NITI Aayog Report: Moving Towards Effective City Government – Framework for Million-Plus Cities

📌 Summary:

• NITI Aayog released report "Moving Towards Effective City Government" — a framework for million-plus cities, released at India Habitat Centre, New Delhi

• Released by Union Urban Affairs Minister Manohar Lal Khattar, attended by Urban Development Ministers from 10+ states

• Core problem identified: fragmented institutions, limited devolution of powers, weak financial autonomy, and diffused accountability hamper urban governance

• 5 Key Recommendations:

  1. Directly elected Mayor with a fixed 5-year term and clear executive authority
  2. Integrate key functions (water supply, sanitation, public transport) under city government
  3. Strengthen municipal finances: own-source revenues, robust State Finance Commissions, municipal bonds access
  4. Institutional restructuring: bring parastatal agencies under city government oversight
  5. States to amend Municipal Acts; MoHUA to update Model Municipal Law

• Phased implementation approach recommended; cities seen as engines of growth toward Viksit Bharat 2047 and $30 trillion economy

🎯 UPSC Relevance: GS2 — Federalism & Local Bodies (74th Constitutional Amendment, Urban Local Bodies). Direct link to 74th CAA devolution concerns, State Finance Commissions, and urban governance reforms.

📝 Prelims Facts:

• 74th Constitutional Amendment Act (1992): gave constitutional status to Urban Local Bodies; 12th Schedule lists 18 functions

• State Finance Commission: constituted every 5 years to recommend financial devolution to ULBs

• Municipal bonds: debt instruments issued by ULBs; Pune Municipal Corporation was first in India (1997)

🔑 Key Term: Elected Mayor Model — directly elected, accountable mayor with fixed tenure and executive powers; contrasts with current council-committee system where mayor is often a ceremonial figure.