, 1973. This Act has been amended 33 times since its enactment in 1973. As per the
Act, smaller urban areas in the State with population exceeding 50,000 but not exceeding 500,000
are to be governed by Municipal Councils. The Act was enacted to regulate the composition,
functions, taxation and allied matters of ULBs in Haryana. In addition, several rules and byelaws
have been framed on various subjects like municipal accounts, delimitation of wards, management
of municipal properties and construction of buildings, etc., to facilitate the working of the
municipalities. It may be mentioned here that the present State of Haryana was formed in 1966
after it was separated from the State of Punjab. All municipalities in the State were previously
governed by the Punjab Municipal Act, 1911.
Page 23
Duties
The State government may, by order, entrust municipalities with such powers and functions as
institutions of self-government and assign them 18 tasks listed in the Twelfth Schedule (see Box
2.2).
The State government has overriding powers to take over any of the functions relating to
management (i.e., maintenance or construction) of water works, sewerage works or roads for a
period not exceeding ten years, in case the municipality shows neglect in performing its duties.
Accordingly, the maintenance and provision of water supply and sewerage was taken over by the
State government from the ULBs in 1993-94 and handed over to the State Public Health
Department due to the weak financial position of ULBs in the State.
The ULBs have been performing various functions and hence, no additional functions/services
have been transferred to them subsequent to the recent constitutional amendments of 1992. The
exception is that of primary schools management, however, it is reported that the manpower and
financial powers in this regard are still with the State-level Education Department.
The functions of municipalities in the State may be classified in the following broad categories: tax
collection, fire management, engineering development works, sanitation, rent collection of
municipal property, arrangement for street lighting and gardening, and general supervisory roles
concerning administration and accounts.
It is reported that solid waste management and maintenance of street lights are important
functions looked after by the municipality; and the responsibility for the maintenance of water
supply and sewerage services has been transferred to the State Department in 1993 due to the
weak financial position of the local government and due to a shortage of technical staff.
Composition
The administrative structure created by the State government for the functioning of municipalities
in Haryana is presented in Table 3.1. The main actors in municipal governance from the State to
the Local level include the Minister-in-charge of Local Self Government and the Director of Local
Bodies at the State level, the Deputy Commissioner at the District level and the Chairperson and
Executive Officer at the Municipal/local level.
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Table 3.1: Administrative Structure for the Functioning of Municipalities in Haryana

S. No.
1
Level
State Government
Administrative Posts
Minister in charge of Local Self Government
Senior level IAS officer
2
State Department
Director (senior IAS officer), Directorate of Local Bodies
Two Deputy Directors
Fire Officer
Accounts Officer
Staff
3
District
Deputy Commissioner
Local Fund Assistant
4
Municipality
President/Chairperson
Executive Officer
Medical Staff, Vaccinators, Inspectors, Foremen, Station
Fire Officers, Leading Firemen, Assistant Superintendent,
Assistant Accountant, Tax Collectors, Supervisors, Clerks,
Peons, Sweepers, other Class IV employees, etc.
Source: Government of Haryana (1997: 99-100).
At the local level, Bahadurgarh Municipal Council is represented by: (a) elected members, i.e., a
President/Chairperson and 31 Councillors; male and female councillors are 20 and 11 respectively;
SC and BC councillors are 3 and 2 respectively; seats are reserved for the scheduled castes, women
belonging to the scheduled castes, other women, and two seats are reserved for persons belonging
to the backward classes; elections were held in the year 2004; (b) nominated persons, namely
members of the House of the People and the Legislative Assembly of State representing
constituencies which comprise wholly or partly the municipal area, and members of the Council of
States; and (c) appointed staff, i.e., an Executive Officer, 48 other employees (such as Secretary,
Municipal Engineer, Junior Engineer, Medical Officer of Health, Chief Sanitary Inspector, Sanitary
Inspector, Sanitary Supervisor, Accountant,
etc.), and 110 Sweepers. About 16 posts in the
municipality are vacant, which include a Municipal Engineer, Junior Engineer, Head Clerk,
Sanitary Inspector, Vaccinator, Fire Van Drivers (3), Firemen (2), Leading Fireman, Gardeners (2),
and Guards (3).
Sub-Committees/Committees
The Haryana Municipal Act, 1973 provides for the appointment of three sub-committees by the
municipality, namely Finance, Public Works and Buildings, and Sanitation and Water Supply, to
assist in its administration. The duties of each sub-committee are listed in Table 3.2.
Page 25
Table 3.2: Duties of Sub-committees in Municipal Councils of Haryana

S. No.
1
Name of Subcommittee
Finance
Duties
Preparation & submission of budget estimate to the municipality

on time
Monthly & annual accounts statements
Statement of grants, loans and advances
Imposition, assessment & settlement of objections, collection &
remission of taxes, rents, & fees & settlement of objections
Acquisition, sale & lease of municipal properties
Raising of loans
Matters relating to schools, reading rooms, libraries, lighting &
fire brigade
All other matters affecting the finances of the municipality
2
Public Works and
Enquire & report on all matters relating to municipal works,
Building
maintenance & verification of municipal properties, roads &
buildings under the control of the municipality; and supervision
of all works connected with buildings, roads, drains, etc.
Deal with all cases of encroachments & projections
Consider town planning & building schemes
Consider matters relating to levy & recovery of development
charges
3
Sanitation and Water
Enquire into & report on all matters relating to sanitation &
Supply
health
Source: The Haryana Municipal Act 1973 (2005: 505-7).
Finance
The State government of Haryana observes, the financial position of ULBs in the State is
precarious. Most are not in a position to even pay salaries to their employees. This position has
further worsened due to pay revision and growth in urban population, mainly due to migration of
labour force from neighbouring States due to rapid industrialisation and proximity of Haryana to
the National Capital Territory of Delhi (Government of Haryana, 2003: 29).
As per the Haryana Municipal Act, 1973, the ULBs are empowered to impose various obligatory
and discretionary taxes and non-taxes (Table 3.3).
Table 3.3: Obligatory and Discretionary Taxes/Non-taxes as per the Municipal Act
S. No.
A
1
2
B
1
2
Description of Taxes
Obligatory taxes/Non-taxes
A tax payable by the owner on building and lands, as the State government may, by notification,
direct, of the annual value of such buildings and lands
A duty on the transfer of immovable properties situated within municipal limits
Discretionary taxes, tolls and fees
Tax on professions, trades, callings and employments
Tax on vehicles, plying for hire or kept within municipality
Page 26
Rumi Aijaz
S. No.
3
4
5
6
7
8
Tax on animals used for riding, draught or burden, kept for use within municipality
Tax on dogs kept within municipality
Show tax
Toll on vehicles entering the municipality
Tax on boats moved within municipality
Tax on consumption of electricity at the rate of not more than five paise for every unit of
electricity consumed by any person within municipal limits
9
Fire tax
10
Sanitation tax
11
A tax on driving licences issued under the Motor Vehicles Act, 1988 within the Municipality
12
A development tax on the increase in urban land values caused by the execution of any
development or improvement work
13
A general tax not more than 15 % of the annual value of buildings and lands within the
municipal area
14
Fee with regard to pilgrimages
15
Fee with regard to drainage
16
Fee with regard to lighting
17
Fee with regard to scavenging
18
Fee for cleansing of latrines and privies
19
Fee in the nature of costs for providing internal services46 under the scheme framed under
section 203 of the Municipal Act
20
With the previous sanction of the State government, any other tax, toll or fee which the State
Legislature has power to impose in the State under the Constitution of India
Source: The Haryana Municipal Act, 1973 (2005:179-81).
The income and expenditure account of Bahadurgarh Municipal Council for the period 2004-5 is
presented in Table 3.4.
During this period, the Council generated an income of Rs. 62.20 million. More than 80 per cent
of the income was generated from five sources, namely stamp duty (24.29 per cent), development
charges (19.97 per cent), house tax (16.74 per cent), rent of shops (10.25 per cent) and electricity
duty (9.88 per cent). Stamp duty and development charges have contributed significantly due to
the expansion of industrial units and residential colonies. The taxes and non-taxes levied by the
municipality are listed in Table 3.5. The Council generated about 86 per cent of its income from
taxes (21 per cent) and non-taxes (65 per cent).
Table 3.4: Income and Expenditure Pattern of Bahadurgarh Municipal Council, 2004-5
S.
No.
1
2
3
4
Income Head
Interest on
investment
Miscellaneous
income
House tax
Stamp duty
Actual
Income
(in Rupees)
108,538
Percentage
to Total
Income
0.17
S.
No.
5,017,187
8.07
a.
Establishment of
staff
General staff pay
10,412,141
15,108,573
16.74
24.29
b.
c.
House tax pay

Surplus octroi pay
1.
Expenditure Head
Actual
Expenditure
(in Rupees)
21,715,218
Percentage
to Total
Expenditure
35.46
1,868,210
832,545
393,065
Page 27
S.
No.
Income Head
5
6
7
8
D.T.L. Fee
V.L. Fee
Show tax
Building application
fee
Copying fee
Rent of shops
Sale of land
Tehbazari fee
(Hawkers)
Electricity duty
Fire call charges
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
P.F.A. licence fee

Auction of dead
animals
Development
charges
Composition fee
Fire tax
Trade tax
Motor tax
Road token tax
Slaughter house fee
Advance and
deposits
Total Income
Actual
Income
(in Rupees)
100,660
40,900
7,808
304,708
Percentage
to Total
Income
0.16
0.07
0.01
0.49
13,877
6,373,892
0
45,505
S.
No.
d.
e.
f.
g.
Fire staff pay

Garden staff pay
Works staff pay
Direction staff pay
Actual
Expenditure
(in Rupees)
2,043,782
257,929
582,210
102,077
0.02
10.25
0.00
0.07
h.
i.
j.
k.
Tractor driver pay

Vaccinator pay
Removal staff pay
Part time L.A. pay
325,005
84,627
12,780,372
21,973
6,143,301
41,100
9.88
0.07
l.
m.
20,284
0
0.03
0.00
n.
o.
Retrial benefits pay

Arrears of A.D.A. &
others pay
T.A. pay
Advance to employees
1,633,745
83,905
55,000
12,423,700
19.97
47,150
1,351,041
0
570,205
674,289
0
3,395,555
0.08
2.17
0.00
0.92
1.08
0.00
5.46
2.
a.
b.
c.
d.
e.
f.
Development works
Office original works
Office repairs
Development of parks
Repair of parks
Construction of shops
Construction of drains
28,537,850
295,371
299,970
968,218
0
395,987
10,482,474
46.61
62,200,414
100.00
g.
h.
i.
C.C. pavements
Construction of roads
Improvement of
sites/NCR share
Repayment of loans
Contingencies
Office
Fire
Park
Works
P.O.L. expenditure
Purchase of vehicles
Street lights/lights
Sanitation
Miscellaneous
Law charges
Election expenses
Audit fees
1 % DUD share
Electricity bills
Miscellaneous
expenses
Unclaimed deed body
NCR M.C. share &
other government
share
Advance and deposits
Total Expenditure
13,158,278
2,837,552
21.49
3.
4.
a.
b.
c.
d.
e.
f.
g.
h.
5.
a.
b.
c.
d.
e.
f.
g.
h.
i.
Expenditure Head
Percentage
to Total
Expenditure
20.87
650,773
100,000
500,000
1,985,632
212,675
40,665
0
66,197
438,608
618,050
463,957
145,480
8,493,253
24,396
58,558
0
0
4,583,701
17.12
0.82
3.24
13.87
7.49
263,711
33,120
0
3,529,767
61,231,953
Source: Budget of the municipality.
Page 28
100.00
Rumi Aijaz
Table 3.5: Taxes and Non-taxes Levied by Bahadurgarh Municipal Council, 2004-5
S. No.
Taxes
1
2
3
House tax
Show tax
Fire tax
4
5
Motor tax
Road token tax
Total income
from taxes
Amount
(in Rupees)
% to
Total
Income
from
Taxes
10,412,141
7,808
1,351,041
80.00
0.06
10.38
570,205
674,289
4.38
5.18
13,015,484
100.00
Per cent of
income from
taxes to total
income of the
Council
S. No.
Non-taxes
Amount
(in Rupees)
% to Total
Income
from Nontaxes
15,108,573
100,660
40,900
37.15
0.25
0.10
Stamp duty
D.T.L. fee
V.L. fee
Building
application fee
Copying fee
304,708
13,877
0.75
0.03
6
7
Rent of shops
Tehbazari fee
6,373,892
45,505
15.67
0.11
Electricity duty
6,143,301
15.11
Fire call charges
41,100
0.10
10
P.F.A licence
fee
Development
charges
Composition
fee
Total income
from nontaxes
20,284
0.05
12,423,700
30.55
47,150
0.12
40,663,650
100.00
1
2
3
4
20.93
11
12
Per cent of
income from
non-taxes to
total income of
the Council
65.38
The Council incurred an expenditure amounting to Rs. 61.23 million during the same period. The
main items of expenditure were establishment of staff (i.e., staff salaries) 35.46 per cent and
development works (i.e., construction of pavements, drains and roads, etc.) 46.61 per cent. A
high proportion of the expenditure went to the conservancy (removals) staff pay (20.87 per cent),
construction of drains (17.12 per cent) and pavements (21.49 per cent), and payment of electricity
bills (7.49 per cent). The solid waste management sector accounted for about 21 per cent of the
expenditure.
Page 29
The expenditure pattern of the Council reveals that the following works related to urban
development have been given attention: development of parks; construction of shops;
construction of drains, pavements, and roads; site improvement; street lights and sanitation.
State/Local Initiatives
The measures taken by the State government of Haryana and the local government are listed
below.
With the enactment of the 74th CAA, 1992, the Haryana Municipal Amendment Act, 1994 and
the Haryana Municipal Corporation Act, 1994 have also been enacted. Furthermore, the
Haryana Finance Commission Rules have been formulated.
The State Government has made strenuous efforts to raise additional resources by
strengthening tax administration, effecting better recoveries from existing sources and
exercising austerity measures to contain non-development expenditure.
The SFC recommendations lay emphasis on sharing of taxes, levies and fees, etc., between
State and local bodies and measures to improve the financial position of ULBs to make them
self-reliant (Table 3.6).
Other SFC recommendations include: freezing staff strength to bring establishment

expenditure to a manageable level; improve efficiency and productivity by privatising services
and mechanisation of operations; creation of two apex level organisations which would
provide access to institutional finance; simplification in house tax assessment procedure; need
to recover user charges from beneficiaries; etc.
Some SFC recommendations have not been accepted by the State Government due to
financial constraints.
Solid waste management: 70 per cent of the area is given on contract due to less number of
sweepers in the local government. Contract is given on competitive rates. This is more
economical for the local body.
New taxes imposed: (a) road tax. This is collected quarterly; 5 per cent of total tax collected by
State government is given to the local body; (b) driving licence. The local body earns a fixed
rate of Rs. 100 from every licence issued; (c) registration of new vehicles. The local body earns
from every new vehicle registered as per the following rates: two wheeler (Rs. 100); car (Rs.
500); and (d) tax on consumption of electricity. This has been increased by 5 times from 1
paisa to 5 paise per unit.
Page 30
Rumi Aijaz
Table 3.6: First SFC Recommendations and Actions Taken, Haryana

S. No.
1
5
6
8
9
10
First SFC Recommendations

(for the period 1997-2001)
Principle of transfer of resources to local bodies
a. Tax on vehicles 20 % of net proceeds on account of
taxes on vehicles to be transferred to ULBs each year;
proceeds would be primarily used for maintenance &
construction of roads in municipal areas
b.
Entertainment duty and show tax 50 % of net income

from entertainment tax and entire net income from show
tax to be transferred to ULBs each year
c.
Royalty on Minor Minerals 20 % of this royalty be

devolved on the ULBs
d.
Tax on consumption of electricity in municipal areas

Tax rate to be raised from 1 to 5 paise per unit; HSEB
should charge domestic rates from municipalities with
regard to street-lighting & water supply & not commercial
rates as is being done at present
Grant-in-aid
a. Rs. 50 per capita (based on 1991 census) to be provided to
all Municipal Councils/Committees; 10 % escalation to be
provided every year to compensate for the rise in cost &
increase in population
b. Grant of Rs. 50 per capita should also be made available
for areas which may be municipalized in future
Creation of Two Apex Organisations
a. Setting up of Haryana Water Supply & Sewerage Board
b. Setting up of Haryana Urban Development Finance
Corporation
Strengthening of the Local Government Directorate by
establishing a Town Planning Wing & an Engineering Wing; A
computerised local finance data base may also be created
within the Directorate so as to have a well organised
information system
Outstanding liabilities of municipalities to be waived off,
keeping in view their poor financial position
Annual Tenth Finance Commission grant may be divided
between various ULBs on a pro-rata basis in accordance with
their respective slum population; ULBs will be required to
provide matching contribution from their own resources
Revision of Octroi schedule involving change over from levy
on weight basis to advalorem basis so as to increase income
from Octroi collection; list of exemptions to be reduced to the
barest minimum; in case octroi is abolished, a suitable alternate
elastic source of revenue to be found
Change over from the present system of House Tax
assessment on the basis of annual rental value to the area
linked scheme
Thorough revision in Fees and Fines rates to generate greater
income
Water charges to be substantially raised so as to recover at least
the maintenance costs; likewise it is necessary to cover the
maintenance cost of sewerage & other services
Action Taken on Recommendations

Accepted with modification Net
proceeds to be transferred only for the
year 2000-1; Rs. 182 million transferred
Accepted with modification 25 % of
net income from entertainment tax &
entire net income from show tax; Rs. 35
million transferred
Not accepted
Accepted Rs. 83.2 million transferred
Not accepted
Not specified
To be further deliberated
To be further deliberated
Accepted Rs. 1.8 million transferred
Accepted
Accepted
To be considered in due course

Page 31
S. No.
11
12
13
14
Source:

Taxation of Central & State Government State Government
should initiate survey & assess the amount which is due to the
municipalities by way of service charges & take immediate
steps to recover the same; Likewise urgent steps should be
taken for the recovery of outstanding amount from the State
Government departments
Sanctioning of Budget Budget of Municipal Councils may be
entrusted to the Directorate as it is better suited to have a
closer watch on income & expenditure of larger municipalities
in the State
Training Training programmes for officials & non-officials
of ULBs should be duly organised & funds to the extent
necessary, be provided for the same
Delegation of Powers to the Directorate of Local Bodies
Some of the powers with regard to personnel & various other
matters should be delegated to the Directorate, which are
presently with the Deputy Commissioner or the State
Government
Government of Haryana (1997: 248-61).


