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BPAC-111: Public Finance and Administration

BPAC-111: Public Finance and Administration

IGNOU Solved Assignment Solution for 2022

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Assignment Solution

Assignment Code: BPAC-110/ASST /TMA / 2021-22

Course Code: BPAC-110

Assignment Name: Urban Local Governance

Year: 2021-2022

Verification Status: Verified by Professor



Assignment A



Answer the following in about 500 words each.


Q1. What are the major issues and challenges in urban areas? 20 marks

Ans) Urbanisation has an impact on socioeconomic development, the environment, and quality of life. As a result, the gap between demand and supply for land, housing, and basic services has widened. The provision of essential services such as drinking water, sanitation, and health care to the urban population, particularly the urban poor, has remained a major issue.


Problem of Access to Water Supply and Safe Drinking Water

In India, the economically developed states of Andhra Pradesh, Gujarat, Maharashtra, Punjab, and Karnataka have more coverage and simple access to drinking water. The percentage of urban households with access to tap water has increased from 68.7% in 2001 to 70.6 percent now (2011).

Furthermore, the provision of drinking water in cities is insufficient. As a result, it may be assumed that the costs of water treatment and reuse will skyrocket, and that the future population will be unable to be accommodated without a significant increase in the supply of clean drinking water.


Problem of Access to Sanitation

In 2011, 7.1% of urban Indian households had pit latrines while 72.6 percent of urban Indian households had water closets. As a result, 18.6 percent of urban families lacked sufficient latrine facilities on their grounds. Sixty-six percent of households in slum areas had latrines on their property.


Problem of Solid and Liquid Waste Management

Health issues arise as a result of wastewater spilling into open drainage systems and into water bodies. According to the Census of India 2011, the percentage of houses with closed drainage and open drainage in urban areas was 44.5 percent and 37.3 percent, respectively, at the national level. The remaining 18.2 percent of houses lacked any sort of drainage system. As a result, substantial work needs to be done in order to provide a facility for everybody to sustain urban development and public health.


Problem of Poverty

Poverty is a multi-dimensional issue that refers to a lack of income or resources. Housing, water, sanitation, health, education, social security, livelihoods, and the unique needs of vulnerable populations such as women, children, and senior citizens are all affected. It takes the shape of reduced opportunities for hunger and malnutrition among the urban poor, as well as social prejudice and the incapacity to participate in decision-making processes. Poverty eradication remains one of the government's most difficult tasks. In metropolitan regions, there is not only an issue of acute deprivation of wellbeing and possibilities, but also a challenge of survival.


Problem of Access to Health Care

One of the most important trends is urbanisation, which has a substantial impact on health, which is a key indication of human development. In certain locations, the health of the urban poor is much worse than that of the rural poor. Because citizens' health and well-being are the city's most valuable asset, they continue to suffer from insufficient housing and transportation, poor sanitation and waste management, poor air quality and pollution - noise, water and soil contamination, and a lack of space for active living, which makes cities epicentres of non-communicable diseases, epidemics, and climate change drivers.


In light of the foregoing, it is critical to guarantee that the benefits of urbanisation are widely distributed and inclusive. Even in metropolitan regions, there is an urgent need to ensure simple access to infrastructure and social services for all, with a particular focus on the requirements of the urban poor and other vulnerable groups for housing, education, health care, decent work, and a safe environment.



Q2. Discuss the impact of 74th Constitutional Amendment on interface between the State and Local Government. 20 marks

Ans) The Constitution (Seventy-Fourth) Amendment Act, 1992 / 74thConstitutional Amendment Act, 1992 came into force on 1st June 1993. Time period of one year was given to the State Governments to bring about necessary changes in their existing laws so as to ensure conformity with the provisions of 74th Constitutional Amendment Act. The State Municipal laws have been amended to incorporate various provisions with regard to constitution and composition of municipalities; tenure of 5 years (fixed term); re-election within 6 months in case of dissolution; administrative and financial functions and powers; setting up of State Finance Commission, State Election Commission, District Planning Committee, Metropolitan Planning Committee.


The basic objective of the Model Municipal law (MML) was to implement the provisions of the 74th Constitutional Amendment Act (CAA) in totality for empowerment of the Urban Local Bodies (ULBs) and provide the legislative framework for implementation of the Ministry’s Urban Sector Reform Agenda. This initiative was expected not only to enhance the capacities of the ULBs to leverage public funds for development of urban sector but also in creating an environment in which ULBs can play their role more effectively and ensure better service delivery. Similarly, NMAM and SWMR tend to facilitate accounting, budgeting and asset and waste management. Later, the Ministry of Housing and Urban Affairs, Government of India enacted Rental Law but the same needs to be adapted by the State governments for implementation.


The 74th Constitutional Amendment Act, 1992 laid the foundation of multi-stakeholders’ participation in urban and regional planning. People or community participation need to be involved at all the stages like identifying problems and needs, assessing the resources available and finally projecting and prioritising the proposals. Community participation involves residents’ welfare associations, community-based organisations, social workers, etc. With community participation at all stages of planning, the plan gets finalised with less resistance from public; and people develop a sense of pride in the plan of their city as its the plan prepared by them and they tend to abide by its regulations. In India, stakeholder’s participation has improved from awareness to perception and decision-making.


