Himachal: Successive governments failed to empower ULBs, reveals CAG report

The successive governments failed to empower the urban local bodies (ULBs) as amendments carried out in state statutes in compliance with the 74th Constitution Amendment Act but were not supported by firm action to let the civic bodies discharge their functions freely and effectively, a Comptroller and Auditor General (CAG) report has revealed.

This report, tabled in the state assembly, contains significant results of the performance audit conducted to ascertain the “Efficacy of Implementation of 74th Constitution Amendment Act, 1992” covering the period from April 2015 to March 2020.

The Constitution (74th Amendment) Act, 1992 gives Constitutional recognition to the ULBs for decentralising urban governance along with the Constitutional right to exist.

The Act also authorised the state government to enact laws to empower ULBs with powers and authority as may be necessary to enable them to function as institutions of self-government to transfer various responsibilities to municipalities and to strengthen municipal-level governance.

The overall objective of this performance audit was to ascertain whether ULBs have indeed been empowered in terms of funds, functions and functionaries to establish themselves as effective institutions of local self-government and whether the 74th CAA has been effectively implemented in the state, states the report.

The main objectives of the performance audit were to assess adequacy in coverage of provisions of the 74th CAA in the state legislation.

The report points out that the state statutes complied with the provisions of the 74th CAA. However, compliance with the constitutional provisions by law does not guarantee effective decentralisation on the ground, unless followed by effective implementation of functions enlisted in the 12th Schedule of the Constitution.

“The legal provisions were not backed by decisions and actions. This was especially true in case of provisions pertaining to the devolution of functions,” the report states.

“Though the state government carried out amendments in the state statutes to comply with the provisions of 74th CAA, these amendments were not supported by firm action in terms of empowerment of ULBs to discharge their functions freely and effectively. This defeated the spirit of the Constitutional amendment, as is evident from the inconsistencies noticed during the course of the performance audit,” it added.

In Himachal Pradesh out of 18 functions, one function was not devolved to ULBs. In the case of the remaining 17 functions, ULBs were solely responsible for five functions; were mere implementing agencies for four functions; had limited roles with overlapping jurisdiction of state departments for six functions; and had no role for two functions.

It also points out that the state government had overriding powers over the urban local bodies in relation to various matters like the power to frame rules; power to cancel and suspend a resolution or decision taken by ULB; power to dissolve ULBs; cancellation of bye-laws; sanction to borrow money; and power in regard to taxes, budget estimates etc.

The CAG report also states that ULBs were having minimal control over human resources and the number of employees as per requirements was inadequate.