URBAN LOCAL BODIES

Urban Local Bodies (ULBs) in India are institutions of local self-government that are responsible for the administration of urban areas. These bodies play a crucial role in local governance and are instrumental in the development and management of cities and towns.

The structure of ULBs

The structure of ULBs may vary across states, but they generally fall into three main categories:

• Municipal Corporation: Municipal Corporations are established in larger urban areas. They have a mayor-council form of governance. The mayor is the elected head of the corporation, and the council consists of elected members representing different wards. Municipal Corporations have a wide range of functions, including urban planning, public health, water supply, waste management, education, and infrastructure development.
• Municipal Council: Municipal Councils are established in smaller urban areas. They have elected members, including a chairperson. The structure may vary, with some councils having a municipal commissioner as an executive head. Municipal Councils perform functions similar to Municipal Corporations but are tailored to the scale and needs of smaller urban areas.
• Nagar Panchayat: Nagar Panchayats are established for transitional areas, emerging towns, or areas in transition from rural to urban. They have elected members and a chairperson. Nagar Panchayats focus on basic civic amenities and services, and their functions may include sanitation, water supply, and street lighting.

4. Functions of Urban Local Bodies in India

Basic Amenities and Services

• Water Supply and Sanitation: Ensuring access to clean drinking water and proper sanitation facilities is a top priority for ULBs. They handle water treatment and distribution, sewerage systems, drainage, and waste management.
• Public Health: ULBs are responsible for maintaining public health standards through initiatives like immunization programs, healthcare infrastructure development, and disease prevention measures.
• Street Lighting and Maintenance: ULBs ensure proper lighting and cleanliness of streets, roads, and public spaces for safety and aesthetics.
• Public Transportation: ULBs may manage public bus systems, rickshaws, and other forms of local transport to provide efficient and affordable mobility options.

Urban Planning and Development

• Land Use Planning: ULBs prepare and implement master plans for urban development, including zoning regulations, land use allocation, and infrastructure development plans.
• Building Permits and Construction: ULBs grant building permits, regulate construction activities, and ensure adherence to building codes for safe and sustainable urban development.
• Parks and Recreation: ULBs create and maintain parks, gardens, playgrounds, and other recreational spaces for the well-being of citizens.
• Slum Improvement and Redevelopment: ULBs address challenges like slums and urban poverty through improvement programs, infrastructure upgrades, and relocation projects.

Social Welfare and Education

• Primary Education: ULBs may manage primary schools, libraries, and other educational facilities within their jurisdiction.
• Social Welfare Programs: ULBs implement government programs for poverty alleviation, social welfare schemes for marginalized groups, and support for vulnerable populations.
• Community Development: ULBs promote community engagement through initiatives like cultural events, sports activities, and citizen participation programs.
• Disaster Management: ULBs prepare for and respond to natural disasters and emergencies, ensuring public safety and minimizing damage.

Financial Management and Revenue Generation

• Local Taxes and Fees: ULBs levy property taxes, user charges for services like water and sanitation, and other fees to generate revenue for their operations.
• Government Grants and Funding: ULBs receive grants from central and state governments for specific development projects and programs.
• Public-Private Partnerships: ULBs may collaborate with private companies to develop infrastructure, manage services, and attract investments for urban development.

Transparency and Accountability

• Public Meetings and Grievance Redressal: ULBs hold public meetings, maintain transparency in their decision-making processes, and establish grievance redressal mechanisms for citizen concerns.
• Right to Information Act: ULBs are obligated to provide information to citizens under the Right to Information Act, promoting transparency and accountability.
• E-Governance Initiatives: ULBs are increasingly adopting e-governance solutions for online service delivery, permit applications, and citizen engagement to enhance efficiency and accessibility.

5. Sources of Revenue for Urban Local Bodies

• Property Tax: A tax on the value of properties within the jurisdiction of the ULB.
• User Charges: Fees for services such as water supply, sewerage, and solid waste management.
• Professional Tax: A tax on the income earned by individuals engaged in various professions.
• Grant-in-Aid: Financial assistance provided by the state and central governments.
• Development Charges: Fees levied for allowing construction and development activities.
• License Fees: Charges for licenses issued for various commercial activities.

