Devolution of Powers to Municipalities

Article 243W provides the constitutional framework through which a State Legislature may empower municipalities to function as institutions of self-government. It permits devolution by state law of powers and responsibilities relating to local planning, municipal functions and implementation of schemes, including matters listed in the Twelfth Schedule.

Constitutional mechanism

Inserted in Part IXA by the 74th Constitutional Amendment Act, 1992, Article 243W enables devolution rather than directly transferring an identical set of functions to every municipality.

• The State Legislature may enact a law specifying the powers, authority and conditions under which municipalities exercise devolved responsibilities.
• Municipalities may be empowered to prepare plans for economic development and social justice.
• They may perform functions and implement schemes entrusted to them, including those concerning the Twelfth Schedule.
• State law may also confer relevant powers and responsibilities on ward committees constituted under Article 243S.

Functional scope

The Twelfth Schedule contains 18 matters that indicate the potential field of municipal responsibility. These include urban planning, regulation of land use and buildings, roads, water supply, public health, sanitation, fire services, slum improvement, urban poverty alleviation and environmental protection.

• The Schedule is a framework for devolution, while the actual assignment of functions depends on the municipal law of each State.
• The extent and conditions of devolution may therefore differ across States and among different types of municipalities.

Fiscal support and practical effect

Functional authority requires corresponding financial capacity. Article 243X permits State Legislatures to authorize municipal taxation, assign revenues, provide grants and establish municipal funds, while Article 243Y requires the State Finance Commission to review municipal finances.

• Article 243W can strengthen local accountability by placing urban services and planning closer to elected municipal bodies.
• Effective self-government ultimately depends on clear assignment of functions, adequate finance and sufficient administrative capacity.

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