The 74th Constitutional Amendment has brought about substantial change in the manner in which citizens, governance and devolution of powers is to be conducted. It has aimed at bringing uniformity among the ULBs, strengthening the base of the administration through local people representation and participation, conduct of free and fair elections, devolution of power and financial resources and transfer of functions. The 74thCAA entrusts to the state the flexibility of defining scope and ambit of Municipalities through Conformity Legislations but the objectives can be achieved only through strong political will of the State Authorities to share and extend necessary administrative and financial powers and authority to serve as the autonomous unit of local self-government.



Assignment B



Answer the following questions in about 250 words each.


Q3. What are the economic benefits of urbanisation? 10 marks

Ans) The economic role of the urbanisation can be summarised under the following heads:

  1. Economies of Agglomeration: A self-contained universe, cities tend to create a high percentage of demand due to their ability to accommodate diverse services, goods, demographics, and specialism. This leads to high economic activity and high GDP levels in the phenomena of urbanisation.

  2. Employment Generation: Cities have historically been seen as hubs of employment, progress, and poverty reduction. Rural residents are moving to cities in search of better jobs. Cities are seen as employment generators and potential labour markets. As demand for various products grows, so does the number and size of production units, necessitating additional labour/personnel. Agglomeration economies and scale advantages create new jobs.

  3. Synergic Effect of City Clusters: Cluster cities form due to the creation of goods and services, both cheap and high quality. Markets are built on demand, need, and product kind. Instead, cities are rated. Industry clustering is similar to city clustering in that it maximises competition and productivity by establishing horizontal and vertical links among industries that produce inputs or sell services.


  4. Higher Productivity of Cities leads to Higher National Development: Because cities host a large amount of the country's people, their productivity is directly related to national development. Cities generate more GDP than rural areas, in both developed and developing countries.

  5. Variation in Growth in between Cities: As economic growth is directly proportional to population growth, the cities with favourable location, climate, resources, better administration and governance, suitable infrastructure and swift mobility of trade and transport tend to attract more populace than others.

  6. Mobilisation and Utilisation of Resources: Resource mobilisation is another benefit of urban growth and development. An urbanised area's common trait is the increased demand for diverse resources required for higher production. Compared to rural areas and smaller cities, fully urbanised areas or larger cities contribute significantly. Overall production is thus dependent on resource availability.

  7. Cities as a Tool of Poverty Reduction Mechanism: Cities' role in reducing poverty has grown in prominence. Cities battle poverty better than rural areas. Cities' rapid expansion is good for poverty reduction because economic growth is linked to it.

  8. Urban Competitiveness: Opening local economies to global marketplaces creates national and global rivalry. A high level of economic development is recognised as a result of improved productivity, more capital intensity, higher levels of human capital, and most significantly higher levels of infrastructure.



Q4. Write a note on the National Urban Policy Framework, 2018. 10 marks

Ans) National Urban Policy Framework (NUPF) outlines an integrated and coherent approach towards the future of urban planning in India. The NUPF is structured along two lines. Firstly, at the NUPF’s core lie ten sutras or philosophical principles. Secondly, the ten sutras are applied to ten functional areas of urban space and management. Within each functional area, the status quo and its challenges are analysed, key priorities formulated, and specific possible actions points suggested.


The NUPF stands on ten sutras or guiding principles:

  1. Cities are clusters of human capital;

  2. Cities require a ‘sense of place’;

  3. Not static Master Plans but evolving ecosystems;

  4. Build for density;

  5. Public spaces that encourage social interactions;

  6. Multi-modal public transport backbone;

  7. Environmental sustainability;

  8. Financially self-reliant;

  9. Cities require clear unified leadership; and

  10. Cities as engines of regional growth.


The NUPF acknowledges that urban development is a state issue. Based on this framework, the States must design their own State Urban Policies and Implementation Plans. It is not a detailed top-down guide of cities. By moving away from top-down central planning, the Center will directly support the creation and implementation of state urban policies. It rethinks Indian cities, with employment creation as a primary priority in urbanisation planning.


NUPF does not expect cities to adopt the new approach overnight. Removing existing codes and master plans may not be prudent due to the governance vacuum. It will take many years for the new organic, decentralised structure to replace the old mid-20th century “modernism”. Nonetheless, by defining explicit principles, the new approach should progressively permeate urban planning and administration across India. In the HRIDAY and Smart City missions, cities were asked to build a bottom-up vision for themselves. We will finally be able to solve India's urban problems once urban residents and municipal managers become adapted to contextual thinking.



