Staff shortage, financial dependency plague local governance

Context

An Annual Survey of India’s City-Systems (ASICS) 2023 of Indian cities shows that a majority of local governments are financially dependent on their State governments.

About the survey -

The report, Annual Survey of India’s City-Systems (ASICS) 2023, was published by the Janaagraha Centre for Citizenship and Democracy, a non-profit institution.
The Survey has highlighted various limitations and challenges faced by Indian cities in terms of financial autonomy, governance structures, and transparency.

Key Highlights –

Asymmetry of power across four city categories — megacities (>4 million (mn) population), large cities (1-4 mn), medium cities (0.5 mn-1 mn), small cities (<0.5 mn).
- It shows that while megacities have more say over their finances, their mayors do not have a five-year tenure and are not directly elected.
- On the other hand, more mayors in smaller cities have a five-year tenure and are directly elected, but lack a say on the city’s finances.
The report also shows that mayors and councils have limited power in staff appointments and promotions.
Cities especially lack control over their senior management teams who are deputed directly by State governments, which makes it tough to initiate disciplinary proceedings against them if needed.
The report also mentions the lack of transparency in publishing cities’ civic information which citizens can access easily.
- Only 11 of the 35 States/Union Territories have enacted the Public Disclosure Law that mandates publishing of key civic data.
Due to poor control over appointment of staff, the local governments suffer from high levels of unfilled posts.
- Data show that 35% of posts in India’s municipal corporations are vacant.
- The vacancy progressively worsens with 41% posts being vacant among municipalities and 58% being vacant in town panchayats.
A comparison with other metropolises such as New York, London and Johannesburg shows that such a crippling shortage of staff is limited to Indian cities.
Data shows the number of city staff per one lakh population.
- There are 5,906 city workers in New York and 2,936 in London for every one lakh population compared to just 317 in Bengaluru, 586 in Hyderabad, and 938 in Mumbai.
- Cities such as New York also been empowered to impose taxes, approve their own budget, invest and borrow without approval.

Impacts of limitations and challenges faced by Indian cities -

Service Delivery: Limited financial autonomy hampers local bodies' ability to allocate funds effectively for essential services, hindering infrastructure development, healthcare, education, and other civic amenities.
Accountability and Corruption: Lack of transparency may lead to corruption and misuse of funds, eroding public trust and reducing accountability in local governance.
Citizen Participation: Weak governance structures can restrict citizen involvement in decision-making processes, impeding the representation and consideration of local community needs and concerns.
Economic Development: Insufficient financial autonomy constrains the ability to invest in local economic development, thereby limiting job creation and overall growth.
Service Quality: Weak governance structures and financial constraints could result in substandard service quality and inefficient resource utilization, impacting citizens' quality of life.
Efficiency and Effectiveness: Transparency issues in governance might limit the efficacy of local bodies in executing projects, leading to delays, cost overruns, and inefficiencies.
Sustainable Development: Financial limitations may hinder investments in sustainable development projects, impeding the adoption of eco-friendly initiatives and smart city practices.