5.7. Impact of the act on the Urban governance

• Recognition of ULBs as the third tier of governance: In addition to the constitutional recognition of civic bodies as the third tier of governance, the act ensured that the municipal bodies had an independent right to exist. Prior to the enactment, states could either extend the life of ULBs beyond their term or prematurely dissolve them based on political consideration. The act divested state government of this power.

• Wider political representation: In keeping with the spirit of inclusion and equity principles, space has been mandated for the SCs and STs in proportion to their population in the geographical area of the ULB. This has had a salutary effect in terms of political representation and effective participation in all local decision-making.

• Gender Empowerment: The act introduces democratic principle of gender justice. The Act acknowledged that the socio-economic prosperity of the country cannot be achieved if half

the population is bereft of a voice and denied participation in the democratic process.

• Independent Municipal Elections: The local electoral process was also taken out of the state’s purview. An independent State Election Commission, outside the influence of states, ensues transparency and fair play in the process of civic elections. The supervision, direction and control of all elections to the municipalities were vested in this Commission.

• Introduction of ward committees: This laudable innovation takes take local administration as close to the people as possible. A wards committee is an administrative entity for a group of electoral wards to look after the civic affairs of their geographical area. It is a process mandated towards greater decentralisation within a city.

• Reformation of Municipal Financial : State Financial Commission’s report on municipal

finance and its mandatory tabling in the state legislature achieves two objectives:

o First, there is now a compulsory quinquennial review of the state of the fiscal health of ULBs.

o Second, its submission to the legislature ensured that the report would be studied and discussed.