The 15th Finance Commission headed by its Chairman, Shri N.K. Singh as part of  its visit to the State of Meghalaya today held a meeting with the representatives of the Urban Local Bodies of  Meghalaya. 

The  Commission was informed that:      

• The State has constituted its ULBs under the Meghalaya Municipal Act and Sixth Schedule of the Constitution.
• As ULBs are not constituted under 74th constitutional amendment, the State is not bound to follow certain provisions of the Amendment, for example, (i) hold direct municipal elections (ii) constitute ward committees, (iii) reserve seats for schedule castes, schedule tribes and women, (iv) continue municipalities for a period of five years, and (v) constitute state finance commission, state election commission and district planning committees.
• There are six Municipal Boards  in Meghalaya but the elections are not being held regularly in Municipal Boards.

Regarding the Revenue Sources of ULBs, the Commission noted that:

• The Meghalaya Municipal Act 1973 empowers the Municipal Boards to mobilise resources through the levy of taxes as well as non-tax sources.
• The tax sources include levy of tax on holdings situated within the municipality; water tax; light tax; latrine tax; drainage tax; tax on private markets and tolls on bridges.
• The non-tax sources include license fees on carts, carriages and animals used for riding, or burden; fee on the registration of dogs and cattle; license fee on boats; betterment fee; fees for setting up and maintenance of fire brigade; fees for conducting at the cost of Board, any scheme of social service for the improvement of public health; fee on boats mooring within the municipality; and penalties for various offences.
• Their own resources are reported to be insufficient to carry any development work.

The Commission had detailed discussion with the representatives and assured to look into the issues raised by them while making their recommendations on Meghalaya. 

Municipal constitutional status limits autonomy; irregular elections and restricted powers constrain local revenue mobilisation under state law. ULBs constituted under the Meghalaya Municipal Act and the Sixth Schedule operate with limited municipal autonomy because they are not formed under the national municipal reform framework, so certain institutional and electoral mandates do not apply; municipal boards possess specified tax and non-tax powers but report their own-source revenues as insufficient, and irregular elections persist, issues the Finance Commission will consider in its recommendations.