NITI Aayog released report “Moving Towards Effective City Government – A Framework for Million-plus Cities”, presenting a focused roadmap to strengthen urban governance in India. The report is framed within the vision of Viksit Bharat by 2047 and India’s goal of progressing towards a $30 trillion economy, recognising cities as central drivers of economic growth, innovation, and employment.
Key Challenges Identified
The report identifies persistent governance issues including weak and fragmented leadership structures, constrained fiscal capacity, limited devolution of powers, weak financial autonomy, and diffused accountability — all of which constrain cities from realising their potential as engines of growth.
Key Recommendations
- Strengthening City Leadership: Introduction of a directly elected Mayor with a fixed tenure, supported by an empowered Mayor-in-Council system to ensure continuity, clarity, and accountability in decision-making.
- Integrating Urban Service Delivery: Bringing key functions such as water supply, sanitation, and public transport under the purview of city governments to improve coordination and accountability.
- Enhancing Municipal Finances: Strengthening own-source revenues, ensuring more predictable and timely fiscal transfers through robust State Finance Commissions, and enabling access to market-based financing mechanisms such as municipal bonds.
- Institutional Restructuring: Bringing multiple parastatal agencies involved in service delivery under city government oversight, with clearly defined roles and stronger coordination frameworks.
Implementation Roadmap
The report recommends that states amend their Municipal Acts to reflect governance reforms, and calls on the Ministry of Housing and Urban Affairs to update the Model Municipal Law and provide guidance and incentives for reform adoption. A phased approach to implementation is proposed to enable testing, learning, and development of scalable frameworks.