Revision in formula for assessment of ARV: Property tax is one of the major sources of
revenue for municipalities. Generally, this tax is calculated on the basis of the Annual Rental
Value (ARV). However, due to difficulties in determining the actual rent charged for different
categories of buildings, many States in India have delinked property tax from the rental value
concept. The Bahadurgarh Municipal Council follows a revised formula for assessing the ARV
of a property: cost of land ( + ) cost of construction ( - ) age of building. Using this formula,
the gross annual value of building is worked out. In Bahardurgarh, the property tax rate is
fixed at a rate of 2.5 per cent of ARV on residential properties and 5 per cent of ARV on
commercial properties.
Training programmes: Haryana Institute of Public Administration (HIPA) conducts training

programmes for municipal functionaries.
Problems
The municipal functionaries have pointed out the following problems:
Shortage of funds: The municipal functionaries have reported an acute shortage of funds. In
this regard, the following observations have been made:
o Low recovery from house tax due to the reason that survey to assess the growth in the
number of properties has not been conducted since 2001. There is, however, a
proposal to conduct the survey and update records to improve recovery;
o No recovery from sale of land during the year 2004-5;
Page 32
Rumi Aijaz
o Recovery from development charges is low. There is a proposal to write to the Public
Health Department regarding disconnection of water/sewer connections of people
who have not deposited this charge;
o A slaughterhouse does not exist in the town and hence a fee from informal shops is
not collected. The Municipal Council is therefore losing this income. There is a
proposal to establish a temporary slaughterhouse. It is reported that informal shops
have not been inspected and that there is a need to check their record and ensure that
slaughtered animals are stamped.
Poor sanitation/solid waste management due to inefficiency among sweepers and lack of
supervision by sanitary staff.
Shortage of technical and other staff.
Negligible attendance of municipal functionaries in training programmes; no significant impact

of training.
Gurgaon (Haryana)
Gurgaon is situated in Gurgaon district in the State of Haryana. It lies to the south-west of Delhi,
the national capital, which is at a distance of about 10 kms. from the inter-state border. The town
has a total population of 172,955 (Census of India, 2001a). It is divided into 31 municipal wards
for administrative purposes. There are about 37,000 residential and 18,000 commercial properties
in the town.
At present, the town is governed by a Municipal Council as per the provisions of the Haryana
Municipal Act, 1973. As mentioned earlier, the present State of Haryana was formed in 1966 after
it was separated from the State of Punjab. All municipalities in the State were previously governed
by the Punjab Municipal Act.
Duties
The duties of municipalities existing in the State have been described in the earlier section on
Bahadurgarh. It is reported that solid waste management and maintenance of street lights are
Page 33
important functions looked after by the municipality; water supply and sewerage facilities are
maintained by the State Public Health Engineering Department (PHED); and roads are
maintained by the municipality, and the State Public Works Department (PWD).
Composition
Gurgaon Municipal Council is represented by: (a) elected members, i.e., a President/Chairperson
and 31 Councillors; male and female councillors are 18 and 13 respectively; seats are reserved for
the scheduled castes, women belonging to the scheduled castes, other women, and two seats are
reserved for persons belonging to the backward classes; elections were held in the year 2005; (b)
nominated persons, namely members of the House of the People and the Legislative Assembly of
State representing constituencies which comprise wholly or partly the municipal area, and
members of the Council of States; and (c) appointed staff, i.e., an Executive Officer, 132 other
employees (such as a Secretary, Municipal Engineer, Office Superintendent, Tax Superintendent
and Inspector, 2 Fire Station Officers, Accountant, 2 Junior Engineers, Fire Men and Drivers, 22
Clerks, Chief Sanitary Inspector, 2 Sanitary Inspectors, 2 Sanitary Supervisors, etc.), 399 Sweepers,
Gardeners, Peons, etc. About 168 posts in the municipality are vacant, including an Assistant
Town Planner, 3 Sub Fire Officers, 3 Building Inspectors, a Tax Inspector, an Assistant Sanitary
Inspector, 5 Leading Fire Men, 26 Fire Men and 13 Fire Drivers, 7 Gardeners, etc. (Table 3.7).
Table 3.7: Gurgaon Municipal Council Staff, 2005

S.
No.
Name of Post
Sanctioned
Posts
Executive
officer
Secretary
Asst. Town
Planner
Municipal
Engineer
Office
Superintendent
Tax
Superintendent
Fire Station
Officer
Accountant
Chief Sanitary
Inspector
Junior
Engineer
Sub-Fire
Officer
2
3
4
5
6
7
8
9
10
11
Vacant
Posts
S.
No.
Name of Post
Sanctioned
Posts
Filled up
Posts
Vacant
Posts
Filled
up
Posts
1
21
Leading Fire Man
1
1
1
0
0
1
22
23
Fire Man
Fire Driver
57
22
31
9
26
13
24
25
Refuse Collector
Driver
Car Driver
26
Tractor Driver
27
Clerks
23
22
1
1
1
1
0
0
28
29
Vaccinator
Fitter-cum-Driver
1
1
0
0
1
1
30
31
Sanitary
Supervisor
Fitter Coolie
Page 34
Rumi Aijaz
S.
No.
Name of Post
Sanctioned
Posts
12
Building
Inspector
Tax Inspector
Sanitary
Inspector
Work
Inspector
Light
Inspector
Sr.
Stenographer
Jr.
Stenographer
Store Keeper
13
14
15
16
17
18
19
20
Asst. Sanitary
Inspector
Vacant
Posts
S.
No.
Filled
up
Posts
0
32
2
2
1
2
1
0
Name of Post
Sanctioned
Posts
Filled up
Posts
Vacant
Posts
Gang Man
33
34
Water Carrier
Head Gardener
1
1
0
1
1
0
35
Gardener
25
18
36
Light Man
37
Guard
38
Peon
12
12
39
40
Sanitary
Superintendent
Sweeper
490
399
91
Grand Total
700
532
168
Source: Office of the local government.
Gurgaon Municipal Council is governed according to the provisions of the Haryana Municipal
Act, 1973. Hence, provisions relating to the appointment of sub-committees are the same as
described earlier in the case of Bahadurgarh (Table 3.2).
Finance
The income and expenditure account of Gurgaon Municipal Council for the period 2002-3 is
presented in Table 3.8. The office of the local government could not provide this information for
the period 2003-4 or 2004-5.
During this period, the Council generated an income of Rs. 121.84 million. Almost one-half of the
income was generated from two sources stamp duty (25.12 per cent) and tax on buildings and
land (21.20 per cent). The other sources from where less than 10 per cent of the income was
generated include development charges (6.70 per cent), grant-in-aid (6.23 per cent), motor vehicle
tax (6.02 per cent), and fire tax (5.03 per cent). The taxes and non-taxes levied by the municipality
are listed in Table 3.9. The Council generated more than 70 per cent of its income from taxes (33
per cent) and non-taxes (38 per cent).
The Council incurred an expenditure amounting to Rs. 108.09 million during the same period. The
main items of expenditure were salaries (about 33 per cent) and development works (about 44 per
Page 35
cent). Salaries of conservancy department (removals) staff were highest 18.46 per cent of the
total expenditure; and with respect to the development works, it is observed that a high
expenditure (34.85 per cent of the total expenditure) was incurred on the maintenance of roads.
Among the departments, the municipal works department and the public health department have
incurred high expenditure (about 60 per cent). The solid waste management sector accounted for
about 24 per cent of the expenditure.
development have been given attention: garden and roadside trees; parks; street lights; drainage;
sanitation; water supply; road maintenance; and development of shopping complex.
Table 3.8: Income and Expenditure Pattern of Gurgaon Municipal Council, 2002-3
S.
No.
Income Head
Actual
Income
(in Rupees)
% to Total
Income
S.
No.
376,323
0.31
5,238,248
4.30
8,160,037
7,585,439
6.70
6.23
b.
Establishment
salaries
Law charges
25,828,332
21.20
c.
Election expenses
1,406,442
1.15
301,378
d.
e.
0.25
Audit fees
Contingencies + 1 %
DLB share
Misc. unclassified
charges
Advance to municipal
employees
Original works
1.
1
2
Interest
Miscellaneous
receipts
A.
a.
3
4
5
6
7
Development charges
Grant-in-aid
Tax on buildings &
land
Profession or trade
tax
Trade licence fees
f.
8
Tax on animals
9
10
Motor vehicle tax

Parking fees
11
Vehicle fees
(rickshaw)
12
13
BA fees
Cinema show tax
14
Misc. (copying fees,

etc.)
15
Rents of land &

buildings
100
0.00
g.
7,333,871
144,000
6.02
0.12
88,857
0.07
h.
i.
B.
1,133,481
79,924
0.93
0.07
62,589
0.05
a.
(i)
b.
3,491,984
2.87
66,640
700
786,900
0.05
0.00
0.65
(i)
16
17
18
Sale of municipal land

Sale of trees
Tehbazari fees
(ii)
C.
Expenditure Head
Actual
Expenditure
(in Rupees)
% to Total
Expenditure
2,487,994
305,555
2.30
0.28
65,473
0.06
0.00
1,146,223
1.06
1,818,427
1.68
252,500
2,540,756
0.23
2.35
2,476,403
2.29
11,715
0.01
1,095,621
83,601
1.01
0.08
GENERAL
DEPARTMENTS
General
Repairs (municipal
buildings)
Tax & Licensing
Dept.
Octroi
Establishment
salaries
Taxes & Licence Fee
for Vehicles
Establishment
salaries
Contingencies
Municipal Properties
Page 36
Rumi Aijaz
S.
No.
Income Head
19
Stamp duty
20
21
22
Fire tax
Fire charges
Sale of sewage (low
cost)
Actual
Income
(in Rupees)
30,611,499
% to Total
Income
6,124,355
62,280
5.03
0.05
1,882
0.00
32,520
71,460
12,010
0.03
0.06
0.01
1,062,762
0.87
5,093,405
4.18
9,267,698
7,424,707
121,849,823
7.61
6.09
100.00
25.12
S.
No.
a.
(i)
23
24
25
Slaughter house fees

Licence fees
P.F. Ad.
26
27
Road cut
Sale of land in Vyapar
Sadan
(ii)
b.
(i)
(ii)
(iii)
D.
a.
(i)
28
Advance & deposits

Opening balance
Total Income
(ii)
(iii)
b.
(i)
(ii)
c.
(I)
(ii)
2.
a.
3.
a.
(i)
b.
(i)
c.
(i)
(ii)
d.
(i)
(ii)
(i)
(ii)
(iii)
(iv)
(v)
Expenditure Head
Rented lands and
buildings
Establishment
salaries
Contingencies
Garden & roadside
trees
Establishment
salaries
Contingencies
Parks
Public Safety &
Convenience
Lighting
Establishment
salaries
Street lights materials
Street lights
electricity bills
Fire
Establishment
salaries
Contingencies
Cattle Ponds
Establishment
salaries
Contingencies
EDUCATION
Public libraries and
museums
Newspapers
PUBLIC HEALTH
Direction
Establishment
salaries
Vaccination
Establishment
salaries
Plague & other
epidemic
Establishment
salaries
Contingencies
Conservancy
- Removals
Establishment
salaries
Contingencies
- Disposals
Establishment
salaries
Contingencies
Wheel barrows
Urinals/toilets
Low cost
Actual
Expenditure
(in Rupees)
% to Total
Expenditure
180,835
1,967
0.17
0.00
1,238,020
3,967
2,288,333
1.15
0.00
2.12
196,182
1,201,406
0.18
1.11
5,335,269
4.94
2,073,969
707,882
1.92
0.65
179,079
500
0.17
0.00
8,048
0.01
789,813
0.73
38,280
0.04
136,179
49,439
0.13
0.05
19,952,962
248,366
18.46
0.23
1,042,256
346,865
0
0
0
0.96
0.32
0.00
0.00
0.00
Page 37
S.
No.
Income Head
Actual
Income
(in Rupees)
% to Total
Income
S.
No.
Expenditure Head
(vi)
Maintenance charges
of refuse
collector/purchase of
vehicles
Drainage
Establishment
salaries
Contingencies
Drains
Solid waste
management
WATER SUPPLY
Machinery
Establishment
salaries
MUNICIPAL
WORKS
Direction
Establishment
salaries
Contingencies
Streets
Maintenance
metalled roads, unmetalled roads
Development of
shopping complex
RESERVE FOR
UNFORSEEN
CHARGES
e.
(i)
(ii)
(iii)
f.
4.
a.
(i)
5.
a.
(i)
(ii)
b.
(i)
c.
6.
7.
a.
b.
SUSPENCE
ACCOUNTS
Advance & deposits
Salaries to abolished
MCs staff
Total Expenditure
Actual
Expenditure
(in Rupees)
% to Total
Expenditure
514,885
0.48
4,650,681
267,662
652,957
4.30
0.25
0.60
3,752,677
3.47
243,566
0.23
1,213,810
62,941
1.12
0.06
37,671,997
34.85
565,154
0.52
405,022
0.37
9,278,016
8.58
509,663
108,092,916
0.47
100.00
The measures taken by the State government of Haryana and the local government are listed
below.
Solid waste management: Some area is given on contract due to less number of sweepers.
About 50 sweepers have been involved on contract. Contract is also given for vehicles
belonging to a private operator for the transportation of waste.
Revision in formula for assessment of ARV: Gurgaon Municipal Council follows the same
formula as mentioned earlier in the case of Bahadurgarh.
HIPA organises training programmes for officials & elected representatives.
Page 38
Rumi Aijaz
Table 3.9: Taxes and Non-taxes Levied by Gurgaon Municipal Council, 2002-3
S. No.
Taxes
Tax on
buildings &
land
Profession
or trade tax
Tax on
animals
Motor
vehicle tax
Cinema
show tax
Fire tax
Total
income
from taxes
2
3
4
5
6
Amount
(in Rupees)
% to
Total
Income
from
Taxes
25,828,332
63.35
1,406,442
3.45
100
0.00
7,333,871
17.99
79,924
6,124,355
0.20
15.02
40,773,024
100.00
Per cent of
income
from taxes
to total
income of
the Council
S. No.
1
2
3
4
5
6
7
Non-taxes
Amount
(in Rupees)
% to Total
Income from
Non-taxes
Development
charges
8,160,037
17.73
Trade licence
fee
301,378
0.65
144,000
0.31
88,857
0.19
1,133,481
62,589
2.46
0.14
3,491,984
7.59
Parking fee
Vehicle fee
(rickshaw)
BA fee
Copying fee
Rent of land
and buildings
Sale of trees
700
0.00
Tehbazari fee
786,900
1.71
10
11
12
13
Stamp duty
Fire charges
Sale of sewage
Slaughter house
fee
Licence fee
P.F. Ad.
Road cut
30,611,499
62,280
1,882
66.51
0.14
0.00
32,520
71,460
12,010
1,062,762
0.07
0.16
0.03
2.31
46,024,339
100.00
33.46
14
15
16
Total income
from nontaxes
Per cent of
income from
non-taxes to
total income of
the Council
37.77
Problems
Page 39
Pressure from some influential elected members regarding development of infrastructure in

their wards;
Corrupt practices adopted by clerks; some of them possess very low levels of education.
Earlier they were involved in octroi collection work but after its abolition they were deputed
for other works such as house tax related matters. Thus, the tax superintendent faces problems
in getting works done from such persons due to lack of technical knowledge;
Poor sanitation/solid waste management. There is no proper place for waste disposal. Waste is
disposed off on open lands at Mehrauli road side. There is a shortage of sweepers and vehicles;
Municipality levies licence fees for various purposes. Regarding manufacturing and sale of ice,
there is no check or supervision by municipal officials on the norms/standards required at the
site. Later ULB is held responsible in case of eventuality;
In the construction of roads, more expenditure is shown than what is actually incurred. Road
measurement is exaggerated;
The generator in possession of ULB is poorly maintained. It frequently breaks down;
Negligible attendance of municipal functionaries in training programmes; no significant impact

of training.
Alwar (Rajasthan)
Alwar is situated in Alwar district in the State of Rajasthan. It is located at a distance of about 170
kms. from Delhi, the national capital, which lies to its north-east, and 148 kms. from Jaipur, which
is another important town and the State capital, which lies to its south-west. There are several sites
of tourist interest located in and around the town, such as the Alwar Fort, Vinay Vilas Palace,
Sariska Palace, the Sariska wildlife sanctuary, rocky hills, and lakes, and hence it is an important
tourist centre. The town has a total population of 260,593 and an area of 49 sq. kms. (Census of
India, 2001a and b). It is divided into 50 municipal wards for administrative purposes.
The town is governed by a Municipal Council as per the provisions of the Rajasthan Municipalities
Act, 1959. Since its enactment in 1959, the Act has been amended 39 times. The Rajasthan
Municipalities (Second Amendment) Act, 1994 came into force with effect from May 1994 as a
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Rumi Aijaz
sequel to the 74th CAA. It is reported that there has been no change in the civic status of the town
since 1934.
Duties
The municipal Act of the State lists 23 obligatory and 25 discretionary duties to be performed by
local governments in the State (Table 3.10). The broad functions are public health and hygiene,
public safety and security, development, regulatory and miscellaneous.
Table 3.10: Obligatory and Discretionary Duties of Municipalities in Rajasthan

