The system of local service delivery through the means of local government bodies began with a Budget Speech by a member of viceroy’s council Samuel Laing, he proposed that local services should be based on local resources. Local governance bodies have been a part of Indian governance system since the British Era, the first Municipal Corporation was set up in Madras in 1688 followed by Bombay and Calcutta. In the beginning local governance bodies were mere implementation instrument of state government’s activities but since the introduction of the 74thConstitutional Amendment Act, there has been a change in this status quo.
Since the early 1990s there has been a lot of initiative undertaken by the Government of India which were aimed at decentralisation of urban governance, this was the part of adoption of neo-liberal policies adopted by the government after facing failure of the state-led development model, as for under this model the government kept its role secondary giving more importance to market oriented approaches. Under this step taken by the Government of India enactment of the 74thConstitutional Amendment Act, was one such initiative, this gave constitutional recognition to urban local bodies and a constitutional right to exist. AnewTwelfthScheduletotheConstitutionprovidesrecommendedlistoflocalfunctions.