Sixth report of Second Administrative Reforms Commission

Local Governancewould constitute the Ward Committee. The Commission is of the view that in smallertowns also, with populations of less than 3 lakhs, it is necessary to have formal mechanismsfor citizen participation and local decision making through Ward Committees.5.2.2.3.3 The Ward Committee members must have regular meetings with the citizens theyrepresent, through Area Sabhas, to review programmes, their planning and implementation.There must also be regular meetings of the Committee with elected members from AreaSabhas. The Committee must have legitimate functions and appropriate financial devolution.These should cover all the relevant activities that may be delegated by the Legislature orthe Municipal Council. A suggestive functional and financial devolution to the WardCommittees is as follows (based on “Empowerment of Local Governments, Stakeholdersand citizens”, a Discussion Paper for the National Advisory Council, March, 2005):a. The Ward Committee shall be empowered to exercise control over all suchactivities, which could be handled at the ward level such as street lighting,sanitation, water supply, drainage, road maintenance, maintenance of schoolbuildings, maintenance of local hospitals/dispensaries, local markets, parks,playgrounds, etc.b. The employees, in respect of all functions entrusted to the Ward Committee,shall function under the Committee and shall be held accountable to theCommittee. The salaries to all such employees shall be authorised/paid by theCommittee on the basis of their performance.c. The funds allocated to those functions entrusted to the Ward Committee shallbe transferred en-bloc to the Ward Committee.d. The budget adopted by the ward committee in respect to the functionsallotted to it shall be taken into account in formulating the overall municipalbudget.e. The meetings of the Ward Committee shall be widely publicised to ensuremaximum presence and participation of the residents of the ward.f. The Ward Committees should be given a share of the property taxes collectedfrom the ward, depending on the economic profile of the locality.g. The Ward Committee may raise funds through other sources.5.2.2.3.4 Non-residential Stakeholders: While the structure proposed would provide forthe participation of residents, there is an increasing recognition that in urban areas, it is notonly the individual voter who needs to be involved, but also non-residential stakeholders,210