NEW MODEL MUNICIPAL LAW TO MAKE URBAN
LOCAL BODIES MORE EFFECTIVE, RESPONSIVE AND SELF SUFFICIENT
The Ministry of Urban
Development and Poverty Alleviation has developed a Model Municipal
Law to assist urban local bodies in the areas of accounting reforms,
resource mobilization and entry of private sector. The Model Municipal
Law inter-alia aims at simplification of municipal bylaws, provision
for enhanced borrowing, allowing the entry of private sector and
authorizing concessionaires to penalize users for non-payment
of tariffs.
This initiative
of the Ministry as part of urban reform is expected not only to
enhance the capacities of Urban Local Bodies to leverage public
funds for development of urban sector but also will help in creating
an environment in which urban local bodies can play their role
more effectively and ensure better service-delivery.
It may be noted
that consequent upon the enactment of the Constitution (74th
Amendment) Act by the Parliament in 1992 to make the local self-government
more effective and responsive to the needs of the people, state
governments have amended their municipal laws to conform to this
Act. However, the amended municipal laws have only addressed the
basic provisions of the 74th Amendment Act and other
reforms still required to be addressed are power, authority and
responsibilities of urban local bodies. Specific action is now
needed for a new framework that lets Urban Local Bodies to generate
adequate local revenue, improve financial management and involve
private sector in delivery and improving of the basic services.
Already the Ministry
of Urban Development and Poverty Alleviation, has taken several
initiatives towards good urban governance and making urban local
bodies self-sustaining viable entities of local self-government.
Urban sector reforms have been identified as thrust areas by the
Ministry and tools such as City Challenge Fund, Pooled, Finance
Development Fund, Urban Reforms Incentive Fund have been conceived,
Private Sector Participation guidelines have been framed and switching
over to accrual-based accounting have been emphasized. A workshop
is being organized shortly to give impetus to the implementation
process of the Model Municipal Law at the state levels.