S. No.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Duties
Obligatory/Primary
Lighting public streets, places & buildings
Watering public streets & places
Cleaning public streets, places and sewers, & all spaces, not being private property, which are open to the
enjoyment of the public, whether such spaces are vested in the board or not, removing noxious vegetation
& abating all public nuisances
Removing filth, rubbish, night-soil, odour, or any other noxious or offensive matter from privies, latrines,
urinals, cess-pools, or other common receptacles for such matter or in pertaining to a building or
buildings
Extinguishing fires & protecting life & property when fire occurs
Regulating offensive or dangerous trades or practices
Removing obstructions & projections in public streets or places & in spaces, not being private property
which are open to the enjoyment of the public, whether such spaces are vested in the board or belong to
the State government
Securing or removing dangerous buildings or places & reclaiming unhealthy localities
Acquiring, maintaining, changing & regulating places for the disposal of the dead & of the carcasses of
dead animals
Construction, altering & maintaining public streets, culverts, municipal boundary marks, markets,
slaughter-houses, drains, sewers, drainage-works, sewerage-works, baths, washing places, drinking
fountains, tanks, wells, dams & the like
Construction of public latrines, privies & urinals
Obtaining a supply or an additional supply of water, proper & sufficient for preventing danger to the
health of inhabitants from the insufficiency or unwholesomeness of the existing supply
Naming streets & numbering houses
Registering births & deaths
Public vaccination
Suitable accommodation for any calves, cows or buffaloes required within the municipality for the supply
of animal lymph
Arranging for the destruction or the detention and preservation of such dog within the municipality as
may be dealt with under section 208 of this Act
Printing such annual reports on the municipal administration of the municipality as the State government
by general or special orders, requires the board to print
Paying the salary & the contingent expenditure on account of such police guards as may be required by
the board for the purpose of this Act or for the protection of any municipal property & providing such
accommodation as may be required by the State government under the law in force relating to police
Raising volunteer force with such functions & duties in relation to the protection of persons, the security
of property & the public safety as may be prescribed
Making arrangements for preparation of compost manure from night-soil & rubbish
Establishing & maintaining cattle ponds
Promoting population control, family welfare & small family norm
Page 41
S. No.
B
1
Duties
Discretionary/Secondary
Laying out, whether in areas previously built upon or not, new public streets & acquiring land for that
purpose, including land requisite for the construction of buildings or cartilages thereof, to abut such
streets
2
Construction, establishing, maintaining or contributing to the maintenance of the public parks, gardens,
libraries, museums, reading rooms, radio receiving stations, lunatic asylums, halls, offices, dharamshalas, rest
houses, encamping grounds & other public buildings & places
3
Constructing & maintaining where necessary, suitable sanitary houses for the habitation of the poor &
granting loans for the construction of such houses or for effecting necessary improvements connected
therewith
4
Providing accommodation for any class of servants employed by the board or granting loans to such
servants for the construction of houses subject to the rules prescribed in this behalf
5
Planting & maintaining road side & other trees
6
Taking a census & granting rewards for information which may tend to secure the correct registration of
vital statistics
7
Securing or assisting to secure suitable places for the carrying on of the offensive trades
8
Supplying, constructing & maintaining receptacles, fittings, pipes, other appliances whatsoever, on or for
the use in private premises, for receiving & conducting the sewage thereof into sewers under the control
of the board
9
Establishing & maintaining a farm or factory for the disposal of sewage
10
Providing music for the people
11
The promotion of public health or infant welfare
12
Contribution towards any public fund raised for the relief of human suffering with or without the
municipality
13
By a resolution passed at a general meeting & supported by one-half of the whole number of members,
any public reception, ceremony, entertainment, or exhibition within the municipality
14
The organisation or maintenance of shops or stalls for the sale of necessaries of life during scarcity
15
Holding fairs & exhibitions
16
Supply of milk
17
Establishing labour welfare centres for its employees & subsidising the activities of any association upon
or club of such employees by grant of loan for its general advancement
18
Organising or contributing to a Municipal Board union
19
Maintenance of ambulance service
20
Establishing & maintaining public hospitals & dispensaries & providing public medical relief
21
Providing facilities for anti-rabic treatment & meeting the expenses of indigent persons undergoing antirabic treatment within or outside the municipal limits
22
Housing & maintaining destitute orphans & cripples & maintaining maternity centres & child welfare
clinics
23
Establishing & maintaining primary schools
24
Preparation of plans for economic development & social justice; the performance of functions & the
implementation of the schemes that may be entrusted by the State Government to it, including those in
relation to the matters listed in the Twelfth Schedule of the Constitution of India
25
Any other matter not herein before specifically named which is likely to promote education or the public
health safety or convenience or the advancement of economic condition of the inhabitants of the board or
which is necessary for the carrying out of this Act, expenditure whereon is resolved by the board by the
votes of not less than two-thirds of the whole number of members & with the approval of the State
Government to be an appropriate charge on the municipal fund.
Source: Municipal Law in Rajasthan, Vol. 1 (2005: 292-4; 303-5).
The first State Finance Commission of Rajasthan has observed that the reality on ground
regarding the achievement of objectives of ULBs is far from the expectations of the
people.municipalities are not able to cover the majority of functions assigned to them.they
are not able to ensure quality of services (Government of Rajasthan, 1995:177). Similarly, the
Page 42
Rumi Aijaz
second SFC points out the deficiencies in urban basic service levels (Government of Rajasthan,
2001: 35).
It is reported that solid waste management and maintenance of street lights are important
functions looked after by the municipality; water supply and sewerage facilities are maintained by
the State Public Health Engineering Department (PHED); and roads are maintained by the
municipality, the Urban Improvement Trust (UIT) and the State Public Works Department
(PWD).
Composition
The Directorate of Local Bodies is the nodal agency at the State level to coordinate the activities
of ULBs. The Directorate is supported by various sections to perform and coordinate the activities
at the State level, namely Project Section, Engineering Section, Accounts Section, Establishment
Section, Statistical Cell, Vigilance Cell, Legal Cell, etc.
The staff in municipalities are drawn from various cadres Rajasthan Municipal Services,
Rajasthan Municipal Subordinate and Ministerial Services, Rajasthan Municipal Class IV Services
and Sweepers, and Other Staff (i.e., posts for Libraries, Power House, Garden, etc.). The
Municipal Councils are headed by Commissioners belonging either to the Rajasthan
Administrative Services or Rajasthan Municipal Service.
Alwar Municipal Council is represented by: (a) elected members, i.e., a President/Chairperson and
50 Councillors; male and female councillors are 33 and 17 respectively; seats are reserved for the
scheduled castes and/or the scheduled tribes, women belonging to the scheduled castes and/or
the scheduled tribes, other women, and the backward classes; elections were held in the year 2004;
(b) ex-officio members with a right to vote in municipal meetings, i.e., a member of the Rajasthan
Legislative Assembly; and a member of the House of the People; (c) nominated persons having
special knowledge or experience in municipal administration; and (d) appointed staff, i.e., an
Executive Officer (known as a Commissioner in A class towns of Rajasthan), and 492 other
employees (such as Secretary, Revenue Officer, Assistant Engineer, Assistant Accounts Officer,
Law Officer, Revenue Inspectors, Civil Works Engineers, Health Inspectors, Fire Men, Clerks,
Drivers, Guards, Peons, Water Carriers, and Sweepers. About 239 posts in the municipality are
vacant, including a Health Officer, Chief Sanitary Inspector, Sub Fire Officer, Fire Men, Office
Clerks, Drivers, Guards, Peons, 135 Sweepers, etc. (Table 3.11). Posts in the municipality are
Page 43
vacant due to two main reasons: (a) transfer of staff to other municipalities in the State; and (b)
posts of retired employees are usually not filled.
Table 3.11: Alwar Municipal Council Staff, 2005

S.
No.
Name of Post
Sanctioned
Posts
Filled up
Posts
Vacant
Posts
S. No.
1
2
3
Commissioner
Secretary
Revenue
Officer (Grade
II)
Health Officer
Assistant
Engineer
Asst. Accounts
Officer
Law Officer
1
1
1
1
1
1
0
0
0
22
23
24
Steno (Sr.)
Steno (Jr.)
Office
Accountant
1
1
0
1
1
0
25
26
27
28
1
5
1
0
29
30
31
32
33
4
5
6
7
8
9
Assessor
2
Revenue
5
Inspector
10
Asst. Revenue
4
Inspector
11
Civil Works
4
Engineer
12
Chief Sanitary
1
Inspector
13
Sanitary
3
Inspector
(Grade I)
14
Sanitary
3
Inspector
(Grade II)
15
Surveyor
1
16
Asst. Fire
1
Officer
17
Leading Fire
2
Man
18
Fire Man
27
19
Office
1
Superintendent
20
Office
6
Assistant
21
Office Clerk
18
Source: Office of the local government.
Name of Post
Sanctioned
Posts
Vacant
Posts
1
1
1
Filled
up
Posts
0
1
0
Driver
Light Inspector
20
1
13
1
7
0
Asst. Light
Inspector
Garden
Supervisor
Guard
Peon
24
60
10
51
14
9
Out-post Sub
Officer
Out-post Guard
34
Fitter/Welder/
Painter
Water Carrier
21
21
35
Gardner/Helper
0
0
1
1
36
37
Light Man
Manure Worker
1
24
1
16
0
8
38
Cleaner
23
0
4
1
39
40
58
1
39
1
19
0
41
Gang Man
Asst. Paper
Distributor
Sweeper
420
285
135
15
42
Grand Total
732
493
239
The Rajasthan Municipalities Act, 1959 provides for the appointment of the following committees
in Municipal Councils of the State (Municipal Law in Rajasthan, Vol. 1, 2005: 234-5): (a) Executive
Page 44
1
0
1
Rumi Aijaz
Committee; (b) Finance Committee; (c) Health and Sanitation Committee; (d) Building and Works
Committee; (e) Rules and Bye-laws Committee; and (f) Public Conveyance Committee.
There exist about ten sections/departments to look after the various municipal functions in
Municipal Councils General Administration, Accounts, Revenue, Public Health and Sanitation,
Legal Affairs, Garden/Parks, Garage, Street Lighting, Fire Fighting, and Public Works.
Finance
The first SFC of Rajasthan observes, most of the municipalities in Rajasthan are financially weak
and are in no position to meet the rising demand for municipal services. They are unable to
discharge their obligatory functions satisfactorily. Rapid growth of cities and towns is not matched
by a corresponding increase in their revenue. The performance of ULBs was dismal on
augmentation of revenue (Government of Rajasthan, 1995: 196).
As per the Rajasthan Municipalities Act, 1959, the ULBs are empowered to impose various
obligatory and discretionary taxes and non-taxes (Table 3.12).
Table 3.12: Obligatory and Discretionary Taxes/Non-taxes as per the Municipal Act
S. No.
A
1
2
3
B
1
2
3
4
5
6
7
8
9
10
11
12
13
Source:
Description of Taxes/Non-taxes
Obligatory taxes
A tax on buildings or lands or both situated within the municipal limits, either on their annual letting value
or on capital cost or at flat rate or by unit area base method or by any other method
An octroi on goods and animals brought within the limits of the municipality for consumption or use or
sale therein
A tax on professions and vacations
Discretionary taxes, tolls
Tax on vehicles and other conveyance plying for hire or kept within the municipality
Tax on dogs kept within the municipality
Tax on animals used for riding, driving, draught or burden when kept within the municipality
Toll on vehicles and other conveyances and on animals entering the municipality
Tax on boats moored within the municipality
Scavenging tax
Tax for the cleansing of private latrines or privies
A general sanitary tax for the construction or maintenance or both of public latrines and for the removal
and disposal of refuse
Lighting tax
Water tax for water supplied by the board, which may be imposed in the form of a rate assessed on the
annual letting value of building or lands or both or in any other form
Tax on trades and callings carried on within the municipality and deriving special advantages from, or
imposing special burdens on, municipal services
Tax on artisans
Any other tax which the State Legislature has power to impose under the Constitution
Municipal Law in Rajasthan (2005:309-10; 333-34).
Page 45
The income and expenditure account of Alwar Municipal Council for the period 2004-5 is
Table 3.13: Income and Expenditure Pattern of Alwar Municipal Council, 2004-5
S.
No.
Income Head
Octroi compensatory
grant
Building & land tax
Slaughter house fee
Building works &
construction fee
Applications
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Sign board
advertisements
Animal/other fairs
Copying & other
certificates
Small flour machine
Birth & death
certificates
17
Misc. income
Animal house
Food licence
Hotel byelaws
Road cutting
Tehbazari
(Fee from hawkers)
Rent of vehicles
18
Rent of quarters
19
20
21
Income from rent

Cycle stand
Dead animals
contract
Fish breeding
contract
Land licence fee
Interest on
investment
General grants
Land lease (annual
premium)
State finance
commission
Entertainment tax
compensation
Sale of land (from
public)
22
23
24
25
26
27
28
29
Actual
Income
(in Rupees)
Percentage
to Total
Income
S.
No.
Actual
Expenditure
(in Rupees)
Percentage
to Total
Expenditure
58,103,000
5,128,969
18,492
57.28
5.06
0.02
a.
b.
9,688,088
7,129,005
77,331
9.55
7.03
0.08
6,720
26,054
0.01
0.03
c.
d.
Medical expenses
Conveyance
allowance
134,173
14,402
0.13
0.01
860,264
0.85
84,800
0.08
e.
f.
Other allowance
Telegram &
telephone
358,252
153,517
0.35
0.15
9,588
0.01
g.
h.
Dress
Stationary purchase
& printing
21,291
0.02
42,134
0.04
129,268
0.13
52,734
0.05
225,385
186,926
14,114
1,790
42,452
0.22
0.18
0.01
0.00
0.04
121,920
3,250
0.12
0.00
15,786
0.02
250,070
253,765
190,669
0.25
0.25
0.19
r.
2.
a.
Books & newspapers

Publicity &
advertisement
Election expenses
Fair & entertainment
Audit fees
Court expenses
Electricity/water
expenses
Contingencies
Grant to
autonomous govt.
institutions
Members allowance
Tax Recovery
Pay & allowance
20,681
0.02
143,776
4,102
181,720
205,800
196,173
0.14
0.00
0.18
0.20
0.19
42,251
258,156
0.04
0.25
4,000
0.00
614,190
5,100,222
4,724,527
0.61
5.03
4.66
444,369
0.44
b.
Travel allowance
4,945
0.00
203,104
48,235
0.20
0.05
c.
d.
Medical allowance
Conveyance
allowance
Other allowance
80,468
10,755
0.08
0.01
2,564,002
2.53
e.
263,472
0.26
100,491
0.10
f.
g.
Dress
Stationary purchase
& printing
7,497
0.01
8,140,000
8.02
560
0.00
1,285,000
1.27
Contingencies
Public
Convenience &
Public Health
7,998
0.01
3,410,231
3.36
41,722,637
41.13
1.
i.
j.
k.
l.
m.
n.
o.
p.
q.
h.
3.
Expenditure Head
General
Administration
Pay & allowance
Travel allowance
Page 46
Rumi Aijaz
S.
No.
30
Income Head
Actual
Income
(in Rupees)
Percentage
to Total
Income
591,137
5,233,000
0.58
5.16
a.
(i)
Health:
Pay & allowance
1,738,249
22,000
42,000
1.71
0.02
0.04
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Travel allowance
Medical allowance
Conveyance
allowance
Other allowance
Dress
Medicines & phenyl
Contingencies &
sanitation expenses
Motor Garage:
Pay & allowance
Medical allowance
Other allowance
Dress
Petrol, diesel expense
Vehicle repairs
Sanitation vehicle
expenses General
administration
Sanitation vehicle
expenses
Sanitation/electricity
Public Safety
Pay & allowance
Travel allowance
Medical allowance
Other allowance
Dress
Petrol, diesel
expenses
Vehicle repairs
Contingencies
Electricity Branch
Pay & allowance
Medical allowance
Conveyance
allowance
Other allowance
Electricity bills
payment
Electrical item
purchase
Electricity
connection
maintenance
Contingencies
Animal House
Pay & allowance
Other allowance
Contingencies &
fodder
Park/Garden
32
33
34
SJSRY (urban
employment plan)
11th finance
commission
MLA quota
MP quota
National family plan
35
36
37
Deposits
Small advance
Building loan advance
1,918,628
192,727
252,601
1.89
0.19
0.25
38
39
40
Vehicle loan advance

Audit/other recovery
Opening balance
Total Income
140,347
12,528
9,457,751
101,435,282
0.14
0.01
9.32
100.00
31
S.
No.
b.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
4.
a.
b.
c.
d.
e.
f.
g.
h.
5.
a.
b.
c.
d.
e.
f.
g.
h.
6.
a.
b.
c.
7.
Expenditure Head
Actual
Expenditure
(in Rupees)
Percentage
to Total
Expenditure
38,844,893
29,043,213
38.30
28.63
898
455,946
18,050
0.00
0.45
0.02
1,930,676
213,168
3,899
1.90
0.21
0.00
7,179,043
2,877,744
2,055,071
27,974
114,126
9,126
386,873
135,938
7.08
2.84
2.03
0.03
0.11
0.01
0.38
0.13
123,739
0.12
24,897
3,759,045
3,197,761
13,175
62,356
182,480
25,584
112,119
0.02
3.71
3.15
0.01
0.06
0.18
0.03
0.11
134,195
31,375
5,859,842
179,337
1,200
2,900
0.13
0.03
5.78
0.18
0.00
0.00
8,986
4,822,717
0.01
4.75
238,968
0.24
598,890
0.59
6,844
905,072
802,128
67,260
35,684
0.01
0.89
0.79
0.07
0.04
90,132
0.09
Page 47
S.
No.
Income Head
Actual
Income
(in Rupees)
Percentage
to Total
Income
S.
No.
a.
b.
c.
8.
a.
b.
c.
d.
e.
f.
g.
9.
a.
b.
c.
10.
a.
b.
11.
a.
(i)
(ii)
(iii)
b.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
12.
a.
13.
a.
b.
c.
d.
e.
14.
Expenditure Head
Branch
Purchase of tools
Contingencies
Water/electricity bill
Public Repairs
Pay & allowance
Travel allowance
Medical allowance
Conveyance
allowance
Other allowance
Dress
Contingencies
Water Works
Water bill payment
P.S.P. expenses
Contingencies
Library
Water bill payment
Books/newspaper
Development
Works
Expenses from
municipal fund/
source:
New roads
construction
Other new
construction
Maintenance
expenses
Expenses from
grants received
SJSRY (urban
employment plan)
Slum dev.
Programme
MLA quota
MP quota
11th Finance
Commission
National social
assistance
Girl prosperity plan
Pension deductions
Purchase of New
Property
Water coolers
Miscellaneous
Deposits
Small advance
Building loan
Vehicle loan
Other small loans
Closing balance
Total Expenditure
Actual
Expenditure
(in Rupees)
Percentage
to Total
Expenditure
1,791
14,477
73,864
2,361,751
2,163,087
9,507
34,025
11,851
0.00
0.01
0.07
2.33
2.13
0.01
0.03
0.01
120,927
8,259
14,095
172,127
169,080
826
2,221
57,195
26,042
31,153
11,296,112
0.12
0.01
0.01
0.17
0.17
0.00
0.00
0.06
0.03
0.03
11.14
2,461,775
1,770,620
2.43
1.75
395,808
0.39
295,347
0.29
8,834,337
8.71
138,044
2,896,662
0.14
2.86
2,029,589
8,280
2.00
0.01
3,700,444
3.65
40,000
8,500
12,818
0.04
0.01
0.01
34,885
34,885
4,054,773
2,156,556
475,498
188,900
49,300
1,184,519
16,333,401
101,435,282
0.03
0.03
4.00
2.13
0.47
0.19
0.05
1.17
16.10
100.00
Page 48
Rumi Aijaz
During this period, the Council generated an income of Rs. 101.43 million. More than one-half
(57.28 per cent) of the income was received from the State government in the form of octroi
compensatory grant. The Council receives this grant after the abolishment of octroi in August
1998. Octroi is a tax on the entry of goods into a local area for consumption, use or sale therein
(Government of India, 1966: 91-92). Its abolishment is due to a major hindrance to the free flow
of traffic and trade. The other important sources of income are: State Finance Commission grant
(8.02 per cent); eleventh Finance Commission grant (5.16 per cent); building and land tax (5.06 per
cent); sale of land (3.36 per cent); and general grants (2.53 per cent). It is reported that income
from internal sources (i.e., tax and non-tax) is very low and the Council depends mainly on the
octroi compensatory grant and the general grants provided by the State government. The octroi
compensatory grant is estimated to be about Rs. 5.30 million per month. Of this amount, salaries
account for Rs. 4.20 million (or 80 per cent), Rs. 400,000 is spent on payment of road light bills,
Rs. 500,000 is given to contractors for sanitation works, Rs. 50,000 is spent on the maintenance of
road lights and the remaining amount is spent on other works, such as telephone and water bills,
etc. The taxes and non-taxes levied by the municipality are listed in Table 3.14. The Council
generated about 8 per cent of its income from taxes (5 per cent) and non-taxes (3 per cent).
The Council incurred an expenditure amounting to Rs. 101.43 million during the same period.
Thus, the income and expenditure pattern of the Council shows a balanced budget. The public
convenience and public health department shows a high expenditure (41.13 per cent). This is due
to the pay and allowance of health/sanitation staff. Similarly, the Council has spent about 11 per
cent of the expenditure on development works. Another observation is that nearly one-half (48.6
per cent) of the expenditure of the Council has been on pay and allowances of staff. The solid
waste management sector accounted for about 36 per cent of the expenditure.
development have been given attention: construction of new roads; slum improvement; and
sanitation.
Table 3.14: Taxes and Non-taxes Levied by Alwar Municipal Council, 2004-5
S.
No.
1
Taxes
Building &
land tax
Amount
(in
Rupees)
% to Total
Income
from
Taxes
5,128,969
100.00
S.
No.
Non-taxes
Slaughter house
fee
Amount
(in Rupees)
% to Total
Income
from Nontaxes
18,492
0.65
Page 49
S.
No.
Taxes
Total
income
from taxes
Amount
(in
Rupees)
% to Total
Income
from
Taxes
S.
No.
2
5,128,969
100.00
3
Per cent of
income from
taxes to total
income of
the Council
5.06
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Non-taxes
Amount
(in Rupees)
% to Total
Income
from Nontaxes
Building works
& construction
fee
Applications
6,720
0.24
26,054
0.92
Sign board
advertisement
860,264
30.41
84,800
3.00
9,588
0.34
42,134
1.49
52,734
186,926
14,114
1,790
42,452
121,920
3,250
15,786
1.86
6.61
0.50
0.06
1.50
4.31
0.11
0.56
250,070
253,765
8.84
8.97
190,669
6.74
444,369
203,104
15.71
7.18
2,829,001
100.00
Animal/other
fairs
Copying fee &
other certificates
Small flour
machine
Birth & death
certificates
Animal house
Food licence
Hotel byelaws
Road cutting
Tehbazari
Rent of vehicles
Rent of quarters
Income from
rent
Cycle stand
Dead animals
contract
Fish breeding
contract
Land licence fee
Total income
from non-taxes
Per cent of
income from
non-taxes to
total income of
the Council
2.79
The measures taken by the State government of Rajasthan and the local government are listed
below.
Enactment of the Rajasthan Municipalities (Second Amendment) Act, 1994 as a sequel to the
74th CAA. Accordingly, financial powers of Mayor and Chairperson have been enhanced;
committees have been constituted and their numbers increased for better representation of
Page 50
Rumi Aijaz
elected members; representation of ULBs in the District Planning Committees has been
granted.
Constitution of SFCs: After the expiry of the term of the first SFC, the second SFC has been
constituted and actions have been taken on its recommendations (Table 3.15 and 3.16).
Table 3.15: First SFC Recommendations and Actions Taken, Rajasthan

