CAG Report on Urban Local Bodies:
The Comptroller and Auditor General (CAG) of India highlighted critical gaps in the functioning of Urban Local Bodies (ULBs) across 18 states, 31 years after the 74th Constitutional Amendment was introduced to empower these self-governing institutions.
Data on Urban Local Bodies:
- ULBs face a 42% gap between their resources and expenditures.
- Only 32% of revenue comes from own resources; 68% is dependent on Union and state government transfers.
- ULBs realize only 56% of property tax demands.
- Only 29% of ULB expenditure is spent on programmatic and developmental work.
- Average vacancy rate: 37% of sanctioned strength.
- Urban bodies in 16 states have limited or no autonomy over recruitment.
- On average, 17 out of 18 functions (as per the 74th Amendment) are devolved.
- Nine states (e.g., Chhattisgarh, Maharashtra) devolved all 18 functions.
- Urban planning and fire services remain the least devolved functions.
