NITI Aayog unveiled a report aimed at tackling urban challenges like fragmented institutional setups and limited powers in cities. The report stresses the need to enhance urban governance to boost city efficiency. It was released by Union Minister Manohar Lal Khattar in the presence of Urban Development Ministers from over 10 states, signaling broad support for urban governance reforms.
India’s urbanization plays a crucial role in realizing the vision of Viksit Bharat by 2047 and advancing towards a $30 trillion economy. Cities are pivotal in driving economic growth, innovation, and job creation. The report, titled “Moving Towards Effective City Government – A Framework for Million-plus Cities,” identifies governance issues hindering urban performance, including weak leadership structures and fiscal constraints.
The report proposes empowering city governments by redefining authority, responsibility, and resources at the city level. This transformation is vital for cities to function as growth engines and efficient service providers. Key recommendations include introducing a directly elected Mayor with a fixed tenure and enhancing municipal finances through various means like municipal bonds and robust fiscal transfers.
To ensure effective implementation, the report suggests states amend their Municipal Acts to align with the proposed reforms. It also calls for updating the Model Municipal Law by the Ministry of Housing and Urban Affairs to guide and incentivize reform adoption. Rajiv Gauba, a Member of NITI Aayog, highlighted that the report was the result of thorough analysis, global best practices study, and expert consultations.