S. No.
6
7

2.18 per cent of net state tax proceeds to be transferred to
ULBs
Formulate an urban development policy to mitigate the
problems of urban poor & to strengthen urban infrastructure
Creation & strengthening of urban infrastructure facilities
deserve special attention; priority to be given to basic services,
namely water & sewer systems, energy, transport,
communications, environment, etc.
Need to review & simplify numerous rules framed under the
Municipal Act
Need for a separate study for designing a suitable
organisational structure for each class of municipality
considering their statutory functions
Need for redistribution & rationalisation of staff in ULBs
Urgent need to address the human resource problems of ULBs
Training facilities are inadequate & need to be strengthened
Need to optimally utilise the services of existing staff while

contracting out services like sanitation, street lighting, etc.
Existing surplus staff in under-worked departments to be used
in other departments where vacancies exist, after training
Services such as street lighting & road maintenance could be
privatised
There should be a combined effort between the ULBs & the
community to improve standards of sanitation
1
2
3
4
5
10
11
12
13
It is expedient to decentralise powers to ULBs for revising the

rates
14
Need to formulate detailed guidelines for assistance & grants

by the government to ensure more allocations to resource poor
ULBs at the lower levels
The department should demystify the house tax assessment
procedure by making it more simple and transparent
Discretionary tax resources are grossly under utilised; should
be tapped for generating more resources
State government and ULBs should examine the rates of fines,
penalties, charges, fees, etc., and revise them regularly
Transfer of additional functions to ULBs should be
accompanied by transfer of staff and funds to discharge those
functions effectively
Development of an effective MIS for maintaining data and
monitoring the performance of ULBs in consultation with the
Finance Department
Government of Rajasthan (2001: 176-84).
15
16
17
18
19
Source:

Accepted
Policy not yet formulated
Urban infrastructure is being strengthen
under various schemes, such as NRY,
UBSP, SJSRY, etc.
Rules are being simplified & amended
Under consideration
Under process
Training programmes are being
conducted to overcome such problems
Accepted but hampered due to scarcity
of funds
Instructions issued
Instructions issued
Accepted
NGOs in some colonies of Jaipur and
Kota cities are functioning to look into
this problem
Yet to be implemented; several
amendments in the Municipal Act are
envisaged in the near future
State Government has already ordered
to provide more general grant in aid to
poor and small ULBs
Under process
Under consideration
Under consideration
Accepted
Under process
Page 51
Table 3.16: Second SFC Recommendations and Actions Taken, Rajasthan

S. No.
1
3
4
5
6
7
8
9
Source:
Second SFC Recommendations

2.25 % of states net own tax revenue, excluding entertainment Accepted amount earmarked for LBs
tax, to be transferred to rural and urban local bodies; per cent is being distributed
share of rural and urban population would be 76.6 % and 23.4
% respectively
State Government should appoint the entire SFC at a time & To be further deliberated
should not change the composition till its tasks are complete;
Member Secretary should be appointed on full time basis; life
span of SFC should be for a maximum period of 18 months
State Government should ensure collection & compilation of Measures yet to be taken
financial data of LBs on a regular basis
Necessary arrangements for training of newly elected More than 10 training programmes have
representatives of LBs should be made
been conducted by RIPA
Keeping in view the increased requirements of cleaning, solid Such orders have been issued
waste disposal, etc., these services should be contracted out &
in emergent cases powers of hiring labour for cleaning
operations may be given to LBs
ULBs should recover house tax; State Government should Under process
expedite rationalisation of house tax provisions to make it
area-based
State Government should release grant in lieu of octroi to Grants are being released on time
ULBs on a regular basis
ULBs should recover discretionary taxes & fees so as to ULBs are being asked to do so
increase their revenue
Establishment expenditure in ULBs is higher than the norms. Efforts are being made to reduce
ULBs should rationalise the staff norms & computerise the establishment expenditure
office functions
Government of Rajasthan (2001: 115-18); Government of Rajasthan (2003).
Problems
supervision by sanitary staff; no waste disposal site;
Negligible attendance in training programmes; no significant impact of training.
Bharatpur (Rajasthan)
Bharatpur is situated in Bharatpur district in the State of Rajasthan. It is located at a distance of
about 180 kms. from Delhi, the national capital, which lies to its north, and 176 kms. from Jaipur,
which is another important town and the State capital, which lies to its south-west. A number of
places of tourist interest are located in and around the town, such as a Birds Sanctuary (named
Keoladeo Ghana National Park), Bharatpur Palace, Government Museum, several Temples,
Page 52
Rumi Aijaz
Lohagarh Fort, etc. The town has a total population of 204,587 (Census of India, 2001a). It is
divided into 45 municipal wards for administrative purposes. It is reported that there are about 11
slum pockets in the town.
The town is governed by a Municipal Council as per the provisions of the Rajasthan Municipalities
Act, 1959. The local government acquired its present civic status of a Municipal Council in
November 1973. It is reported that there has been an extension in the municipal limits in 1993.
Duties
The State government may, by order, entrust municipalities with such powers and functions as
institutions of self government and assign them 18 tasks listed in the Twelfth Schedule (see Box
2.2). In addition to this, the municipal Act of the State lists 23 obligatory and 25 discretionary
duties to be performed by local governments in the State (Table 3.10). It is reported that solid
waste management and maintenance of street lights are important functions looked after by the
municipality; water supply facilities are maintained by the State Public Health Engineering
Department (PHED); and roads are maintained by the municipality, the Urban Improvement
Trust (UIT) and the State Public Works Department (PWD). At present there is no underground
sewer facility in areas under the jurisdiction of the local government.
Composition
Bharatpur Municipal Council is represented by: (a) elected members, i.e., a President/Chairperson
and 45 Councillors; male and female councillors are 31 and 14 respectively; seats are reserved for
the scheduled castes and/or the scheduled tribes, women belonging to the scheduled castes
and/or the scheduled tribes, other women, and the backward classes; elections were held in the
year 2004; it has been reported that during 1974-1994, the local government in Bharatpur was
under the control of the Administrator and elections were not conducted during this period; (b)
ex-officio members with a right to vote in municipal meetings, i.e., a member of the Rajasthan
Legislative Assembly; and a member of the House of the People; (c) nominated persons having
special knowledge or experience in municipal administration; and (d) appointed staff, i.e., an
Executive Officer (known as a Commissioner in A class towns of Rajasthan), and other
employees. In this regard, it may be stated that information could be obtained only on the sanitary
Page 53
staff, which include a Health Officer, a Chief Sanitary Inspector, 9 Sanitary Inspectors for the 9
zones, 45 ward-level Supervisors, and 410 Sweepers. About 10 Sweepers have been involved in
sanitary works on a contractual basis.
Bharatpur Municipal Council is governed according to the provisions of the Rajasthan
Municipalities Act, 1959. Hence, provisions relating to the appointment of committees are the
same as described earlier in the case of Alwar.
Finance
The income and expenditure account of Bharatpur Municipal Council for the period 2004-5 is
Table 3.17: Income and Expenditure Pattern of Bharatpur Municipal Council, 2004-5
S.
No.
Income Head
Octroi compensatory
grant
Building & land tax
Construction fee
Sign board
advertisements
Copying fee
2
3
4
5
6
7
Actual
Income
(in 000 Rs.)
Percentage
to Total
Income
S.
No.
123,883
959
6
48.16
0.37
0.00
a.
b.
98
4
0.04
0.00
c.
d.
177
0.07
e.
10
7
2,899
0.00
0.00
1.13
f.
g.
h.
Expenditure Head
General
Administration
Pay
Travel allowance
Medical expenses
Telegram &
telephone
Dress
8
9
Misc. income
Birth & death
certificates
Food licence
Road cutting
10
11
12
Tehbazari
Parking contract
Income from rent
334
91
171
0.13
0.04
0.07
i.
j.
k.
13
Dead animals
contract
Other income
165
0.06
l.
0.00
m.
Agreements
Interest on
investment
Entertainment tax
General grants
Land lease premium
State finance
commission
247
0.10
67
88
1,947
647
n.
o.
Stationary
Books & newspapers
Publicity &
advertisement
Election expenses
Fair & entertainment
Court related
expenses
Electricity/water
expenses
Assistance to
institutions
Contingency
Vehicle maintenance
0.03
0.03
0.76
0.25
p.
2.
a.
Members allowance
Tax Recovery
Pay
6,217
2.42
b.
Medical expenses
14
15
16
17
18
19
20
Actual
Expenditure
(in 000 Rs.)
Percentage
to Total
Expenditure
11,326
7,925
62
4.40
3.08
0.02
45
0.02
120
19
0.05
0.01
136
7
0.05
0.00
395
77
237
0.15
0.03
0.09
263
0.10
165
0.06
699
299
292
0.27
0.12
0.11
585
1,228
1,205
0.23
0.48
0.47
21
0.01
Page 54
Rumi Aijaz
S.
No.
21
Income Head
11th finance
commission
Actual
Income
(in 000 Rs.)
Percentage
to Total
Income
23,637
9.19
22
Grant from DRDA
1,538
0.60
23
24
25
26
27
Social assistance
Grant from HUDCO
Deposits
Advance returns
Building loan
recovery
5
1,954
8,965
6,544
0.00
0.76
3.49
2.54
1,144
0.44
Vehicle loan recovery

Opening balance
Total Income
371
75,047
257,229
0.14
29.18
100.00
28
29
S.
No.
Expenditure Head
c.
Dress
3.
Public
Convenience &
Public Health
Pay
Medical expenses
Dress
Medicines & phenyl
Vehicle maintenance
a.
b.
c.
d.
e.
f.
4.
a.
b.
c.
d.
e.
5.
a.
b.
c.
d.
e.
f.
g.
6.
a.
b.
7.
a.
b.
c.
d.
8.
a.
b.
c.
d.
e.
9.
a.
(i)
(ii)
(iii)
Misc. expenses &

sanitation contract
Public Safety
Pay
Medical expenses
Dress
Vehicle maintenance
Misc. expenses
Electricity Branch
Pay
Medical expenses
Dress
Electricity bills
payment
Electrical item
purchase
Electricity
connection
maintenance
Miscellaneous
Animal House
Pay
Dress, etc.
Park/Garden
Branch
Pay
Medical expenses
Dress
Purchase of plants &
seeds
Public Repairs
Pay
Medical expenses
Building repairs
Dress
Miscellaneous
Development
Works
Expenses from
municipal fund/
source
New road works
Other new
construction/ kiosks
Public toilets &
urinals
Actual
Expenditure
(in 000 Rs.)
2
Percentage
to Total
Expenditure
0.00
36,290
14.11
33,797
11
146
1
1,275
13.14
0.00
0.06
0.00
0.50
1,060
4,471
4,164
39
16
246
6
8,388
749
3
3
0.41
1.74
1.62
0.02
0.01
0.10
0.00
3.26
0.29
0.00
0.00
3,996
1.55
2,807
1.09
817
13
549
545
4
0.32
0.01
0.21
0.21
0.00
1,819
1,800
5
11
0.71
0.70
0.00
0.00
3
2,278
2,172
23
15
4
64
0.00
0.89
0.84
0.01
0.01
0.00
0.02
73,631
28.63
44,532
13,233
17.31
5.15
2,316
0.90
502
0.20
Page 55
S.
No.
Income Head
Actual
Income
(in 000 Rs.)
Percentage
to Total
Income
S.
No.
Expenditure Head
(iv)
Construction of
drains
Maintenance
expenses
Improvement of
parks & tree
plantation
Expansion & shifting
of electricity lines
Cremation ground
Drain & road
connections
Sulabh complex
Town beautification
Expenses from
grants received
State finance
commission
11th finance
commission
Land lease premium
deposited in State
treasury
Purchase of New
Property
Purchase of diesel
for car
Wheel barrows
Small dustbins for
slums
Computer/AC/
printer
Miscellaneous
Deposits
Small advance
Building loan
Public well-being
works
Other works
Closing Balance
Total Expenditure
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
b.
(i)
(ii)
(iii)
10.
(i)
(ii)
(iii)
(iv)
11.
a.
b.
c.
d.
e.
12.
Actual
Expenditure
(in 000 Rs.)
Percentage
to Total
Expenditure
4,273
1.66
1,984
0.77
246
0.10
3,633
6
1.41
0.00
15,092
133
3,079
5.87
0.05
1.20
29,099
11.31
8,081
3.14
20,773
8.08
245
0.10
828
0.32
499
266
0.19
0.10
40
0.02
23
30,841
9,782
20,100
324
0.01
11.99
3.80
7.82
0.13
81
554
85,580
257,229
0.03
0.22
33.27
100.00
During this period, the Council generated an income of Rs. 257.22 million. Nearly one-half (48.16
per cent) of the income was received from the State government in the form of octroi
compensatory grant. The Council receives this grant after the abolishment of octroi in August
1998. The other important sources of income are: eleventh Finance Commission grant (9.19 per
cent) and State Finance Commission grant (2.42 per cent). It is reported that income from internal
sources (i.e., tax and non-tax) is very low and the Council depends mainly on the octroi
compensatory grant and other grants provided by the State government. The taxes and non-taxes
Page 56
Rumi Aijaz
levied by the municipality are listed in Table 3.18. The Council generated only about 2 per cent of
its income from taxes (0.41 per cent) and non-taxes (1.57 per cent).
Table 3.18: Taxes and Non-taxes Levied by Bharatpur Municipal Council, 2004-5
S. No.
1
2
Taxes
Amount
(in 000 Rs.)
% to
Total
Income
from
Taxes
959
91.60
88
8.40
1047
100.00
Building & land

tax
Entertainment
tax
Total income
from taxes
Per cent of
income from
taxes to total
income of the
Council
S. No.
Non-taxes
1
2
Construction fee
Sign board
advertisements
3
4
Amount
(in 000 Rs.)
% to Total
Income
from Nontaxes
0.15
98
2.43
Copying fee
Birth & death
certificate
0.10
10
0.25
Food licence
0.17
6
7
8
9
Road cutting
Tehbazari
Parking contract
Income from
rent
Dead animals
contract
Other income
Agreement
Total income
from non-taxes
2,899
334
91
71.78
8.27
2.25
171
4.23
165
7
247
4.09
0.17
6.12
4,039
100.00
0.41
10
11
12
Per cent of
income from
non-taxes to total
income of the
Council
1.57
Thus, the income and expenditure pattern of the Council shows a balanced budget. The Council
has spent about 30 per cent of the expenditure on development works. The public convenience
and public health department shows an expenditure of 14 per cent. The solid waste management
sector accounted for about 14 per cent of the expenditure.
development have been given attention: new road works, public toilets and urinals, construction of
Page 57
drains, improvement of parks and tree plantation, expansion and shifting of electricity lines, drain
and road connections and town beautification.
The measures taken by the State government of Rajasthan and the local government are listed
below.
Rajasthan Institute of Public Administration (RIPA) organises training programmes for

officials & elected representatives in the State.
For solid waste management (SWM), 9 zones have been demarcated in the town. A sanitary
inspector looks after each zone.
Rules have been passed by State government for door-to-door collection of solid waste.
Although the local government has taken the initiative, little cooperation is received from the
citizens.
Contract for SWM has been given for one year. Contractor provides tractors, drivers and
labour for lifting waste containers from different parts of the town and for disposal at the
dumping ground, which is located near Noah Village on Agra Road. Each container has a
capacity of about 2 tons of waste, and one tractor transports about 8 containers daily.
Another contract for street sweeping has been given in which 4-6 people have been involved.
Special sanitary drives are conducted 3-4 times in a year.
Problems
Shortage of staff: one section/branch looks after other sections; government is not filling
vacant posts; In the Light Section, there is only one Junior Engineer, who also looks after
electricity requirements of a small town named Karauli situated in the vicinity; there is no
house tax assessor at present;
Computers have been provided in 2001-2, however, municipal employees do not know how to
use them; no training is offered;
supervision by sanitary staff; no disposal site;
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Mussoorie (Uttaranchal)
Mussoorie is situated in Dehradun district in the hill State of Uttaranchal. It is located at a distance
of about 290 kms. from Delhi, the national capital, which lies to its south-west, and 35 kms. from
Dehradun, which is another important town and the State capital, which lies to its south.
Mussoorie often described as the queen of hills is one of the most popular hill station in
northern India, popular for its inherent scenic beauty. There are several places of tourist interest
located in and around the town, such as the Nag Devta Temple, Mussoorie Lake, Happy Valley
(Tibetan Township), Gun Hill, Municipal Gardens and Park, Camels Back Road, Landour Bazar,
Lal Tibba, Kempti Falls, etc. Mussoorie is also an important educational centre, which has
experienced a growth in the number of schools. The town has a total population of 26,075 and an
area of 64.75 sq. kms. (Census of India, 2001a and b). It is divided into 11 municipal wards for
administrative purposes.
The town is governed by a Municipal Council as per the provisions of the United Provinces
Municipalities Act, 1916. Furthermore, the Council also relies on the Rules, Regulations and Byelaws of the Mussoorie Municipality published by the order of the City Board, Mussoorie in March
1957 and amended from time to time.
The present legal basis of ULBs in the State has emerged from the conformity legislation, i.e., the
UP Urban Local Self Government Laws (Amendment) Act, 1994 (Act 12 of 1994; and an
amendment thereto by Act 26 of 1995), consequent to the 74th CAA of 1992.
Duties
The municipal Act of the State lists 36 obligatory and 22 discretionary duties to be performed by
local governments in the State (Table 3.19). It is reported that water supply and sewerage services
are provided by the State-level Garhwal Jal Sansthan (State-level Water Supply Agency).
Page 59
Table 3.19: Obligatory and Discretionary Duties of Municipalities in Uttaranchal