Q5. Distinguish between the District Planning Committee and Metropolitan Committee.10 marks

Ans) Committee for District Planning

Municipalities have the capacity to establish and implement plans for economic development, social justice, and various schemes within their territories. However, keep in mind that municipalities exclusively manage urban regions, while districts are the basic administrative entity that includes rural areas. A comprehensive planning mechanism is required to bring together different governing bodies such as Panchayats, Raj Institutions, and Municipalities. It is required for efficient resource allocation and prudent resource investment. Article 243ZD of the Act provides for the establishment of a District Planning Committee to consolidate the plans of PRIs and Municipalities and ensure the general development of the district. It is mandated that four-fifths of its members be directly elected members of PRIs and Municipalities, with proportional representation of rural and urban populations.


District Planning Committee is to prepare the plans giving due regard to:

  1. The extent and type of available financial and other resources are shared by panchayats and municipalities.

  2. Draft plans are to be forwarded by the Chairperson of the Committee to the State Government.


Committee for Metropolitan Planning

Article 243ZE provides for the establishment of a Metropolitan Planning Committee for areas having a population of 10 lakhs or more. The goal is to create a unified and comprehensive strategy for the entire Metropolitan area. It is required that two-thirds of its members be directly elected municipal members or elected Panchayat chairpersons from the Metropolitan region, with proportional representation of rural and urban populations. To facilitate better planning, close cooperation, and coordination between Union, State, and Local government, various Union and State level Committees, organisations, and institutions may be represented as needed.


Metropolitan Planning Committee is to prepare the draft plans giving due regard to:

The extent and nature of investments likely to be made by the Union and State governments, and the type of available financial and other resources. The draught plan must take into account the overall objectives and priorities set by the Union and the States.



Assignment C



Answer the following questions in about 100 words each.


Q6. What are the major powers of a State Election Commission? 6 marks

Ans) The Election Commission has the power of a Civil Court for an inquiry, in the following matters:

  1. Summon and enforces the attendance of any person.

  2. Requires the discovery and production of documents or other material object producible as evidence.

  3. Requisitions of public record or a copy thereof from any court or office.

  4. Receives evidence on affidavits.

  5. Issues orders for the examination of witness or documents.


In addition, the SEC has the power to inquire any person subject to any privilege, which may be claimed by her/him to furnish information on such points or matter as in its opinion may be useful for the subject matter of inquiry.



Q7. Describe the planning system framework for core area of planning. 6 marks

Ans) The Planning System Framework comprises of four plans for the core area of planning:

Core Area of Planning

  1. Perspective Plan for 20-30 years with vision and policy framework for urban and regional development. Plans in this category include Long-term Vision Document, Concept Plan, and Mission Statement.

  2. District Planning Committee shall design and regulate settlement (urban and rural) plans for a period of 20 years, defining the region and regional resources for development. Plans Regional and Sub-Regional.

  3. Comprehensive Development Plan for urban and peri-urban areas under jurisdiction of Development Authority / Metropolitan Planning Committee, with review every five years. These plans include District Development Plan (Mobility 1), City/Metropolitan Development Plan (Mobility 2), Utility Master Plan, and Revised Development Plan.

  4. 5–20-year local area plan includes detailed sub-city land use plan and integration with urban infrastructure, mobility, services. Area Plan, Coastal Zone Management Plan, and Town Planning Schemes are examples of plans in this category.



Q8. What are the different sources of resources mobilisation for ULBs? 6 marks

Ans) Resource mobilisation is critical for ULBs to fulfil their responsibilities to deliver municipal services and meet the aspirations of the public. Own revenue acquired through taxes, cess, or grants, external borrowings, and privatisation activities are the three main resource mobilisation sources for ULBs. Tax revenues, non-tax revenues, allocated revenues, other receipts, bonds, and other sources of money make up the own revenue. Grants-in-aid from state and federal governments, loans, and other forms of external funding; privatisation involves engaging private parties for specific purposes under Public-Private Partnership (PPP) models.



Q9. Discuss the significance of ANGIKAAR in the PMAY (U). 6 marks

Ans) ANGIKAAR is a 2019 change management campaign. For the beneficiaries, the programme focuses on community mobilisation and IEC initiatives in the impacted areas to embrace best practises such as water and energy conservation, waste management, sanitation and hygiene. Its strategy is based on Convergence, Community Engagement, and Communication. It has four components:


Assessment of Needs, Promotion of Door-to-Door Awareness, City and Ward Activities, and Financial Literacy Outreach. PMAYU provides 20 million dwellings to bridge the backlog, AMRUT focuses on infrastructure and governance, National Urban Livelihood Mission (NULM) subsumes all poverty-related programmes and focuses on productivity of urban poor and street sellers, and HRIDAY.



Q10. Distinguish between e-Government and e-Governance. 6 marks

Ans) E-government is the concept of developing government intervention using digital technologies effectively. e-Governance is the use of information and communication technologies, notably the Internet, to improve government. It refers to the use of ICT to deliver public services and administrative information to citizens.


e-Government has the ability to improve governance processes, link citizens, and foster relationships with and within civil society. As a result, the government will be able to better manage a country's social and economic resources for development. e-Government comprises not just measures for government entities to produce and run, but also actions for the people to use. E-governance refers to activities/interactions between the government and civil society/political institutions/citizens.


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