The New Indian Express 22.01.2010
State cool to proposal on ‘unified municipal law
HYDERABAD: The `Unified Municipal Law’ proposed by the Union Government has no takers in the State and the proposal is in the cold storage of the ministry of municipal administration and urban development (MAU D).
Though the government had held a workshop on the subject three years ago, no progress has taken place so far. When Express inquired about it, it is learnt that the subject was not allotted to any section in the ministry. At present, separate laws are governing the municipal corporations and the municipalities in the country. Under the 74th Constitutional Amendment Act the Union Government decided to give more powers to local bodies. State governments implemented the mandatory election provision of the Act but neglected the others. In this situation the Union Government decided to see that the States implemented all the provisions of the Act. It prepared a model for the Unified Municipal Law and has sent it to the states for their follow-up. State governments are supposed to enact the law and implement it. As the Union Government has not set a deadline for the enactment, the States have put the exercise in the cold storage. Though some States have appointed committees to study the model, no attention has been paid to it in Andhra Pradesh. Under the model law, the Union
Government has proposed that there should be one law in the States, laying common rules for all the urban bodies. In the State there are different laws for municipal corporations and municipal councils, i.e. cities and towns.
While the corporations are enjoying more powers and freedom in terms of finances, the municipalities are made to confine to rules and regulations laid by the State Government. The corporations are allowed to borrow from financial corporations and from the market while the municipalities are deprived of the facility and forced to depend on the governments for funds.
This situation is not allowing the municipalities to take up developmental works. A unified law will allow the municipalities to borrow from the market and from the financial institutions. Another important aspect of Unified Municipal Law is establishment of State Municipalities Regulatory Commission. The commission will act as a regulator and control municipalities which impose taxes arbitrarily.
If the Unified Municipal Law comes into force the municipalities will enjoy more powers in determining the taxes, fees and user charges as per their needs. They can raise the income according to the economical strength of the town. Municipalities can balance their expenditure and revenue.