S. No.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
B
1
2
3
Duties
Obligatory/Primary
Lighting public street & places
Watering public streets & places
Making a survey, and erection of boundary marks, of the municipality
Cleaning public streets, places & drains, removing noxious vegetation, & abating all public nuisances
Regulating offensive, dangerous or obnoxious trades, callings or practices
Confinement, removal or destruction of stray dogs & dangerous animals
Removing, on the ground of public safety, health or convenience, undesirable obstructions & projection
in streets or public places
Securing or removing dangerous buildings or places
Acquiring, maintaining, changing, & regulating places for the disposal of the dead & making arrangements
for disposal of unclaimed dead bodies after ascertaining from the police in writing that there is no
objection to do so
Constructing, altering & maintaining public streets, culverts, markets, slaughter-houses, latrines, privies,
urinals, drains, drainage works & sewerage works
Reclaiming unhealthy localities
Planting & maintaining trees on road sides & other public places
Providing water supply for domestic, industrial & commercial purposes
Providing a sufficient supply of pure & wholesome water where the health of the inhabitants is
endangered by the insufficiency or unwholesomeness of the existing supply, guarding from pollution
water use for human consumption & preventing polluted water from being so used
Maintaining in addition to any other source of water supply, public wells, if any, in working condition,
guarding from pollution their water & keeping it fit for human consumption
Registering births & deaths
Establishing & maintaining a system of public vaccination
Establishing, maintaining or supporting public hospitals & dispensaries, & providing public medical relief
Establishing, maintaining & assisting maternity centres & child welfare & birth control clinics &
promoting population control, family welfare & small family norms
Maintaining or contributing to the maintenance of veterinary hospitals
Establishing & maintaining or guaranteeing aid to institutions of physical culture
Establishing & maintaining primary schools
Rendering assistance in extinguishing fires & protecting life & property when fires occur
Protecting, maintaining & developing the property vested in, or entrusted to the management of the
municipality
Maintaining the finances of the municipality in satisfactory condition & meeting its liabilities
Prompt attention to official letters & preparation of such returns, statements & reports as the State
Government requires the municipality to submit; and
Fulfilling any obligation imposed by law upon it
Regulating tanneries
Construction & maintenance of parking lots, bus stops & public conveniences
Promoting urban forestry & ecological aspects & protection of the environment
Safeguarding the interests of weaker sections of society including the handicapped & mentally retarded
Promoting cultural, educational & aesthetic aspects
Constructing & maintaining cattle pounds and preventing cruelty to animals
Slum improvement & upgradation
Urban poverty alleviation
Providing urban amenities & facilities such as gardens, public parks & play grounds
Discretionary/Secondary
Laying out, in areas whether previously built upon or not, new public streets & acquiring land for that
purpose & for the construction of buildings, & their compounds, to abut on such streets
Preparing & executing Master Plan
Constructing, establishing, maintaining or contributing to the maintenance of libraries, museums, reading
rooms, radio receiving stations, lepers homes, orphanages, baby-folds & rescue homes for women, lunatic
asylums, halls, offices, dharamshalas, rest-houses, encamping grounds, poor-houses, dairies, baths, bathing
ghats, washing places, drinking fountains, tanks, wells, dams & other works of public utility
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Rumi Aijaz
S. No.
4
Duties
Furthering educational objects by measures other than the establishment & maintenance of primary
schools
5
Taking a census, & granting rewards for information which may tend to secure the correct registration of
vital statistics
6
Granting rewards for information leading to the detection of evasion of tax imposed under this Act, or
the detection of causing injury to or encroachment on property vested in or entrusted to the management
& control of the municipality
7
Giving relief on the occurrence of local calamities, by the establishment & maintenance of relief works or
otherwise
8
Securing or assisting to secure suitable places for the carrying on of any trade
9
Establishing & maintaining a farm or factory for the disposal of sewage
10
Making arrangements for preparation of compost manure from night-soil & rubbish
11
Constructing, subsidizing or guaranteeing tramways, railroads or other means of locomotion & electric or
gas lighting or electric or gas power works
12
Promoting tourist traffic
13
Holding fairs & exhibitions
14
Preparing & executing House & Town Planning Schemes
15
Taking measures to promote trade & industry
16
Supply of milk
17
Establishing Labour Welfare Centres for its employees & subsidizing the activities of any association,
union or club of such employees by grant or loan, for its general advancement
18
Organising or contributing to municipality Unions
19
Adopting any measure likely to promote the public safety, health, or convenience
20
Removing social disabilities of scheduled castes & backward classes in such manner as may be prescribed
21
Taking measures for the control of beggary
22
The doing of anything whereon expenditure is declared by the State Government or by the municipality
with the sanction of the Prescribed Authority to be an appropriate charge on the municipal fund
Source: United Provinces Municipalities Act, 1916 (2004: 9-13).
In addition, rules, regulations and byelaws have been framed to further clarify the responsibilities
of specific Councils. For the town of Mussoorie, about 55 byelaws exist, which pertain to
regulation of traffic, registration of births and deaths, regulation of sale of meat or fish, controlling
the manufacture and sale of aerated water, regulation and control of bakeries, regulation and
inspection of slaughter house, etc. Furthermore, rules and regulations have been framed for
various municipal practices (such as assessment and collection of taxes and non-taxes levied by the
Council, conduct of business, establishment and duties of committees, etc.).
Composition
Mussoorie Municipal Council is represented by: (a) elected members, i.e., a President/Chairperson
and 11 Councillors; male and female councillors are 7 and 4 respectively; seats are reserved for the
(b) ex-officio members, comprising all members of the State Legislative Assembly and the House
of the People; (c) ex-officio members, comprising all members of the Council of States and the
State Legislative Council; (d) nominated persons having special knowledge or experience in
Page 61
municipal administration; and (e) appointed staff, i.e., an Executive Officer and other employees,
such as an Office Superintendent, Accountant, Medical Officer of Health, Sanitary Inspectors, Tax
Superintendent, Tax Inspectors, Clerical Staff, etc.
Sub-committees/Committees
The Rules, Regulations and Bye-laws of the Mussoorie Municipality provides for the appointment
of the following five sub-committees:
Public Health Committee
Public Works Committee
Tax Assessment Committee
Finance Committee
Garden Committee
The duties of each sub-committee are listed in Table 3.20. Each sub-committee comprises five
members who are elected on the basis of voting among the councillors. One member in each subcommittee is the Chairperson. The local Act also provides that any member may represent one or
more sub-committees. At the time of field survey, it was learnt that the term of sub-committees
was over and new sub-committees were yet to be constituted.
Table 3.20: Duties of Sub-committees in Municipal Councils of Uttaranchal

S. No.
1
Name of Sub-committee
Public Health
Duties
To see that all rules & orders relating to conservancy are observed, &
that the servants employed by the Council for the purposes of
conservancy discharge their duties regularly & satisfactorily
To report from time to time upon the sufficiency (or the excess) of the
conservancy staff, & to see that sanctioned establishment is not
exceeded without special orders
To advise the Committee of Finance as to the quantity & description of
stores required for the due carrying out of the operations of the
conservancy department
To inspect & report on the state of: slaughter houses, latrines,
conservancy carts & apparatus, springs
To see that the stock books & the registers of medicines, laboratory,
etc., are kept up-to-date and the stock of medicines & appliances,
property of the Public Health Department including the Hospitals are
periodically verified
To inspect anything else connected with Public Health Department and
Hospitals not mentioned above
To supervise & check the registration of the birth & death statistics
To supervise, subject to the direction of the Superintendent of
Vaccination, the working of the Vaccination Act, and to check the
returns and work of the Vaccinators
To advise the Council generally on all matters connected with the
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S. No.
Public Works
Tax Assessment
Finance
Garden
Duties
sanitation, conservancy and public health
To receive reports from the Sanitary Inspectors and Health Officer and
pass orders on the same
To call for estimates for public works from the Engineer, Overseer, or
the Public Works Superintendent and to examine them & to make
recommendations as to the order in which such works should be
carried out
To see that the measurement books are properly maintained, & to
report generally on works going on and work done
To examine & check the completion certificates for public works
To examine bills
To allot such funds as may from time to time be placed at its disposal
for such works as have been approved by the Council
To call for tenders for contracts for the execution of all public works
which are to be given out on contract, & to advise as to the security to
be taken on the acceptance of a tender
To maintain a schedule of rates & to periodically revise it
To see that detailed plans & estimates for every work are prepared &
previously sanctioned by the proper authority
To see that works sanctioned are started & executed according to the
detailed plans & estimates, & where they are given out on contract
according to the conditions of the deed of contract & to advise as to
the penalty to be exacted from the contractor for any breach of these
conditions
To see that the stock-books & the registers of tools & plants, etc., are
kept up-to-date & that the stock & property of the Public Works
Department are periodically verified
To satisfy itself that the watering & lighting arrangements are efficiently
carried out
To advise the Council generally in all matters connected with public
works
To prepare assessment list
To decide the objections received in connection with assessment list
To periodically visit & inspect the various barriers
To see that copies of the toll schedules of current rates are duly
exhibited at the various barriers & at the municipal office
To see generally that the collecting staff are duly observing the rules in
the Municipal Account Code regarding the collection & assessment of
tolls & taxes
To see that the arrangements to prevent smuggling or evasion of
payment of tolls & taxes are sufficient
To see that the refund rules are carefully worked & that every possible
facility is provided for the claiming & the payments of refunds
To inspect the work of the toll supervisors & tax collectors & to see
that the statements of accounts are regularly & correctly prepared
To dispose of all matters concerning tolls & taxes
To prepare the annual estimates of income & expenditure
To allot funds within the sanctioned budget estimates for expenditure
under the various heads
To satisfy itself that no expenditure has been or is being, incurred
except under proper sanction & in accordance with the budget
estimates & allotments
To examine the monthly accounts before presentation to the Council
To see that the provisions relating to contracts are duly carried out
To advise the Council generally on all matters connected with finance
To look after & supervise the staff & the maintenance of the municipal
gardens, open spaces & playgrounds under the control of the Council,
to preserve & protect the forests generally, & to dispose of all matters
relating to the above
Page 63
S. No.
Duties
To encourage plantation of Deodar, Pine, Fruit, Ornamental &
Flowering trees & any other useful trees, establishment of nurseries,
planting of orchards, agriculture & vegetable growing & to discourage
the indiscriminate cutting of the trees
To take such steps as it deems necessary to encourage house-owners to
beautify their grounds along the public roads
All applications for felling trees shall come before the Garden
Committee who will be empowered to sanction the felling of trees up
to 100 in number
To invite the attention of the President of the Council on all matters
concerning the hunting, shooting & preservation of wild animals &
birds within the municipal limits & forests
Source: Rules, Regulations and Bye-Laws of the Mussoorie Municipality, 1957: 58-63.
Finance
As per the United Provinces Municipalities Act, 1916, a Municipality may impose in whole or part
various taxes (Table 3.21).
Table 3.21: Taxes which may be imposed as per the Municipal Act
S. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Source:
Note:
Tax on the annual value of building or lands or of both
Tax on trades & callings carried on within the municipal limits & deriving special advantages from, or
imposing special burdens on municipal services
Tax on trades, callings & vocations including all employments remunerated by salary or fees
Theatre tax which means a tax on amusement or entertainments
Tax on vehicles & other conveyances plying for hire or kept within the municipality or on boats moored
therein
Tax on dogs kept within the municipality
Tax on animals used for riding, driving, draught or burden, when kept within the municipality
Tax on inhabitants assessed according to their circumstances & property
Water tax on the annual value of buildings or lands or of both
Drainage tax on the annual value of buildings leviable on such buildings as are situated within a distance,
to be fixed by rule in this behalf for each municipality form the nearest sewer line
Scavenging tax
Conservancy tax for the collection, removal and disposal of excrementious & polluted matter from
privies, urinals, cesspools
Tax on deeds of transfer of a immovable property situated within the limits of the Municipality
United Provinces Municipalities Act, 1916 (2004:78-9).
Provided that taxes mentioned against serial number 3 and 8 shall not be levied at the same time; nor shall
the taxes mentioned against serial number 10 and 12 be levied at the same time.
The income and expenditure account of Mussoorie Municipal Council for the period 2004-5 is
During this period, the Council generated an income of Rs. 45.29 million. More than one-half
(56.41 per cent) of the income was received from the following sources: SFC grant (25.18 per
cent); house tax (17.52 per cent); rent of land, buildings, parking, etc. (8.48 per cent); and
scavenging (conservancy) tax (5.23 per cent). The taxes and non-taxes levied by the municipality
Page 64
Rumi Aijaz
are listed in Table 3.23. The Council generated about one-third (32.04 per cent) of its income from
taxes (23 per cent) and non-taxes (9 per cent).
Available data on demand and recovery from various taxes and non-taxes (namely house tax,
conservancy tax, show tax, rent, fees, etc.) show that the Council recorded a recovery of 62 per
cent during 2004-5. It is reported that recovery is low because people do not cooperate due to
deficiencies in the procedure adopted by the Council for assessing the ARV.
Thus, the income and expenditure pattern of the Council shows a balanced budget. The public
health and convenience department shows a high expenditure (30 per cent). This is due to the pay
and allowance of health/sanitation staff. Similarly, the Council has spent about 27 per cent of the
expenditure on development works, especially road construction and repairs and repair of ropeway
trolley. The solid waste management sector accounted for about 26 per cent of the total
expenditure of the Council.
development have been given attention: lighting, drains development and repairs, tree plantations
and public gardens, road construction and repairs, etc.
Discussions held with some municipal employees on Councils finances revealed the following:
During the last year (2004-5), the Council earned Rs. 4-5 million from road barrier on mall
road (Rs. 100 for one trip); Rs. 5.2 million from ropeway trolley;
Rs. 20,000 to 25,000 is spent on inspection of ropeway trolley at Gun Hill;
Salaries account for a high proportion of Municipal income and the Council does not have
adequate funds left for carrying out development works
Table 3.22: Income and Expenditure Pattern of Mussoorie Municipal Council, 2004-5
S.
No.
Income Head
Actual Income
(in Rupees)
8,269,730
Percentage
to Total
Income
18.26
S.
No.
Expenditure Head
1.
General
administration & tax
recovery
General office
administration &
establishment
Tax recovery
Opening
balance
Tax & tax

assessment
a.
Tax on houses
& land
b.
7,934,003
Actual
Expenditure
(in Rupees)
Percentage to
Total
Expenditure
5,890,594
13.01
3,327,517
628,811
7.35
1.39
17.52
Page 65
S.
No.
Income Head
Actual Income
(in Rupees)
3
4
Rickshaw tax
Tax on use of
vehicles
Scavenging
(Conservancy)
tax
1,953
Percentage
to Total
Income
0.00
1,182
0.00
2,369,946
5.23
3,625
0.01
Slaughter tax
S.
No.
c.
2.
Toll tax recovery

Public safety
a.
Lighting
3.
Public health &

convenience
Drains development
& repairs
a.
7
B
8
9
10
11
Show tax
Income from
municipal
properties &
other sources
Rent of land,
buildings,
parking, etc.
Slaughter
house fee
Copying &
registration fee
Fee on
registration of
dogs
12
13
Licence fee
Miscellaneous
14
Interest on
capital
(general)
Assistance &
grants
State Finance
Commission
11th Finance
Commission
MLA fund
MP fund
Miscellaneous
Fine as per
Municipal Act,
etc.
Income from
other sources
Income from
bail
C
15
16
17
18
D
19
20
21
22
1,000
Expenditure Head
0.00
Actual
Expenditure
(in Rupees)
1,934,266
874,986
Percentage to
Total
Expenditure
4.27
1.93
874,986
1.93
13,444,840
29.68
80,103
0.18
b.
Sanitary workers
10,413,293
22.99
c.
Fixed equipment
972,007
2.15
d.
Health officer &

sanitary inspectors
282,345
0.62
3,842,515
8.48
25,565
0.06
121,728
0.27
e.
Hospital & dispensary
982,408
2.17
10
0.00
f.
Slaughter house
150,550
0.33
g.
207,086
34,025
0.46
0.08
4.
Tree plantation &

public gardens
Public Development
564,134
12,217,648
1.25
26.98
a.
Establishment
2,132,414
224,102
0.49
4.71
b.
Building construction
298,775
0.66
c.
4,391,719
9.70
5.
a.
6.
Ropeway trolley
repairs
Road construction &
repairs
Education
Schools & colleges
Miscellaneous
5,394,740
1,037,581
1,037,581
4,110,764
11.91
2.29
2.29
9.08
24,300
0.05
218,638
0.48
816,881
1.80
3,050,945
6.74
3,109,531
4,606,446
45,292,390
6.87
10.17
100.00
11,404,000
25.18
d.
1,371,078
151,000
19,905
3.03
0.33
0.04
38,335
0.08
a.
Printing
4,561,756
10.07
b.
c.
103,400
0.23
Legal matters
Subsistence
fund/pension
Revolving fund
4,606,446
10.17
Total Income
45,292,390
100.00
d.
7.
8.
Miscellaneous
Actual balance
(general)
Revolving fund
Total Expenditure
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Rumi Aijaz
Table 3.23: Taxes and Non-taxes Levied by Mussoorie Municipal Council, 2004-5
S. No.
Taxes
Tax on houses
& land
Amount
(in
Rupees)
% to
Total
Income
from
Taxes
7,934,003
76.94
S. No.
Non-taxes
Rent of land,
buildings,
parking, etc.
Slaughter
house fee
Copying &
registration
fee
Fee on
registration
of dogs
Licence fee
Total
income
from nontaxes
2
2
Rickshaw tax
Tax on use of
vehicles
Scavenging
(conservancy)
tax
Slaughter tax
Show tax
Total income
from taxes
1,953
0.02
3
1,182
0.01
4
2,369,946
3,625
22.98
0.04
1,000
0.01
10,311,709
100.00
Per cent of
income from
taxes to total
income of the
Council
22.77
Amount
(in Rupees)
% to Total
Income
from Nontaxes
3,842,515
91.56
25,565
0.61
121,728
2.90
10
207,086
0.00
4.93
4,196,904
100.00
Per cent of
income from
non-taxes to
total income
of the
Council
9.27
The measures taken by the State government of Uttaranchal and the local government are listed
below.
Enactment of UP Urban Local Self Government Laws (Amendment) Act, 1994.
Constitution of SFC. The recommendations of first SFC and actions taken are listed in Table
3.24.
Rates of various taxes/non-taxes have been revised (namely, house tax, photographer licence,
slaughter house rates, hotel lodging licence, copying fees, etc.).
Yearly assessment of properties is done; ARV has been revised by nearly 50 per cent.
Mall road permit has been increased from Rs. 50 to Rs. 100.
The Uttaranchal Academy of Administration (UAA) organises training programmes for

officials and elected representatives in the State; programmes are conducted on diverse
Page 67
themes, such as solid waste management, management training, double entry bookkeeping,
computerisation, etc.
There is a ban on the use of polythene bags; 70-80 per cent of shopkeepers do not keep these
bags.
There is an emphasis on segregation and recycling of solid waste.
Table 3.24: First SFC Recommendations and Actions Taken, Uttaranchal

S. No.
1
2
3
4
5
6
7
8
Source:

Devolutions to ULBs to be made in rounded per capita terms,
i.e., Municipal Corporations Rs. 250 per capita; Municipal
Councils Rs. 250-300 per capita; and Nagar Panchayats Rs.
172-225 per capita
Initially in a year only 70 % of the entitlement should be
released & the release of remaining 30 % be linked to their
financial & institutional performance
Commission discourages financial disorder or laxity in respect
of property tax administration; it would be appropriate for the
State Government to examine the entire property tax regime &
reform it
It would be up to the State Government to undertake an
exercise to evolve a proper set of norms for the sanction of
posts in LBs
State Government should arrive at norms for staffing and to
determine numbers & names
With a view to ensuring transparency & accountability, the
Commission recommends that the State Government should
open three detailed heads, namely statutory transfers, specific
purpose grants & other grants of discretionary nature. This
would provide the State Government a clear & stable financial
picture of the nature of transfers to LBs, & also help them in
monitoring their utilisation
Effort should be made to adopt the new budget format
prepared by the Uttar Pradesh SFC
An effective institutional mechanism should be devised by the
State Government in order to implement the SFC
recommendations; this may involve two steps setting up of a
performance monitoring mechanism; and guidance, training &
capacity building of municipal officials, both elected &
appointed
Government of Uttaranchal (2002; 2004).

