“Moving Towards Effective City Government – A Framework for Million-Plus Cities” Report

Syllabus: GS1/Urbanisation

Context

• The Union Minister of Housing & Urban Affairs, released the report “Moving Towards Effective City Government – A Framework for Million-plus Cities” by NITI Aayog.

About

• India’s urbanisation is central to achieving the vision of Viksit Bharat by 2047 and progressing towards a $30 trillion economy. 
  • Cities are central to driving economic growth, fostering innovation, and generating employment. 
• The report identifies persistent governance issues, including weak and fragmented leadership structures, constrained fiscal capacity, and capacity gaps that limit service delivery and urban performance. 
• It calls for a shift towards empowered city governments through a clear realignment of authority, responsibility, and resources at the city level. 

Key recommendations of the report include:

• Strengthening city leadership through the introduction of a directly elected Mayor with a fixed tenure, supported by an empowered Mayor-in-Council system to ensure continuity, clarity, and accountability in decision-making.
• Integrating urban service delivery by bringing key functions such as water supply, sanitation, and public transport under the purview of city governments to improve coordination and accountability.
• Enhancing municipal finances by strengthening own-source revenues, ensuring more predictable and timely fiscal transfers through robust State Finance Commissions, and enabling access to market-based financing mechanisms such as municipal bonds.
• Undertaking institutional restructuring by bringing multiple parastatal agencies involved in service delivery under city government oversight, with clearly defined roles and stronger coordination frameworks.
• For effective implementation, the report recommends that states amend their Municipal Acts to reflect these governance reforms.
  • It also calls on the Ministry of Housing and Urban Affairs to update the Model Municipal Law and provide guidance and incentives to support reform adoption.

Conclusion

• The report offers a comprehensive roadmap for strengthening urban governance in India, recognising that the country’s next phase of growth will be driven by economically vibrant, well-governed, and liveable cities. 
• Strengthening city governments is not only an administrative priority but a strategic imperative for achieving national development goals.

Source: PIB