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How India’s Small Towns Live (or Die)
Reviewed by Amarinder Sandhu PUSH and pull factors are responsible for the rapid urbanisation taking place in India. It is estimated that within the next two decades, nearly half a billion of the Indian population will be living in urban areas. As unabated migration to the towns continues, the infrastructure of urban areas fails to meet the needs of the growing population. The local governance institutions are responsible for providing the basic facilities and they are in a complete shambles. Basic amenities like water, electricity, education, and healthcare are not available to the citizens. Keeping the small towns at the core, this book highlights the working and the difficult financial situation of municipalities.
There is an intense population pressure on cities and towns. The provision of infrastructure falls in the realm of municipalities, but most of the local governments continue to be sick. The book provides details about the evolution of empowerment provided to urban local bodies. There is a major stress on improving the financial situation of the third tier of the government. The book points towards the 74th Constitutional Amendment that has at its core the functional domain of municipal authorities, but closer analysis indicates that the municipal finance list has been neglected, thus making urban bodies dependent on the states. There is also asymmetry between the states and local governments’ revenue-raising powers. The writer has provided the sources of funding and the functions of urban bodies. Adequate funds are required for the bodies to function properly as they normally have to rely on the state and the Centre. Confusion also arises in the discharging of responsibilities when some of the subjects are drawn from the concurrent list. This is also an exhaustive study of the State Finance Commissions and their role in strengthening the urban local bodies. The major task before any municipal government is its capability to generate funds, but most depend on grants-in-aids from the state government. Own revenue generated by the municipalities is low due to hindrances like poor administration, management and tax collection. The book points towards the weak revenue system of the municipalities and their dependence on revenue grants. Corruption is rampant and establishment expenditure eats away most of the finances. The findings also highlight the successful reforms such as e-governance, computerisation of records, property tax reforms, which have been adopted by urban bodies. Shastri is of the firm belief that the third tier of governance can only grow if there is transparency in its working. Making urban local bodies more people friendly and with active citizen participation, the urban governance can give birth to a new order. How India’s Small Towns
Live (or Die) is a good study
of municipal fiscal issues and highlights the weak working of our uban
bodies. It calls for a rapid transformation in the local
self-government.
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Paromita
Shastri contends that policymakers should stress on the reviving of
moffusil towns which will prevent migration to metros that are already
bulging at their seams with human population. With India going through a
consumer goods revolution and more than half its GDP being derived from
the service sector; small towns lag behind in development and growth. If
basic conditions of living such as water, housing, education and
socio-economic incentives are given small towns can be revived and the
pressure on metros can decrease.