Accepted
Accepted
Accepted
Accepted Administrative department

will take up this task
Accepted Administrative department
will take up this task
Accepted
Accepted
Accepted
Problems
Floating population should be considered as a basis for the devolution of funds from the State
government to the local bodies;
Page 68
Rumi Aijaz
Nainital (Uttaranchal)
Nainital is situated in Nainital district in the hill State of Uttaranchal. It is located at a distance of
about 330 kms. from Delhi, the national capital, which lies to its south-west, and 68 kms. from
Almora, which is another important town in the State, which lies to its north.
Nainital is named after the Naini Lake, which occupies a central location. The lake is surrounded
by seven hills. Most buildings are constructed on the hill slopes facing the southern, eastern,
northern and north-western sides of the lake. There are three popular localities in the town
Tallital (on the southern side of the lake), Mallital (on the north and western side of the lake) and
Sukhatal (on the west of Mallital). Because of its scenic character, Nainital is a popular hill resort
for both domestic and international tourists. The major tourists spots in and around the town are
Naina Peak (2610 mtrs.), Snow View (2270 mtrs.), Tiffin Top (2292 mtrs.), Lands End (2118
mtrs.), Dorothys Seat (2292 mtrs.), High Altitude Zoo (2075 mtrs.), State Observatory (1951
mtrs.), etc. Tourists also visit Nainital due to the presence of several places of worship in the town
(such as the Naina Devi Temple, Pasan Devi Temple, Hanumangarhi Temple, Birla Vidya Temple,
Jama Masjid, Roman Catholic Church, etc.) and a group of lakes (namely Sat-Tal, Bhimtal,
Naukuchiyatal, etc.) located at a distance of about 20-30 kms. south-east of Nainital. Besides being
a popular tourist resort, Nainital is an important centre of education for the local and regional
population.
The town has a total population of 38,630 and an area of 11.73 sq. kms. (Census of India, 2001a
and b). It is divided into 11 municipal wards for administrative purposes.
The town is governed by a Municipal Council as per the provisions of the United Provinces
Municipalities Act, 1916. Furthermore, the Council also relies on the Bye-laws, Rules, Regulations
of the Nainital Municipality published by the order of the Municipal Board, Nainital in August
1966 and amended from time to time. Regarding the evolution of the local government, it is
reported that a Town Area Committee was constituted for the first time in 1845. Its status was
changed to Municipal Board in 1850 and Municipal Council in 1988.
Page 69
Duties
As mentioned earlier in the case of Mussoorie, the municipal Act of the State lists 36 obligatory
and 22 discretionary duties to be performed by local governments in the State (see Table 3.19). In
addition, byelaws, rules and regulations have been framed to further clarify the responsibilities of
specific Councils. For the town of Nainital, byelaws exist for municipal property and roads,
buildings, public safety and convenience, public health, regulating sale of articles, licences; notices
are specified for various practices (such as disposal of rubbish, etc.); rules have been formulated
for various activities (such as municipal markets, collection of tax, forest produce, etc.), and
regulations are provided for the conduct of municipal administration (such as grant of leave, time
and manner of convening meetings, conduct of proceedings, establishment, duties and powers of
committees, etc.).
It is reported that a number of functions earlier in possession of the Council have been transferred
to the State departments due to the inability of the local government to perform these functions.
Composition
Nainital Municipal Council is represented by: (a) elected members, i.e., a President/Chairperson
and 11 Councillors; male and female councillors are 7 and 4 respectively; seats are reserved for the
(b) ex-officio members, comprising all members of the State Legislative Assembly and the House
of the People; (c) ex-officio members, comprising all members of the Council of States and the
State Legislative Council; (d) nominated persons having special knowledge or experience in
municipal administration; and (e) appointed staff, i.e., an Executive Officer and other employees,
such as a Municipal Engineer, a Junior Engineer, a Chief Sanitary Inspector, two Sanitary
Inspectors, a Tax Superintendent, two Tax Inspectors, an Accountant, an Office Superintendent,
two Sectional Head Clerks, 241 Sanitary Workers, etc.
Sub-committees/Committees
The Byelaws, Rules and Regulations of the Nainital Municipality provides for the appointment of
the following eight sub-committees:
Finance, Toll and Taxes
Public Works
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Assessment
Public Health
Education
Market
Library
Flats (A place with a flat area adjoining the lake, which is also the venue of various cultural
programmes organised by the local government)
Each sub-committee comprises five to nine members who are elected on the basis of voting
among the councillors. One member in each sub-committee is the Chairperson. The local Act also
provides that any member may represent one or more sub-committees.
Finance
The income and expenditure account of Nainital Municipal Council for the period 2004-5 is
Table 3.25: Income and Expenditure Pattern of Nainital Municipal Council, 2004-5
S.
No.
Income Head
Opening balance
11
Municipal Rates &

Taxes
Tax on buildings
Tax on boats
Tax on horses
Conservancy
(sanitation) tax
Lake frontage
Show tax
Revenue derived
from Municipal
Property apart from
Taxation
Rent
Nazul rent
Fee from educational
institutions (nursery
schools)
Slaughter house fee
12
13
14
2
3
4
5
6
7
B
8
9
10
Revised
Income
(in Rupees)
5,026,531
Percentage
to Total
Income
8.78
S.
No.
1
Expenditure Head
Revised
Expenditure
(in Rupees)
Percentage
to Total
Expenditure
General
administration
3,000,000
5.24
5,500,000
10,000
2,000
9.61
0.02
0.00
2
3
4
5
Tax department
Toll department
Snow view binocular
Cremation ground
800,000
1,500,000
50,000
50,000
1.40
2.62
0.09
0.09
5,500,000
2,000
60,000
9.61
0.00
0.10
6
7
8
Traffic management
Lake/drain cleaning
Electrification
650,000
500,000
600,000
1.14
0.87
1.05
Street lighting
500,000
0.87
10
11
Wood for cremation

Conservancy dept.
150,000
16,500,000
0.26
28.82
12
Waste clearing
vehicles
Conservancy dept.
store
Sanitary equipment
Conservancy dept.
staff
Sulabh shauchalaya
600,000
1.05
200,000
1,800,000
0.35
3.14
300,000
500,000
0.52
0.87
3,000,000
3,000
5.24
0.01
30,000
60,000
0.05
0.10
13
Projection fee
Copying fee
25,000
40,000
0.04
0.07
14
15
Library fee
10,000
0.02
16
Page 71
S.
No.
15
16
17
18
19
C
20
Income Head
Fisheries licence
Licence
(miscellaneous)
Revised
Income
(in Rupees)
1,000
Percentage
to Total
Income
0.00
S.
No.
17
Health centre
400,000
0.70
18
19
Infectious diseases
Markets & slaughter
houses
Food item samples
Municipal gardens
Water samples
Public works dept.
staff
Municipal buildings
Municipal roads
Public works dept.
store
Schools
Municipal library
General fund
Interest on bank
loans
5,000
80,000
5,000,000
0.01
0.14
8.73
21
22
Licence for dogs

Other fee, fine
Motor vehicle fee
Miscellaneous
Interest on
investment
SFC grant
Library grant
55,000
12,000,000
1,000
0.10
20.96
0.00
23
24
25
26
27
Flood relief grant

Sulabh shauchalaya
MP/MLA fund
Beautification
Development fee
500,000
500,000
500,000
400,000
1,000,000
0.87
0.87
0.87
0.70
1.75
28
31
32
33
Sewer & drinking

water facility
Lake/drain
development
11th finance
commission
2 % stamp duty
Snow view binocular
Miscellaneous
34
35
Loan from banks

Premium
36
Deposits
Total Income
29
30
3,200,000
5.59
500,000
0.87
1,000,000
2,000,000
20,000
1,700,000
1.75
3.49
0.03
2.97
9,000,000
100,000
15.72
0.17
25,000
57,255,531
0.04
100.00
20
21
22
23
24
25
26
27
28
29
30
Expenditure Head
31
32
Printing charges
Law charges
33
Provident fund
34
35
36
37
Govt. share of nazul

Travel allowance
Fairs
Miscellaneous
expenses
Pension fund
Repayment of bank
loan
Deposits
Balance
Total expenditure
38
39
40
41
Revised
Expenditure
(in Rupees)
170,000
Percentage
to Total
Expenditure
0.30
25,000
0.04
60,000
5,000
500,000
200
0.10
0.01
0.87
0.00
4,000,000
1,400,000
2,500,000
6.99
2.45
4.37
150,000
1,100,000
50,000
50,000
0.26
1.92
0.09
0.09
400,000
0.70
300,000
250,000
0.52
0.44
5,250,000
9.17
3,000
100,000
100,000
0.01
0.17
0.17
600,000
3,250,000
1.05
5.68
9,000,000
10,000
282,331
57,255,531
15.72
0.02
0.49
100.00
During this period, the Council generated an income of Rs. 57.26 million. The main contribution
to this income has come from external sources grant and loan which account for about onehalf of the total income. The taxes and non-taxes levied by the municipality are listed in Table
3.26. The Council generated more than a third (37.98 per cent) of its income from taxes (19 per
cent) and non-taxes (19 per cent).
Available data on demand and recovery from various taxes and non-taxes (namely conservancy
tax, building tax and rent) show that the Council recorded a recovery of 40 per cent during 2004-5.
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Table 3.26: Taxes and Non-taxes Levied by Nainital Municipal Council, 2004-5
S. No.
Taxes
Tax on
buildings
Amount
(Revised)
(in Rupees)
% to
Total
Income
from
Taxes
5,500,000
49.67
Rent
2
3
Nazul rent
Fee from
educational
institutions
Tax on boats
10,000
0.09
Tax on horses
2,000
0.02
Conservancy
(sanitation) tax
5
6
Lake frontage
Show tax
Total income
from taxes
S. No.
Non-taxes
Amount
(Revised)
(in Rupees)
% to Total
Income
from Nontaxes
3,000,000
28.11
3,000
0.03
30,000
0.28
60,000
25,000
40,000
0.56
0.23
0.37
5,500,000
49.67
2,000
60,000
0.02
0.54
5
6
Slaughter house
fee
Projection fee
Copying fee
11,074,000
100.00
7
8
Library fee
Fisheries licence
10,000
1,000
0.09
0.01
Licence
(miscellaneous)
400,000
3.75
10
11
12
13
14
Licence for dogs

Other fee, fine
Motor vehicle fee
2 % stamp duty
Snow view
binocular
Total income
from non-taxes
5,000
80,000
5,000,000
2,000,000
0.05
0.75
46.84
18.74
20,000
0.19
10,674,000
100.00
Per cent of
income from
taxes to total
income of the
Council
19.34
Per cent of
income from
non-taxes to total
income of the
Council
18.64
Thus, the income and expenditure pattern of the Council shows a balanced budget. The
conservancy department shows a high expenditure (34 per cent).
development have been given attention: traffic management, lake/drain cleaning, electrification,
street lighting, public toilets, gardens, roads, etc.
Discussions held with some municipal employees on Councils finances further revealed that the
Council generates about Rs. 5000 every month from advertisements.
Page 73
The measures taken by the State government of Uttaranchal and the local government are listed
below.
UAA organises training programmes for officials and elected representatives in the State;
programmes are conducted on various themes, such as financial management and resource
mobilisation, solid waste management, management training, double entry book-keeping,
computerisation, community participation, public-private-partnerships (PPP), etc.
Training has helped in developing ideas, creating awareness and bringing about development;
more training is required on 74th CAA and knowledge of Municipal Act.
Emphasis is given by UAA on outreach programmes; gradually number of participants is

increasing; training programmes are designed keeping in view the local issues and the target
group; before conducting the programme an informal discussion is held to understand the
perceptions of participants; this helps in the effective conduct of the programme; participants
are taken to the field for better understanding.
Recent good governance initiatives include:

o Two rickshaw stands improved through PPP; stand shade and roof lighting improved;
money is recovered through advertisement installed on top of the stand; licence for
operating rickshaw is issued by local body;
o Installation of 150 poles for street lighting; three year agreement given to Nainital Bank
and Bank of Baroda; they will also use the poles for advertisement purposes;
o Construction of public toilets at Mall road by private party; maintenance contract given
to another private operator by local body who charges Rs. 2-3 per use from citizens;
advertisement on top of bathroom is installed for generating income;
o Installation of 10 dust bins by State Bank of India who have displayed their
advertisement; saves income of local body;
o Maintenance of municipal library; advertisement displayed by local newspaper agency
Amar Ujala;
o Provision of basic services footpath, streetlights through community involvement.
Money (about Rs. 500) is collected from each household and contractor is identified
for undertaking work;
o Councillors have taken initiatives: sanitation cleanliness drive carried out; public and
councillor involved; no sanitary worker involvement; space dug for disposal of waste;
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o Executive officer has attended training programmes in key governance issues including
computerisation in local bodies
Nainital Municipal Council has benefited enormously by contracting out services to private
operator for collection of fee for mall road entry (In one year when one post was contracted,
the Council earned Rs. 3.3 million; after contracting out all three posts, Council earned Rs.
6.75 million); free entry was not allowed after contract was given; there was a lot of opposition
from the public/hoteliers/councillors;
Problems
The local government is facing severe resource crunch; full financial support is not provided
by State government; funds are required for implementing projects; only 50 per cent amount is
received from SFC; salaries are not being given on time;
Lower level staff have not been exposed to computer skills;
No segregation of solid waste is being done; more manpower is required especially for
collection of waste from tourist spots such as China peak;
Sewage is being disposed off in the lake;
Participation is less in training programmes organised by UAA; no government norms for

compulsory attendance; there is a lack of interest among the participants; in some
programmes, the Executive Officer/Chairperson are invited, however, they send their junior
staff, which affects the purpose of the programme.
IV. Case Studies Compared

Information on key local government characteristics reviewed during the course of this research is
tabulated and provided at the end of this paper (see Appendix 2). Some important observations
with respect to the functioning of selected urban local governments are listed below.
The 74th CAA, 1992 provides for the reservation of seats for women in local governments.
Such participation is observed in all local governments under review. In Nainital, a female
Chairperson heads the local government.
A number of posts continue to remain vacant in local governments, which affect adversely the
functioning of various sub-committees.
Various legislative, fiscal and other reforms to strengthen local governments are being carried
out, such as amendments in Municipal Acts; implementation of the 74th CAA provisions,
Page 75
including the SFC recommendations; contracting out municipal solid waste and other services;
imposition of new taxes; revision of tax/non-tax rates; organisation of training programmes
for municipal functionaries; etc.
The income and expenditure account of Bharatpur Municipal Council is quite large as
compared to other local governments.
None of the local governments show a deficit budget.
Data on main sources of income of urban local governments show that municipalities of
Haryana generate income mainly from internal sources, such as stamp duty, development
charges, and tax on land and buildings. On the other hand, the municipalities of Rajasthan and
Uttaranchal receive a significant amount of funds from external sources, such as Centre/State
grants and loans.
Data on income of urban local governments from various taxes and non-taxes show that this
share is high in Haryana and low in Rajasthan. It is also observed that the share of tax income
is higher than non-tax income in Alwar, Mussorie and Nainital. This implies that the other
municipalities are generating a higher share of income from non-tax sources.
Information on taxes levied reveals that in Alwar and Bharatpur (Rajasthan), the local
government levies hardly any tax despite provisions in the Municipal Act. It is observed that
Alwar Municipal Council levies only building and land tax while Bharatpur Municipal Council
levies building and land tax and entertainment tax.
Property tax/tax on land and buildings is the most common of all taxes that is levied by all
municipalities; conservancy/scavenging tax is levied only by Mussoorie and Nainital
(Uttaranchal) Municipal Councils.
Non-taxes that are commonly levied by most municipalities are licence fee, rent, copying fee,
tehbazari fee (i.e., fee obtained from hawkers) and slaughterhouse fee.
The main items of municipal expenditure are development works, staff salaries and
conservancy works.
V.
Issues of Local-Level Governance
The major findings emerging from this study are discussed in this section.
Participation in the Decision-making Process
The extent of participation in the decision-making process is understood on the basis of
perceptions/views of those municipal functionaries who participate regularly in the meetings of
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urban local governments, namely the elected members (i.e., mayor/president, councillors) and the
appointed authorities (i.e., the executive officer, and other staff). It is learnt that the nominated
and ex-officio members are generally not present in municipal meetings.
Influence of Social and Economic Factors on Decision-making
Social and economic factors related to caste, religion and economic status play a significant role in
guiding the decision-making process during municipal meetings. It is reported that
members/authorities belonging to high caste and who are economically better off dominate, and
are often successful in getting their decisions/resolutions accepted. Due to this reason, the
grievances of other members are generally not heard. In this situation, it may not be incorrect to
assume that only a particular section of the population benefits when decisions are implemented.
Influence of Political Factors on Decision-making
Party politics exists at the municipal level. It is reported that members affiliated to the largest
political parties strongly influence decisions during the meetings of the local government.
Furthermore, it is mentioned that the appointed authorities often work under pressure created by
the municipal members. In the past, several authorities have been transferred to other areas
because of not cooperating with the decisions taken by the local political leaders.
Ineffective Womens Participation in Decision-making
At least one-third of the members associated with urban local governments belong to the women
category. On the basis of discussions held with a select number of women members, it is learnt
that this group is unable to make a meaningful contribution on municipal matters discussed in the
meetings. In this regard, it is observed that illiteracy and lack of awareness cannot be accepted as
valid reasons for the ineffective participation of women members. An assessment of the
educational status of elected municipal councillors by case study area reveals that women members
are not much different from their male counterparts. A prominent reason reported by majority of
the women councillors in this respect is the dominating role played by the male members.
Yet another reason for ineffective participation by the women members in the decision-making
process is the presence of their husbands in municipal meetings. Although the Municipal Act
provides for public participation in meetings of local governments, in the opinion of some
members, the presence of husbands nullifies the possibility of effective participation of women in
local governance. In fact, non-member husbands interference acts as a negative factor.
Page 77
Ignorance among Members/Authorities on Municipal Act Provisions

