The Constitution (74th Amendment )Act, 1992 have added new Parts IX and IXA to the Constitution. Under these two parts, we have as many as 34 new Articles-243 to 243ZG and two new Schedules viz. Schedule 11 and 12. The 74th Amendment gives constitutional recognition to the Municipalities or the provisions relating to Urban Local Government (Nagarpalikas).
It came into force in 1993.
The census of India defines an urban area as having: a minimum population of 5000. (2) Atleast 75% of male working population engaged in non-agricultural occupations, (3) a density of population of at least 400 persons per sq. km.
The Provisions made under this Act are :
Three Tier Structure: All states now have a uniform Municipality system.
Elections: Elections were made mandatory for all the posts of the third tier of local government. They are elected directly by the people for a term of five years.
Reservations: Reservations are made for women at all the levels of Nagarpalikas. Reservations for Scheduled Castes and Scheduled Tribes are also provided for all the three levels, in proportion to their population. If the States find it necessary, they can also provide for reservations for the other Backward Castes (OBCs).
Transfer of Subjects: Twenty-nine subjects, which were earlier in State List of subjects, are identified and listed in the Eleventh Schedule of the Constitution. These subjects are to be transferred to the Local Governments. These subjects are mostly linked to the development and welfare functions at the local level. The actual transfer of these functions depends upon the State Legislation. Each state decides how many of these 29 subjects would be transferred to the local bodies.
State Election Commissioners: The state government is required to appoint a State Election Commissioner who would be responsible for conducting elections. He is an independent officer and is not linked to nor is this officer under the control of the Election Commission of India.
State Finance Commission: The State. government is also required to appoint a State Finance Commission once in five years. This commission would examine the financial position of the local governments in the State. It would also review the distribution of revenues between the state and local governments on the one hand and between the rural and urban local governments on the other.