6. Challenges Faced by Urban Local Bodies (ULBs) in India

• Limited Financial Resources: ULBs often grapple with limited revenue-raising powers, resulting in insufficient funds for essential services and infrastructure development. Low levels of tax collection and revenue generation contribute to financial constraints.
• Lack of Autonomy: ULBs frequently lack autonomy in decision-making processes, relying on state governments for financial and administrative support. Dependence on higher authorities can hinder prompt responses to local needs and demands.
• Ambiguity of Functional Domain: Some states witness ambiguity in defining the functional domain of ULBs and parastatal bodies, creating confusion and hindering effective municipal governance.
• Limited Human Resources: Shortages of skilled and qualified personnel within ULBs impact their ability to efficiently execute tasks and deliver services. Insufficient manpower can be a barrier to effective urban governance.
• Poor Infrastructure: Many ULBs face challenges related to inadequate infrastructure, including deficient road networks, water supply systems, and sewage facilities. Insufficient infrastructure hampers the provision of basic services to urban residents.
• Political Interference: Political interference in the functioning of ULBs can compromise their independence and impartiality in decision-making processes. Political considerations may influence administrative and developmental activities.
• Limited Public Participation: ULBs often struggle with a lack of public participation in decision-making, diminishing their effectiveness and accountability. Inadequate citizen engagement can result in policies that do not align with community needs.
• Lack of Capacity: Many ULBs cannot plan, implement, and monitor development projects and programs effectively. Insufficient capacity can lead to inefficiencies and the misallocation of resources.

7. Successful Urban Local Bodies (ULBs) in India

• Ahmedabad Municipal Corporation (AMC) Implemented innovative initiatives to enhance citizens' quality of life.  Ahmedabad Janmarg Limited (AJL) is a successful public-private partnership operating bus rapid transit corridors.
• Pune Municipal Corporation (PMC) Recognized for effective waste management practices.  Implemented door-to-door waste collection, waste segregation, and processing facilities.
• Surat Municipal Corporation (SMC) Successfully used technology to monitor infrastructure projects and manage emergencies. Developed pedestrian-friendly streets, public parks, and other civic amenities.
• Indore Municipal Corporation: Consistently ranked as one of the cleanest cities in India.  Focus on cleanliness, waste management, and sustainable urban development.
• Chandigarh Municipal Corporation: Known for well-planned urban infrastructure and green spaces. Efforts to preserve the architectural heritage of the city.
• Bhubaneswar Municipal Corporation (BMC) Implemented various smart city projects for urban development. Emphasis on improving public services and infrastructure.
• Hyderabad Municipal Corporation focuses on enhancing urban infrastructure and connectivity. Initiatives for the restoration of lakes and water bodies.
• Thiruvananthapuram Municipal Corporation Emphasizes sustainable development and eco-friendly initiatives. Encourages citizen participation in civic activities.

8. What is property tax?

Property tax is a form of direct tax imposed by local governments on the owners of real estate, such as land and buildings. It is a recurring tax that property owners are required to pay, and the amount is typically determined based on the assessed value of the property. The tax collected from property owners is used to fund local public services and infrastructure projects.

Key features of property tax include:

• The local government assesses the value of the property to determine the amount of tax owed. This assessment is often conducted periodically to account for changes in property values.
• Property tax is levied on the owner of the property rather than the occupant. Even if the property is rented out, the owner is responsible for paying the property tax.
• Property tax is a significant source of revenue for local governments, including municipal corporations, municipal councils, and other urban or rural local bodies.
• The revenue generated from property tax is used to finance various public services and community development projects, such as road maintenance, sanitation, education, and other essential municipal services.
• In some jurisdictions, property tax is designed to be progressive, meaning that properties with higher values pay proportionally more in taxes. This is often achieved by applying higher tax rates to properties with higher assessed values.

8.1. Is property tax collected by the central government?

• No, property tax is typically not collected by the central government. Instead, property tax is a local tax, and its collection falls under the jurisdiction of local or municipal governments. In most countries, including India, the United States, and many others, property tax is assessed and collected by local authorities such as municipal corporations, municipal councils, or other urban and rural local bodies.
• Local governments use property tax revenue to fund essential services and local infrastructure projects. The tax amount is generally based on the assessed value of the property, and the rates may vary depending on the local government's policies and regulations.
• While the central government may play a role in setting broad guidelines or frameworks for property taxation, the actual assessment, collection, and utilization of property tax revenue are carried out at the local level. It is a decentralized form of taxation that allows local authorities to have control over their revenue sources and make decisions based on the specific needs of their communities.