CAG report finds state government overriding power of ULBs

RAIPUR: The Comptroller and Auditor General (CAG) of India tabled a report in the state Assembly on Tuesday which noted that the state government had been overriding powers of the Urban Local Bodies. The 74^th Constitutional Amendment Act (CAA) was brought about to infuse local bodies with more power, so as to effectively create a third tier of governance at the local level.

The CAG report was tabled after a performance audit on the implementation of the 74^th CAA for the fiscal year ending March 2020. It also noted that the emergence of smart cities has confined the space available to urban local bodies (ULBs). According to the report, ward and mohalla committees by the state have not been constituted in any of the 27 ULBs inspected for the report, the only exception being Korba Municipal Corporation.

The State Acts/Rules have satisfied all conditions set forth in the 74th CAA regarding the inclusion of codal provisions in the State Acts/Rules, with the exception of the creation of the committee for Metropolitan Planning. The audit report found that the 74th CAA’s spirit was violated since the legal provisions were not supported by timely response. Additionally, it was noted that the State Government had authority over ULBs in a way that went against the letter of the Constitutional Amendment. The audit discovered that only eight of the 18 functions (prescribed in the 12th schedule) were the sole responsibility of ULBs. These ULBs served no purpose in one function, had dual purposes in six functions and were merely implementing agencies in two functions.

The state cannot strengthen local self-governments without total devolution of functions. Regular District Planning Committee meetings were not held, and no consolidated District Development Plans for the District as a whole were created by taking into account regional needs and topics of shared interest. The CAG noted that delays in the setting up of state finance commissions’, as well as in the submission of their recommendation findings and the execution or devolution of money, had a negative impact on the ULBs’ financial standing. Even though the fifth commission’s formation was due, funds are being disbursed in accordance with the Second State Finance Commission, it was said.