Grassroots Democracy - 2 | PSIR Optional for UPSC (Notes) PDF Download

Urban Local Self-Government: Historical Background

The origin of urban local self-government in India can be traced back to Samuel Laing, a member of the Viceroy's Council, who proposed that local services should rely on local resources. The concept of elected representatives in municipalities was introduced by Lord Mayo's Resolution in 1870. While local government in rural areas is called panchayats, local government in towns and cities is referred to as Municipal Government. Local governing institutions in cities were established almost two centuries before their rural counterparts.

Municipal bodies in Indian cities were established by the British. Until the passage of the 74th Amendment, there were five types of urban governments: Municipal Corporations, Municipal Councils, Town Area Committees, Notified Area Committees, and Cantonment Boards. The first Municipal Corporation was established in Madras in 1687, followed by Bombay and Calcutta in 1762. The introduction of an elected president in municipalities was encouraged by Lord Mayo's Resolution of 1870. The present form and structure of local governance institutions are largely due to Lord Ripon's resolution on local self-government, adopted on May 18, 1882. By 1870, there were about 200 municipalities in British India.

The Post - 74th Constitutional Amendment (1992): Urban Local Self-government Bodies

• The 74th Constitutional Amendment Act, passed in 1992, aimed to make urban governance institutions in India more representative, accountable, efficient, and transparent. This act replaced the existing five types of urban governance bodies with three: Nagar Panchayats for areas transitioning from rural to urban; Municipal Councils in smaller urban settlements; and Municipal Corporations in larger urban areas. The type of urban body to be introduced in a city is determined by the state government.
• Municipal bodies consist of elected representatives from electoral wards, members of the Lok Sabha and State Legislative assemblies, members of the council of states and state legislative council registered as voters within the municipal area, chairpersons of the committees of the municipal authorities, and persons with special knowledge or experience in municipal administration. Seats in municipal bodies are reserved for weaker sections of society, such as OBCs, SCs, and women, with 33% reserved for women.
• Municipalities have a tenure of five years and have the right to be heard if they are dissolved or superseded. Elections must be held within six months of dissolution or supersession. The 74th amendment outlines 18 areas of responsibility for urban local bodies, including urban planning, social development, public health, environmental protection, poverty alleviation, and public amenities.
• State governments have discretion regarding taxes, duties, tolls, and fees levied by municipal bodies, as well as grant-in-aid allocations. They are also required to appoint a finance commission every five years to provide recommendations on sharing state revenue between the state government and municipalities.
• The 74th Amendment Act also introduced the direct election of the Mayor from the municipal area for a period of five years. A motion of no confidence against the Mayor cannot be moved within two years of their entering office or if the remaining period of the corporation is less than six months.
• Municipal Corporations can deal directly with the state government, while Municipalities are answerable to the District Collector and Divisional Commissioner. The General Body of the Municipal Corporation consists of councilors, who are elected or nominated for a term of three to five years. They may have specialized knowledge in municipal functions.
• There are both statutory and non-statutory committees within the municipal government, such as executive, standing, planning, health, and education committees. The Standing committee is the most important, acting as the steering committee with executive, supervisory, financial, and personnel power.
• The powers and functions of Municipal Council Committees are similar to those of Municipal Corporations. Cantonments, or predominantly military-occupied areas, have their own form of urban government called the Cantonment Board, constituted under the Cantonments Act of 1924.
• Local bodies are responsible for the efficiency of programs and services, raising local resources, and providing meaningful planning and services at the local level. Their functions, duties, and responsibilities are both obligatory and discretionary, covering areas such as public health, education, street maintenance, and housing for low-income groups.

The Municipal Finance

Municipal finance falls within the discretion of respective state governments, and there is no separate list of taxes for municipal bodies. Numerous bodies, such as the Local Finance Inquiry Committee (1951) and Taxation Inquiry Commission (1953-1954), have been established over time to examine municipal finance issues. Municipal revenues are primarily of the following types:

1. Tax revenue
2. Octroi
3. Non-tax revenue
4. Grants-in-aid
5. Borrowings or loans

Tax Revenue: Urban local governments levy various major taxes, including:

• Property tax, which may also include service levies for water supply, conservancy, drainage, lighting, and garbage disposal
• Professional tax
• Tax on vehicles (except motor vehicles)

Municipal Corporations generally have broader taxation powers and are empowered to impose or increase taxes within the limits established by State Acts. For example, property tax is usually the largest single source of revenue for municipal bodies in states where there is no provision for octroi. Property tax is levied on buildings and land based on rental value.