The Municipal Act formulated by the state government for the constitution and governance of
urban local governments in the state is an important document that specifies, among other things,
the powers of municipal authorities and members for the conduct of business. The analysis reveals
that a high proportion of members are ignorant on the provisions of the Act regarding various
municipal matters. This inhibits them from performing and participating effectively, especially
during the municipal meetings. On the contrary, members and authorities familiar with the Act
provisions take advantage of the situation.
Dissatisfaction among Members
It is understood that there is a general feeling of dissatisfaction among some members on their
performance and participation in municipal matters. Some of the members had contested in
municipal elections with the intention that they would be able to contribute effectively insofar as
the development of their ward is concerned. They are disgusted when they come to know that
they have hardly any role to play. They feel that work practices are too complex and not easy to
comprehend. Unfortunately, the effective/influential members and authorities prefer to ignore
their grievances in this regard. Such members lose their interest in municipal matters because of
the lack of incentives offered by the State government. In this situation, it becomes difficult for
them to be accountable to the citizens who have elected them and vested their faith in them.
Rule of Law and Transparency in the Conduct of Business
The practices adopted by urban local governments during municipal meetings for executing
decisions and the procedure followed by them in the planning and implementation of urban
infrastructure projects is examined in an earlier section of this paper. The purpose of this analysis
is to assess the extent to which rule of law and transparency exists among municipal governments
in the conduct of business. The important findings emerging from this analysis are described in
the following sub-sections.
Rule of Law in the Decision-making Process
It is learnt that decisions on every aspect related to the development of urban services at the local
level are taken during the meetings held by urban local governments. A review of the perceptions
of a select number of authorities and members associated with the urban local governments on the
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frequency of meetings and the manner in which decisions are accepted reveals that these aspects
are a matter of concern. The feedback received from municipal authorities and members is
presented below in the following sub-sections.
Delays in Convening Municipal Meetings
With respect to municipal meetings, it is noted that Municipal Acts governing urban local
governments specify the frequency with which meetings should be held. On inquiry, it was found
that municipal meetings are not being held on a regular basis. In the opinion of some elected
members, the delay in holding meetings is primarily due to an absence of active cooperation
received from the elected ward members (i.e., councillors) on most municipal matters. Several
members hold the view that meetings are ineffective because the grievances of most members
(with respect to the development of their ward) are not being taken into consideration.
Violations in Recording Minutes
There is an increasing concern among the members and authorities on the manner in which the
minute book (containing the names of members present at a meeting, the proceedings held and
the resolutions passed) is maintained. It is noted that the entries in the minute book form an
important basis for the preparation of a report, which is sent to the higher authorities for
approval/ratification. In this respect, the Municipal Act provides that the minutes are to be read
out and certified as passed, unless objected to by a majority of members present at the meeting.
However, several members have reported that their consent is generally not taken on the
resolutions passed and the entries recorded in the minute book.
Factionalism of Members
Measures have been taken by the Government of India to establish a representative government at
the local level so that the needs of all sections of the society are addressed to the extent possible. It
is, however, observed that the procedure of passing a resolution during municipal meetings is
often influenced by factionalism of members. It is alleged that the dominating members are
generally successful in getting their own resolutions passed. On the other hand, the grievances of
members in minority (comprising scheduled castes/backward class/economically weaker
sections/women) are often not heard.
Transparency in the Planning and Implementation of Infrastructure Projects
Page 79
The procedure followed by urban local governments in the planning and implementation of urban
infrastructure projects is described in an earlier section of this paper. It is learnt that there are
various stages involved in this process, such as decision-making, planning and design/formulation,
financing, execution/implementation and monitoring and supervision. Discussions held with
various municipal members and authorities with respect to this aspect reveals that the practices
adopted by local governments, especially in the execution of projects, are characterised by
numerous deficiencies, which affect adversely the project planning and implementation process.
Some issues emerging from this analysis are described in the following sub-sections.
Lack of Transparency in Sharing Information
Several members and authorities associated with the selected urban local governments have
reported that details on project contracts entered with the private contractors are often not shared
with all members during the meetings, despite provisions in the Municipal Act that information on
every contract signed for a project requires to be placed before the members. This shows that
there is a lack of transparency. In fact, some members who were interviewed felt that information
on execution of projects, such as advertisement and release of tenders for contractors, signing of
contracts and publicity of development works, is shared only within the group of influential
members and authorities. It appears that such members have a vested interest in the
implementation of projects. One of the members interviewed reported that only 15 per cent of the
total outlays were spent on development works.
Unfair Practices in the Publicity of Development Works
As mentioned earlier, advertisements are published in local newspapers by the urban local
governments for the purpose of inviting tenders from private contractors to undertake projectrelated development works. In the opinion of some members representing the selected urban local
governments, such advertisements are published in those newspapers, which are not commonly
read. It is learnt that some influential members follow this practice to select contractors of their
own choice.
Discrimination in the Selection of Contractors
In the selection of contractors, the urban local government invites tenders. Every detail specified
in the tender is to be discussed and shared with the members during municipal meetings before it
is short-listed and signed. However, it is alleged that such discussions take place only within the
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influential group. Moreover, it is reported that tenders quoting the lowest rates are often rejected
in favour of those, which are quoting much higher rates. Such a practice, according to some
members, takes its toll on the quality of construction undertaken by the private contractors.
Efficiency in Other Municipal Management and Finance Practices
Low Level of Services
Urban local governments are unable to meet the basic service requirements of the population
living in the selected urban centres. It is reported that a high proportion of the
population/households remain uncovered by piped water supply facility, underground sewer
facility and solid waste collection services. It is further observed that the quality of piped water
supply, the condition of underground sewer/drains, the disposal of sewage and solid waste are
some of the aspects, which are in a critical state.
Bias against Maintenance of Existing Services
There appears to be a bias against maintenance of existing urban services. In this regard, it is
observed that the state government has taken measures for the successful implementation of new
infrastructure projects at the local level. The municipal members and authorities are in fact quite
concerned about the timely availability of such funds and about signing of new project contracts
with private contractors. A similar enthusiasm among municipal officials with respect to the
maintenance and upkeep of basic civic services, however, seems to be lacking. It is learnt that
there is considerable inefficiency among the municipal personnel in the performance of their
duties. This attitude is leading to the deterioration of existing civic services.
Inefficiency in Financial Management

There is inefficiency among urban local governments in the management of their finances, which
affects adversely the efficient delivery of basic civic services. Some of the important observations
noted in this regard include: deficiencies in the procedure for determining the cost of services; low
cost recovery from taxes, non-taxes; high outstanding dues of previous years; high dependence on
external sources of finance; etc.
Page 81
VI. Conclusion
The purpose of this study is to identify the major issues of governance at the municipal/local level
in a select number of urban centres of India. This assessment is based on a review of key urban
local government characteristics, namely constitution and governance, duties, composition,
management and finance practices, State/Local initiatives and problems.
The findings of this study show that urban local governments in India are plagued by numerous
problems, which affect their performance in the efficient discharge of their duties. These problems
are discussed in section five of this paper and relate to the extent of participation and rule of law
in the municipal decision-making process, transparency in the planning and implementation of
infrastructure projects, and level of efficiency in various municipal management and finance
practices.
Considering the significance of the prevailing issues of governance at the local level, a number of
questions may be raised, such as:
What steps should be taken to achieve effective participation of all members in the municipal
decision-making process? Is it possible to reduce the influence of various social, economic
and political factors on decision-making? Is it possible to consider education as an eligibility
criterion for elected members?
What steps should be taken to ensure that rule of law and transparency exists in the conduct
of business by municipalities? Is it possible for the municipal functionaries to cooperate with
each other for the welfare of the citizens?
What steps should be taken to achieve a high level of efficiency in various municipal
management and finance practices? Is it possible for the municipal functionaries at all
levels to administer their tasks efficiently and in a responsible manner? Is it possible to identify
the deficiencies in various management and finance practices and develop a methodology to
overcome such problems? Is it possible for the State/Local government to experiment with
various innovative practices?
What steps should be taken to achieve equity in service availability? Is it possible to evolve
suitable criteria for the devolution of funds at the ward level for the purpose of infrastructure
development? Is it possible for the local government to collect and maintain data on service
levels in the wards?
What further steps should be taken to strengthen the process of implementation of SFC
recommendations?
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Rumi Aijaz
What further steps should be taken to build the capacity of municipal functionaries? Is it
possible for the trainers to impart training within the premises of the local government rather
than the other way round for greater participation?
It may be stated that such questions are applicable to most municipalities of India and hence there
exists an urgent need to find appropriate solutions. To conclude, fresh thinking is necessary to
resolve the problems confronting urban local governments in India.
Acknowledgements The author is grateful to the faculty and staff of the Asia Research Centre,
London School of Economics and Political Science, United Kingdom, for providing all facilities
and support in the conduct of this research. In India, various municipal functionaries and
professionals have helped in providing data for this study. They have also devoted time towards
sharing their experiences on the present state of municipal affairs. Without their assistance and
feedback, it would be impossible to conduct this study. The author acknowledges the cooperation
received from them.
Page 83
Appendix 1: Information on People Met and Interviewed

Bahadurgarh (Haryana): Municipal Council - Mr. A.K. Jain, Executive Officer; Mr. Gulshan
Kumar, Accountant, Tel. 95127 6230204; Mr. Krishna Sharma
Gurgaon (Haryana): Municipal Council - Mr. Y.S. Gupta, Executive Officer; Mr. B.D. Valecha,
Office Superintendent; Mr. R.L. Bansal, Tax Superintendent, Tel. 0124 2320387; Mr. Karan
Singh
Alwar (Rajasthan): Municipal Council - Ms. Sanju Sharma, Executive Officer/Commissioner;
Office Superintendent; Mr. Gyan Saran; Mr. Rajvir Yadav; Mr. Mukesh Gupta, Tel. 2701364,
2700730
Bharatpur (Rajasthan): Municipal Council Health Officer; Office Superintendent, Tel. 05644 222170
Mussoorie (Uttaranchal): Municipal Council - Mr. Subhash Gupta, Executive Officer; Mr.
Sitaram Bharti, Office Superintendent; Mr. Girdhar Gopal, Accountant, Tel. 2632251, 2632039;
Mr. Rajpal, Head Clerk; Mr. Bhagwan Singh Pawar, Councillor, Ward No. 1
Nainital (Uttaranchal): Municipal Council - Ms. Sarita Arya, Chairperson; Mr. K.N. Painuly,
Executive Officer; Mr. S.C. Choudhari, Accountant; Mr. Devendra Joshi, Junior Engineer; Mr.
Mahesh Gururani, Meeting Clerk; Mr. Rajinder Pargaien, Councillor, Ward No. 1; Mr. Deepak
Kumar, Councillor, Ward No. 3; Uttaranchal Academy of Administration (Training Institute) - Mr.
D.S. Dhapola, Project Director, Urban Affairs Unit; Mr. Dinesh Mahtolia, Senior Project Manager.
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Rumi Aijaz
Appendix 2: Main Characteristics of Urban Local Governments in Selected

Case Studies
Description of
Item
Name of State
Classification of
municipalities in
the State
Total population
of town
(2001)
Area of town
(in sq. kms.)
(2001)
Approx. distance
from Delhi (kms.)
Number of wards
in town
Civic status
Name of
municipal Act
governing local
government
Number of duties
as per State
municipal Act
Composition
Elected
chairperson
(male/female)
Executive Officer
(male/female)
Vacant positions
Name of Town
Bahadurgarh
Gurgaon
HARYANA
Municipal Corporations
(Nagar Nigam)
Municipal Councils (Nagar
Parishad)
Municipal Committees
(Nagar Panchayat)
Alwar
Bharatpur
RAJASTHAN
(Nagar Nigam) Class I
Parishad) Class I
Municipal Boards (Nagar
Palika Mandal) Class II, III,
IV
260,593
204,587
119,846
172,955
20
N.A.
49
29
10
31
31
Mussoorie
Nainital
UTTARANCHAL
(Nagar Nigam)
Palika Parishad)
Nagar Panchayats
26,075
38,630
N.A.
64.75
11.73
170
180
290
330
50
45
11
11
M. Council
M. Council
The Haryana Municipal Act,
1973
M. Council
M. Council
The Rajasthan Municipalities
Act, 1959
M. Council
M. Council
The United Provinces
Municipalities Act, 1916
18 tasks
(listed in 12th Schedule)*
23 obligatory duties; and

25 discretionary duties
36 obligatory duties; and

22 discretionary duties
President (1)
Councillors
(31) - 20
males; 11
females; 3 SC
councillors; 2
BC
councillors
Nominated
persons
Executive
Officer (1)
Other
employees
(48) and
sweepers
(110)
President
(1)
Councillors
(31) - 18
males; 13
females
Nominated
persons (3)
Executive
Officer (1)
Other
employees
(132) and
sweepers
(399)
President (1)
Councillors
(50) - 33
males; 17
females
Ex-officio
members
MP, MLA
Nominated
persons
Commissioner (1)
Other
employees
(207) and
sweepers
(285)
Male
Male
Male
16
President
(1)
Councillors
(11) - 7
males; 4
females
Ex-officio
members
MP, MLA
Nominated
persons
Executive
Officer (1)
Other
employees
and
sweepers
Male
President
(1)
Councillors
(45) - 31
males; 14
females
Ex-officio
members
MP, MLA
Nominated
persons
Commissioner (1)
Other
employees
(N.A.) and
sweepers
(410)
Male
Male
President
(1)
Councillors
(11) - 7
males; 4
females
Ex-officio
members
MP, MLA
Nominated
persons
Executive
Officer (1)
Other
employees
and
sweepers
(241)
Female
Male
Female
Male
Male
Male
168
239
N.A.
N.A.
N.A.
Page 85
Description of
Item
Name of State
Year of last
election to
municipality
Name of subcommittees/
committees
Name of
branches/
sections/
divisions
Name of Town
Bahadurgarh
Gurgaon
HARYANA
1998, 2004
2000, 2005
Alwar
Bharatpur
RAJASTHAN
1999, 2004
Finance
Public Works and Buildings
Sanitation & Water Supply
N.A.
General
Adminis.
Tax &
Licensing
Municipal
Properties
Public
Safety &
Convenience
Public
Health
Water
Supply
Municipal
Works
Some other Statelevel agencies in

town
PWD, HUDA,
PHED
PWD,
PHED,
HUDA
Total income
(Rs.)
Total expenditure
(Rs.)
Difference (Rs.)
62,200,414
(2004-5)
61,231,953
(2004-5)
(+) 968,461
(2004-5)
121,849,823
(2002-3)
108,092,916
(2002-3)
(+)
13,756,907
(2002-3)
Stamp duty,
tax on
buildings &
Main sources of
income
Stamp duty,
development
charges, house
Executive
Finance
Health and Sanitation
Building and Works
Rules and Bye-laws
Public Conveyance
General
Adminis.
Tax
Public
Health
Motor
Garage
Public Safety
Electricity
Animal
House
Parks
Repairs
Water Works
Library
Municipal
Works
UIT, Housing
Board, PHED,
PWD
General
Adminis.
Tax
Public
Health
Public
Safety
Electricity
Animal
House
Parks
Repairs
Municipal
Works
Mussoorie
Nainital
UTTARANCHAL
2003
Public
Health
Public
Works
Tax
Assessment
Finance
Garden
Finance,
Toll and
Taxes
Public
Works
(Tax)
Assessment
Public
Health
Education
Market
Library
Flats
N.A.
N.A.
UIT, PHED,
PWD
Garhwal Jal
Sansthan
(water
supply),
Electricity
Board,
MDDA
101,435,282
(2004-5)
101,435,282
(2004-5)
0
(2004-5)
257,229,000
(2004-5)
257,229,000
(2004-5)
0
(2004-5)
45,292,390
(2004-5)
45,292,390
(2004-5)
0
(2004-5)
PWD,
Garhwal Jal
Sansthan,
Electricity
Board/Power
Corporation,
Education
Dept., Forest
Dept.
57,255,531
(2004-5)
57,255,531
(2004-5)
0
(2004-5)
Octroi
compensatory
grant, SFC
Octroi
compensatory
grant, 11th
SFC grant,
tax on houses
& land,
SFC & other

grants, bank
loan, building
Page 86
Rumi Aijaz
Description of
Item
Name of State
Per cent of
income from
taxes to total
income of the
Council
Per cent of
income from nontaxes to total
income of the
Council
Per cent of
income from
taxes & non-taxes
to total income of
the Council
Main items of
expenditure
Name of Town
Bahadurgarh
Gurgaon
HARYANA
tax, rent of
land
shops,
electricity duty
Alwar
Bharatpur
RAJASTHAN
grant, 11th
finance
finance
commission,
commission
SFC, road
grant, building
cutting
& land tax, sale
charges
of land, general
grants
5.06
0.41
(2004-5)
(2004-5)
Mussoorie
Nainital
UTTARANCHAL
revolving
tax,
fund, rent of
conservancy
land,
tax, motor
buildings,
vehicle fee,
parking, etc.,
rent
scavenging
tax
22.77
19.34
(2004-5)
(2004-5)
20.93
(2004-5)
33.46
(2002-3)
65.38
(2004-5)
37.77
(2002-3)
2.79
(2004-5)
1.57
(2004-5)
9.27
(2004-5)
18.64
(2004-5)
86.31
(2004-5)
71.23
(2002-3)
7.85
(2004-5)
1.98
(2004-5)
32.04
(2004-5)
37.98
(2004-5)
Development
works
construction of
pavements,
drains & roads;
Staff salaries
conservancy
(removal) staff
Development
works road
maintenance;
Staff salaries
conservancy
(removal)
staff
Staff salaries
conservancy
staff;
Development
works
construction of
roads
Development
works new
road works,
drain & road
connections;
Staff salaries
public
health
department
Public health
&
convenience
sanitary
workers pay;
Development
works road
construction
& repairs,
ropeway
trolley repairs
N.A.
Conservancy
department;
public works
department
Expenditure on
35.46
33.11
48.60
20.35
salaries (%)
(2004-5)
(2002-3)
(2004-5)
(2004-5)
Expenditure on
46.61
43.84
11.14
28.63
26.98
development
(2004-5)
(2002-3)
(2004-5)
(2004-5)
(2004-5)
works (%)
Expenditure on
21
24
36
14
26
solid waste
(2004-5)
(2002-3)
(2004-5)
(2004-5)
(2004-5)
management (%)
Source: Census of India, 2001a and 2001b; Field survey conducted during October December 2005.
Notes: (i) M. Council Municipal Council; N.A. Not Available.
(ii) * See Box 2.2.
Page 87
N.A.
14.71
(2004-5)
34
(2004-5)
Abbreviations
ADB
ARC
ARV
AUSAID
BA
CAA
CC
DFID
DLB
DRDA
DUD
FC
GMFB
HIPA
HUDA
HSEB
HUDCO
IAS
IDFC
ILFS
JBIC
JNNURM
KUIDC
LB
LIC
MC
MDDA
MLA
MP
NCR
NCT
NRY
PHED
PPP
PWD
RIPA
SC
SFC
SJSRY
ST
TNUDF
UAA
UBSP
UIT
ULB
UP
USAID
WHO
Asian Development Bank

