CAG report highlights governance gaps in Mizoram's urban local bodies implementation

Aizawl: In a critical audit report, the Comptroller and Auditor General of India (CAG) has raised alarms over Mizoram’s ineffective implementation of the 74th Constitutional Amendment Act (CAA), which was designed to empower Urban Local Bodies (ULBs). Despite the Mizoram government's devolution of 15 out of 18 functions to the Aizawl Municipal Corporation (AMC), the CAG found that the AMC has not engaged in activities for seven of these functions due to unclear functional domains, even 13 years post-establishment.The report highlights a significant governance gap, with only Aizawl and Lunglei having operational municipal bodies out of 15 notified towns, leaving 13 towns without ULBs. This shortfall undermines the decentralised governance framework intended by the Mizoram Municipalities Act, 2007.Further, the CAG report points to a four-year delay in constituting the Second State Finance Commission and frequent delays in releasing grants from the Central Finance Commissions to AMC. Financial management at AMC is weak, with its revenue generation covering only 25% of its expenditure, heavily relying on fiscal transfers. Discrepancies in property tax collection and a deficient property register exacerbate the financial woes.Manpower shortages, with 52% of AMC's sanctioned posts vacant, have hampered service delivery, as recruitment powers remain with the state government. The function of "Urban Poverty Alleviation" was transferred to AMC without funds, reducing its role to an implementing agency.The CAG has urged the Mizoram government to complete activity mapping, implement State Finance Commission recommendations, ensure timely grant releases, and strengthen AMC's financial management, particularly in property tax records. The report calls for immediate action to address these systemic issues and bolster urban governance in Mizoram.