“Owing to the 74th Constitutional Amendment Act, 1992, municipalities are functioning as effective institutions of local self-governance at the grassroots level”. Comment.

The constitution 74th Amendment Act 1992, relating to Municipalities (Urban local Government) was passed by the parliament in 1992. ... The Act seeks to provide a common framework for the structure and mandate of urban local bodies to enable them to function as effective democratic units of local Self Government.

The 73rd Amendment Act aims to provide three tier system in the Local Self Government constituted through elections held regularly every five years. The Act also provides reservation of seats for Scheduled Castes, Scheduled Tribes and Women. Moreover, the Act provides for a State Finance Commission to make recommendations regarding the financial powers of the Panchayats and to constitute District Planning Committee to prepare draft development plan for the district. Provision has also been made to constitute a State Election Commission in every state to supervise, direct and control the regular and smooth elections to Panchayat bodies. The 74th Constitutional Amendment Act, 1992, proposes to constitute a uniform structure of Municipal Corporations, Municipal Councils and Nagar Panchayats in transitional areas. This Act granted the Urban Local Government a constitutional status. Presently, the Urban Local Government has three categories-(a) Nagar Panchayat for a transitional area, i.e., an area in transition from a rural to an urban area, (b) Municipal Council for smaller urban area and (c) Municipal Corporation for a large urban area. An area is designated as ‘a transitional area’ or a smaller urban area’ or ‘a larger urban area’ on the basis of size and density of population of that area, the revenue generated __________ ______ ____ __________ ________ ________ ___ __________.
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