Asia Research Centre
Annual rental value
Australian Agency for International Development
Building Application
Constitution Amendment Act
Cement concrete
Department for International Development
Directorate of Local Bodies
District Rural Development Agency
Department of Urban Development
Finance Commission
Gujarat Municipal Finance Board
Haryana Institute of Public Administration
Haryana Urban Development Authority
Haryana State Electricity Board
Housing and Urban Development Corporation
Indian Administrative Service
Infrastructure Development and Finance Corporation
Infrastructure Leasing and Financial Services
Japan Bank for International Cooperation
Jawaharlal Nehru National Urban Renewal Mission
Kerala Urban Infrastructure Development Corporation
Local Body
Life Insurance Corporation
Municipal Council
Mussoorie-Dehradun Development Authority
Member of Legislative Assembly
Member of Parliament
National Capital Region
National Capital Territory
Nehru Rozgar Yojana (Employment Scheme)
Public Health Engineering Department
Public Private Partnership
Public Works Department
Rajasthan Institute of Public Administration
Scheduled Caste
State Finance Commission
Swarn Jayanti Shahri Rozgar Yojna (Urban Employment Scheme)
Scheduled Tribe
Tamil Nadu Urban Development Fund
Uttaranchal Academy of Administration
Urban Basic Services for the Poor
Urban Improvement Trust
Urban Local Body
Uttar Pradesh
United States Agency for International Development
World Health Organisation
Page 88
Rumi Aijaz
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Bye-laws, Rules and Regulations of the Nainital Municipality under U.P. Municipalities Act II of 1916,
Published by Order of the Municipal Board, Nainital, August 1966.
Census of India (2001a): Primary Census Abstract Total Population, Series-1, India, Table A-5.
Census of India (2001b): Final Population Totals Urban Agglomerations and Towns, Series -1, India.
Constitutional Provisions Relating to Village Panchayats and Municipalities in India (1999), Lucknow:
Eastern Book Company.
Government of Haryana (1997): Report of the First State Finance Commission, Haryana (for the period
1997-98 to 2000-01), Chandigarh.
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to the Twelfth Finance Commission (Volume VI), Finance Department.
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Health and Family Planning.
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period 1995-2000).
Government of Rajasthan (2001): Report of the Second State Finance Commission, Rajasthan (for the
period 2000-5).
Government of Rajasthan (2003): Action Taken Report on the Recommendations for ULBs by the Second
State Finance Commission.
Government of Uttaranchal (2002): Report of the First State Finance Commission of Uttaranchal, Vol. I
(for the period 2001-6).
Government of Uttaranchal (2004): Actions Taken by the State Government on Recommendations of the
First State Finance Commission.
Municipal Law in Rajasthan (2005), Volume 1 and 2, Revised Fourth Edition, Jaipur: Bafna
Publishing House.
Report of the Committee of Ministers Constituted by the Central Council of Local Self
Government (1963): Augmentation of Financial Resources of Urban Local Bodies.
Rules, Regulations and Bye-laws of the Mussoorie Municipality under U.P. Municipalities Act (Act II of 1916),
Published by Order of the City Board, Mussoorie, March 1957.
Sachdeva, Pardeep (1993): Urban Local Government and Administration in India, Allahabad: Kitab
Mahal.
The Haryana Municipal Act, 1973 (2005), By Bhagatjit Singh Chawla, Third Edition, Chandigarh:
Chawla Publications (P) Ltd.
Page 89
UNESCAP (2006): What is Good Governance? http://www.unescap.org/huset/gg/governance.htm

UN-HABITAT (2006): The Global Campaign on Urban Governance,
http://www.unhabitat.org/campaigns/governance/activities_1.asp
United Provinces Municipalities Act, 1916 (2004), Allahabad: Alia Law Agency.
Endnotes
1 governance is the process of decision-making and the process by which decisions are implemented, an
analysis of governance focuses on the formal and informal actors, involved in decision-making and
implementing the decisions made and the formal and informal structures that have been set in place to
arrive at and implement the decision (UNESCAP, 2006: 1).
2 The United Nations (UN) has played a pioneering role in defining the concept. There appears to be a
consensus on the norms/principles of good governance put forward by the UN. According to the UN,
Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable,
transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures
that corruption is minimised, the views of minorities are taken into account and that the voices of the most
vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of
society (UNESCAP, 2006: 2).
3 India Campaign for Good Urban Governance was launched on 3 September 2001 by the Government of
India and UN-HABITAT (UN-HABITAT, 2006: 1).
4 Findings of the Royal Commission on Decentralisation, 1907 (Sachdeva, 1993: 58).
5 The year 1992 is considered as a turning point in the history of urban local governments in India.
6 Urban local governments are governed by municipal Acts enacted by the concerned State.
7 Now re-named as Chennai, Mumbai and Kolkata respectively.
8 Local government, that is to say, the constitution and powers of Municipal Corporations, Improvement
Trusts, District Boards, mining settlement authorities and other local authorities for the purpose of local
self-government or village administration (Sachdeva, 1993: 62).
9 Economic and social planning, urban planning would fall within the ambit of both Entry 5 of State List
and Entry 20 of the Concurrent List (Sachdeva, 1993: 62).
10 Municipal Councils were known by different names in different parts of the country, such as City
Municipality, Municipal Committee, Municipal Board, Municipality, Borough Municipality, etc.
11 In the three north-eastern states of India, namely Meghalaya, Mizoram and Nagaland, the 74th
Amendment Act provisions have not been applied, and the old classification of municipalities still exist.
12 Termed in the Municipal Acts as Municipal Committee in Haryana and Municipal Board in
Rajasthan.
13 Local bodies existing in Union Territories of India and the Cantonment Boards in urban areas are
established by the Union laws.
14 A major amendment in key legal provisions for municipalities is observed following the enactment of the
74th Amendment Act, 1992 by the central government.
15 The Municipal Councils selected for this study are governed by: The Haryana Municipal Act, 1973
(applies to Bahadurgarh and Gurgaon); The Rajasthan Municipalities Act, 1959 (applies to Alwar and
Bharatpur); and the United Provinces Municipalities Act, 1916 (applies to Mussoorie and Nainital).
16 For example, The Patna Municipal Corporation Act, 1951.
17 For example, The Haryana Municipal Act, 1973 provides a list of 18 functions (see Box 2.2); The
Rajasthan Municipalities Act, 1959 provides a list of 23 primary (obligatory) functions and 25 secondary
(discretionary) functions; and The United Provinces Municipalities Act, 1916 provides a list of 36 obligatory
and 22 discretionary functions.
18 A municipal area is divided into wards in such a manner that the population in each ward is kept the
same, as far as possible. Furthermore, the number of wards to be delimited in a municipal area depends on
Page 90
Rumi Aijaz
the population of the town. For example, the Haryana Municipal Act, 1973 provides that municipalities
with a population size of 100,000 300,000 will have 31 wards/seats;
19 The 74th Amendment Act, 1992 provides that: (a) the superintendence, direction, and control of the
preparation of electoral rolls, and the conduct of all elections to municipalities shall vest in the State
Election Commission; and (b) an election to constitute a municipality shall be completed before the expiry
of its duration five years or before the expiration of a period of six months from the date of its
dissolution. It may be mentioned here that in the past local governments in India were dissolved by the
State government due to poor performance and remained non-functional for extended periods of time.
This affected adversely the condition of urban areas.
20 The 74th Amendment Act, 1992 provides that seats shall be reserved for the Scheduled Castes, Scheduled
Tribes, Women belonging to the Scheduled Castes or the Scheduled Tribes, all other Women, and the
Backward Class of citizens, as the case may be. The criteria for reservation of all seats to municipalities are
defined in the respective State municipal Acts.
21 The Legislature of a State may provide for the representation of persons (referred to in Table 2.5) in a
municipality.
22 Formal statement of a committees opinion.
23 The power to vote for a resolution lies only with the councillor. The other members and authorities who
participate in the meeting do not have liberty to vote upon or to make any proposition at such meetings.
However, in case of an equality of votes, the Mayor/President has the right of casting vote.
24 Special meetings may, however, be called by the presiding officer of a municipality at any time.
25 Statement of the price at which one offers to supply goods or services. For example, tender for the
construction of an overhead water tank.
26 For example, The Rajasthan Municipalities Act, 1959 provides for the appointment of the following
committees: (a) executive committee; (b) finance committee; (c) health and sanitation committee; (d)
building and works committee; (e) rules and bye-laws committee; and (f) public conveyance committee.
27 With increasing realisation that property tax has considerable potential to raise local resources and that
the recovery of service taxes linked to property tax is also affected, local governments in a few Indian states
(namely, Andhra Pradesh, Bihar, Gujarat, Karnataka, Tamil Nadu and West Bengal) have rationalised the
property tax assessment procedures.
28 The central government budget allocations - indicated in the Five Year and Annual Plan documents
prepared by the Planning Commission, Government of India - are a major source of financing urban
infrastructure in India. From the government budget, funds are provided for the development of specific
infrastructure, such as water supply and sanitation, as well as released for various urban development
schemes.
The Central Finance Commission (CFC) provides grants to local governments (rural and urban) every five
years (released through state governments at one year interval) with the aim of strengthening their financial
position, i.e., to enable local governments to discharge at least their primary functions in an effective
manner, including the provision and maintenance of basic civic services, such as primary education, primary
health care, safe drinking water, street lighting, sanitation including drainage and scavenging facilities, etc.
The distribution of these grants to the state government and for further allocation among various local
governments is based on certain urban area characteristics, such as population size, extent of
decentralisation occurred, efforts made by local governments to raise own revenues, level of per capita
income and geographical area.
29 Local governments receive a consolidated amount every year from the state-level finance commission
(SFC) to fulfil their expenditure responsibilities, including those related to the development and provision
of essential urban/municipal/civic services. The Finance Commissions of various states have
recommended general principles in respect of fiscal transfers from the states to panchayats (rural local
governments) and municipalities. Such fiscal transfers/devolution of funds from the state government to
the local governments are distributed among the different categories/types of urban local governments
(namely, Municipal Corporations, Municipal Councils and Town/Nagar Panchayats) on the basis of criteria,
such as population size and geographical area within the jurisdiction of local governments. Within this
scheme of devolution, emphasis is simultaneously laid on making local government authorities realise that
they should make productive use of their own resources by effective implementation of their tax laws and
recovery of their dues.
Page 91
30 In India, four major financial institutions have been engaged in providing finance for urban
infrastructure development. These include the Housing and Urban Development Corporation (HUDCO),
the Life Insurance Corporation (LIC), the Infrastructure Leasing and Financial Services (IL&FS) and the
Infrastructure Development and Finance Corporation (IDFC). These agencies have contributed
significantly towards financing infrastructure schemes/projects on water supply, sewerage, drainage, solid
waste management, transport centres/terminals, roads, bridges, etc.
31 In some states of India, financial intermediaries (i.e., institutions such as banks, associations, agencies,
etc.) have been established to enable municipal governments, statutory boards and private corporations to
borrow funds for implementing a wide range of infrastructure projects including water supply, sewerage,
solid waste management, roads/bridges, transportation, site and services. Notable among these
intermediaries is the Tamil Nadu Urban Development Fund which was created as an important component
under the Tamil Nadu Urban Development Project in 1988 by the state government of Tamil Nadu and
select financial institutions, with active support from the World Bank, for funding urban infrastructure
projects in the state. TNUDF is funded by contributions from state government through loans as well as
grants, and repayment by urban local governments. The fund is managed by a private Asset Management
Company, which also operates a grant fund that is primarily used to strengthen the financial, technical, and
managerial capacities of the municipal governments. It is learnt that urban local governments have
benefited tremendously in terms of the easy access to capital, which was previously not available, and on
acceptable terms and conditions. There exist some state/metropolitan-level institutions that provide funds
to urban local governments for infrastructure development in other Indian states. Examples of these
include Kerala Urban Infrastructure Development Corporation (KUIDC), Karnataka Urban Infrastructure
Development Corporation, and Gujarat Municipal Finance Board (GMFB).
32 In some States, municipal bonds have been issued to raise private capital. Knowing that funds for urban
services cannot be supplied through traditional means and that these can be met only with the addition of
private finance, some local governments, namely Ahmedabad, Bangalore, Ludhiana, Nagpur, Nashik, etc.,
have turned to municipal bond markets as the solution.
33 External assistance and donor interventions in Indias urban sector grew during the early 1990s. Over a
period of time, the financial assistance programmes covered the following urban sub-sectors: (a) urban
water supply and sanitation; (b) urban environment; (c) urban planning; (d) urban transport; (e) urban
infrastructure; (f) capacity building of urban local bodies; (g) urban poverty reduction; (h) housing; and (i)
research, training and database.
34 The aim of the JNNURM is to encourage reforms and create conditions for the planned development of
about 63 cities/urban agglomerations. The main focus is on promoting efficiency in urban infrastructure
and service delivery mechanisms, community participation, and accountability of local governments and
statutory agencies towards urban citizens. The Mission was launched on 3.12.2005 and has a duration of
seven years beginning 2005-06.
35 The UIDSSMT has been initiated for meeting the urban infrastructure requirements in cities/towns
other than those included in the JNNURM. The scheme subsumes a number of on-going urban
development schemes, namely Infrastructure Development in Mega Cities, the Integrated Development of
Small and Medium Towns (IDSMT), Accelerated Urban Water Supply Programme (AUWSP), and the
Urban Reform Incentive Fund (URIF).
36 The MML is a unified law for the three types of municipalities, which has been prepared to assist/guide
urban local governments in implementing the 74th Amendment Act Provisions, and to provide a legislative
framework for implementing the urban sector reforms identified by the Ministry of Urban Development.
37 A National e-Governance Action Plan has been drawn to create a citizen/business-centric environment
at the centre, state and integrated service levels. The focus is on promoting use of technology to improve
the functioning of government departments.
38 Report cards (with information on rating of major agencies) have been prepared for some urban centres,
namely Ahmedabad, Bangalore, Chennai, Kolkata, Pune, to assess the performance of service providers.
These are based on feedback through sample survey from citizens on the citys services.
39 The introduction of a citizens charter by a few urban local governments in India, namely New Delhi
Municipal Council and Mumbai Municipal Corporation, is yet another approach for ensuring accountability
and transparency among agencies dealing with public services. Citizens charter is a statement prepared by
the local government which provides information on citizens entitlement to various municipal services, i.e.,
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Rumi Aijaz
it describes the level and quality of service which the people have a right to expect and what steps to take if
the service level and quality is below their expectation.
40 To overcome the problems related to the governance of urban local governments, some state
governments in India have taken the initiative to remodel their administrative structure. In the new
arrangement (known as Mayor-in-Council), the executive power is vested in the Mayor and the council of
elected representatives, whereas the Municipal Commissioner functions under the supervision and control
of the Mayor, and is responsible for providing assistance in administrative matters. Thus, the Mayor and the
Council play a more active role in policy formulation as well as in executive matters.
41 A National Municipal Accounting Manual has been prepared which details out the accounting policies,
procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions
and produce accurate and relevant financial reports. The Manual is to be adopted and followed by various
State governments while drafting their State-specific municipal accounts manual. This initiative is expected
to enhance the capacity of urban local governments in municipal accounting leading to increased
transparency and accountability in utilisation of public funds and to ensure that such local institutions play
their roles more effectively.
42 This scheme has been introduced to enable smaller municipalities explore alternative source of funding
for their bankable projects. It aims at providing credit enhancement to access market borrowings on a
creditworthy basis.
43 This scheme facilitates city-level reforms by funding the transaction costs of moving towards sustainable
systems of municipal management and service delivery.
44 In a growing number of urban centres, including Navi Mumbai, Rajkot, Chennai, Tiruppur, the private
sector has been encouraged to play a role in various service delivery aspects. By involving the private sector,
the local agencies have benefited in terms of cost savings and better performance through competition.
45 A review of the Indian experience in participatory governance reveals that community participation in
the improvement of basic services has occurred on a limited scale. Such participation has taken place in two
ways, i.e., as a result of their own initiative and by their involvement in government-run programmes.
46 Internal services shall mean (i) metalling of roads and paving of footpaths; (ii) turfing and plantation
with trees of open spaces; (iii) street lighting; (iv) adequate and wholesome water supply; (v) sewers and
drains both for storm and sullage water and necessary provision for their treatment and disposal; and (vi)
any other works that the committee may think necessary for the development of the area comprised in the
scheme [The Haryana Municipal Act, 1973 (2005: 359)].
Page 93

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Asia Research Centre Working Paper 19

Copyright Rumi Aijaz, 2007

Form of Urban Local Government in India ..................................................................... 5

The Case Studies............................................................................................................ 23

Case Studies Compared ................................................................................................. 75

Issues of Local-Level Governance................................................................................. 76

Appendix 1: Information on People Met and Interviewed ........................................................ 84

Challenges for Urban Local Governments in India

What are the major issues of governance at the municipal/local-level?

Scope and Limitations of Research

Constitution and governance

Conduct of business, i.e., municipal management and finance practices

Data Base and Research Methodology

Table 1.1: The Case Studies

Challenges for Urban Local Governments in India

II. Form of Urban Local Government in India

Challenges for Urban Local Governments in India

Table 2.1: Evolution of Municipalities in India

After 1870 and up

Challenges for Urban Local Governments in India

Box 2.1: Constitution (Seventy-fourth Amendment) Act Provisions

Constitution of Municipalities (namely, Municipal Corporation, Municipal Council, and Nagar

Typology and Constitution of Municipalities

Figure 2.1: Changes in Typology of Municipalities

Table 2.2: Main Characteristics of Urban Local Governments

Rationale for Constitution and Brief Characteristics

Challenges for Urban Local Governments in India

Type of Municipality and Criteria

Population of not more than 50,000

Table 2.4: Functions of Urban Local Governments

Challenges for Urban Local Governments in India

Box 2.2: Powers, Authority and Responsibilities of Municipalities (Article 243 W)

Table 2.5: Composition of Urban Local Governments

State Municipal Acts.

Challenges for Urban Local Governments in India

Box 2.3: Reservation of Seats in Municipalities (Article 243 T)

Municipal Management Practices

Table 2.6: Role of Select Municipal Members and Authorities

Challenges for Urban Local Governments in India

Six times a year

One-third of total members

Voting by elected members

Voting by elected members

Source: State Municipal Acts.

Figure 2.2: Stages in Project Planning and Implementation

PLANNING AND DESIGN/FORMULATION

MONITORING AND SUPERVISION

Challenges for Urban Local Governments in India

approval/ratification and technical sanction.

Table 2.8: Monitoring of Urban Infrastructure Projects

Challenges for Urban Local Governments in India

Committee System in Municipalities

Table 2.9: Sources of Funds for Municipalities

Budgetary allocations, central

Budgetary allocations, state finance

TNUDF, KUIDC, GMFB, etc.

Municipal bonds, etc.

Source: Literature review.

Challenges for Urban Local Governments in India