Why this matters now
The 74th Amendment is tested for the three types of urban bodies, the Twelfth Schedule, reservations and the associated institutions (SEC, State Finance Commission, planning committees). It pairs with the 73rd in match questions.
Constitutional status
The Amendment added Part IX-A and the Twelfth Schedule, giving municipalities constitutional recognition and a degree of uniformity, so that urban local governments could function as genuine institutions of self-government rather than being left to state discretion.
Three types of municipalities
- Nagar Panchayat — for an area in transition from rural to urban;
- Municipal Council — for a smaller urban area (town);
- Municipal Corporation — for a larger urban area (city).
Key features
Salient features include: direct election of members from wards; reservation of seats for SCs/STs (in proportion to population) and at least one-third for women; a fixed five-year term (re-election within six months if dissolved); a Ward Committee for larger cities; and District and Metropolitan Planning Committees for spatial planning. The Twelfth Schedule lists 18 functional areas (e.g. urban planning, water supply, sanitation).
Supporting bodies
Two key bodies (shared with the Panchayat system) support local government: the State Election Commission, which conducts municipal elections, and the State Finance Commission, which (every five years) reviews the finances of local bodies and recommends devolution. Despite these, urban bodies often face challenges of weak finances and limited devolution of funds, functions and functionaries.
UPSC angle
Know Part IX-A + Twelfth Schedule (18 subjects), the three municipality types (Nagar Panchayat/Council/Corporation), the reservation and term rules, and the SEC & State Finance Commission. Contrast with the 73rd Amendment.
Frequently asked questions
What did the 74th Amendment do?
It gave municipalities constitutional status by adding Part IX-A and the Twelfth Schedule, creating a uniform structure of urban local self-government.
What are the three types of urban local bodies?
Nagar Panchayat (transitional area), Municipal Council (town) and Municipal Corporation (city).
What does the Twelfth Schedule contain?
The 18 functional areas (such as urban planning, water supply and sanitation) for municipalities.
Which bodies support urban local government?
The State Election Commission (conducts elections) and the State Finance Commission (reviews local-body finances every five years).