• Octroi: Octroi is a tax on goods entering a local area for consumption or sale and is a traditional and significant source of local revenue. It accounts for approximately 60 to 80% of total revenue for urban local bodies where it is imposed.
• Non-Tax Revenue: Municipal Acts allow for the issuance of licenses, and local authorities can charge and collect fees both for regulatory purposes (such as issuing licenses) and for providing services. User fees may be charged for public utilities, parking, entry to playgrounds, swimming pools, and so on.
• Grants-in-Aid: Grants-in-aid are an essential component of municipal finance. They can be classified as General-Purpose Grants (GPG) or Specific Purpose Grants (SPG). GPGs supplement local bodies' revenue for carrying out their regular functions, while SPGs are used for specific purposes, such as increasing wage bills due to inflation, education grants, public health, and road maintenance. Grants are typically ad-hoc and discretionary in nature.
• Borrowings and Loans: Municipal bodies can borrow from state governments and other agencies under the Local Authorities Loans Act (1914). They can borrow for development activities and debt repayment. Such borrowings can be used for purposes such as construction, provision of relief during scarcity or famine, management of epidemics, land acquisition, and repayment of outstanding loans.

With the addition of eighteen functions in the Twelfth Schedule following the 74th Amendment, the functional responsibilities of municipalities have increased. They now participate in the preparation of local development plans and the implementation of development projects, in addition to providing civic amenities. As a result, they require increased financial allocations.

Grassroot Movements

Grassroot Movements in India: An Overview

1. Emergence and Significance: Grassroot movements, also known as micro movements, have gained momentum in India since the 1970s. These movements represent the struggles of economically marginalized and socially excluded sections of society. The emergence of micro movements can be attributed to the dissatisfaction with representational politics and institutional decline, as pointed out by Rajni Kothari.
2. Impact of Globalization: According to Smitu Kothari, globalization has contributed to the revival of grassroot movements worldwide due to its destructive forces on development. Globalization has also led to the rise of movements for peace, human rights, and anti-corruption initiatives.
3. Reasons for Growth: Amrita Basu suggests that the growth of grassroot movements in India is due to the capitalist model of development and the availability of democratic space. The decline of political parties and their detachment from the movement aspect of politics has further contributed to the rise of micro movements led by the educated middle class.
4. Contributions of Grassroot Movements: Ranjitha Mohanty highlights several tasks served by grassroot movements in India:
   • Replacing the exclusionary narrative of state-led development with a counter-narrative of inclusion.
   • Expanding non-party political spaces for social actions, thereby democratizing public space.
   • Renegotiating people's relationship with the state.
   • Providing a platform for the reconstruction of modernity through the discourse of citizenship and rights.
5. Examples of Grassroot Movements: Some examples of micro movements in India include the protests against the Nanar oil refinery in Ratnagiri, Maharashtra, and the protests against Vedanta in Tamil Nadu. These movements often act as countervailing forces against global political and economic power.

Grassroot movements in India have emerged as a response to the dissatisfaction with representational politics, the impact of globalization, and the decline of political parties. These movements have played an essential role in promoting inclusion, expanding democratic spaces, and renegotiating the relationship between citizens and the state.

Conclusion

In conclusion, the historical background of urban local self-government in India can be traced back to the British colonial era, with significant reforms being introduced through the 74th Constitutional Amendment Act in 1992. This amendment aimed to make urban governance institutions more representative, accountable, efficient, and transparent. Municipal finance, which is essential for the functioning of these institutions, relies on various sources of revenue, including taxation, octroi, non-tax revenue, grants-in-aid, and borrowings. In parallel, grassroots movements have gained momentum in India since the 1970s, emerging as a response to dissatisfaction with representational politics, the impact of globalization, and the decline of political parties. These movements have played a crucial role in promoting inclusion, expanding democratic spaces, and renegotiating the relationship between citizens and the state. As India continues to evolve and face new challenges in governance and development, both urban local self-government institutions and grassroots movements will remain vital players in shaping the country's socio-political landscape.

Frequently Asked Questions (FAQs) of Grassroots Democracy

What is the origin of urban local self-government in India?

The origin of urban local self-government in India can be traced back to Samuel Laing, a member of the Viceroy's Council, who proposed that local services should rely on local resources. The concept of elected representatives in municipalities was introduced by Lord Mayo's Resolution in 1870.

What are the three types of urban local government bodies introduced by the 74th Constitutional Amendment Act?

The 74th Constitutional Amendment Act introduced three types of urban local government bodies: Nagar Panchayats for areas transitioning from rural to urban, Municipal Councils in smaller urban settlements, and Municipal Corporations in larger urban areas.

What are some of the main sources of municipal finance in India?

Municipal finance in India primarily comes from tax revenue, octroi, non-tax revenue, grants-in-aid, and borrowings or loans. Major taxes include property tax, professional tax, and tax on vehicles (except motor vehicles).

What is the significance of grassroots movements in India?

Grassroots movements in India have gained momentum since the 1970s, representing the struggles of economically marginalized and socially excluded sections of society. They have played an essential role in promoting inclusion, expanding democratic spaces, and renegotiating the relationship between citizens and the state.

How has globalization impacted grassroots movements in India?

Globalization has contributed to the revival of grassroots movements worldwide due to its destructive forces on development. It has also led to the rise of movements for peace, human rights, and anti-corruption initiatives.