UPSC(2026) Prelims Practice Questions on Urban Governance in India

 

UPSC(2026) Prelims Practice Questions on Urban Governance in India

1. Consider the following statements regarding the 74th Constitutional Amendment Act (CAA):

1. It granted constitutional status to Urban Local Bodies (ULBs).

2. It added the 12th Schedule to the Constitution.

3. It mandated the establishment of State Election Commissions.

How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (c) All three

• Statement 1 is correct: The 74th CAA, 1992, did grant constitutional status to Urban Local Bodies.

• Statement 2 is correct: The 12th Schedule, which lists 18 functions for ULBs, was added by the 74th CAA.

• Statement 3 is correct: The 74th CAA mandated the establishment of State Election Commissions to conduct elections for ULBs.

2. As per the CAG Audit (2024) findings cited in the passage, on average, how many of the 18 functions from the 12th Schedule are under the full control of Urban Local Bodies (ULBs)?
(a) 4
(b) 8
(c) 12
(d) 15

Answer: (a) 4

• Explanation: The passage explicitly states, "on average, only 4 out of 18 functions are under their full control." This highlights the significant functional deficit faced by ULBs.

3. Which of the following is/are institutional mechanisms mandated by the 74th Constitutional Amendment Act?

1. State Finance Commission (SFC)

2. District Planning Committee (DPC)

3. Metropolitan Planning Committee (MPC)

Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d) 1, 2 and 3

• Explanation: The 74th CAA mandates all three institutions: the SFC for financial devolution, the DPC for consoliding district plans, and the MPC for planning in metropolitan areas.

4. According to the passage, what is the approximate expenditure-revenue gap faced by Urban Local Bodies (ULBs) across 11 states?
(a) 22%
(b) 32%
(c) 42%
(d) 52%

Answer: (c) 42%

• Explanation: The text mentions this specific figure: "It leads to a 42% expenditure–revenue gap across 11 states," underlining the severe financial distress of ULBs.

5. The 'SmartCode' platform, recently in the news, is best related to which of the following initiatives?
(a) Swachh Bharat Mission (Urban)
(b) National Urban Digital Mission (NUDM)
(c) AMRUT
(d) Ease of Living Index

Answer: (b) National Urban Digital Mission (NUDM)

• Explanation: The passage lists SmartCode as one of the platforms under the National Urban Digital Mission (NUDM), aimed at collaborative urban tech development.

6. Consider the following statements based on the CAG Audit (2024):

1. A majority of Urban Local Bodies in 17 states lack an elected council.

2. Only three states have functional Metropolitan Planning Committees (MPCs).

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (c) Both 1 and 2

• Statement 1 is correct: The text states that "61% (1,600 of 2,625) ULBs in 17 states lack an elected council," which constitutes a majority.

• Statement 2 is correct: It is mentioned that "Of the nine states required to form MPCs, only three have functional committees."

7. The 'PEARL initiative', sometimes mentioned in the context of urban development, operates under which of the following?
(a) Smart Cities Mission
(b) JnNURM (Jawaharlal Nehru National Urban Renewal Mission)
(c) AMRUT
(d) Swachh Bharat Mission

Answer: (b) JnNURM (Jawaharlal Nehru National Urban Renewal Mission)

• Explanation: The passage notes that the Compendium of Urban Reforms promotes peer learning "through the PEARL initiative under JnNURM."

8. What is the primary cause for Urban Local Bodies (ULBs) being able to allocate only 29% of their funds to development activities, as per the passage?
(a) Mandatory allocation to staff salaries
(b) A 42% expenditure-revenue gap
(c) Directions from the State Finance Commission
(d) Investments in digital infrastructure

Answer: (b) A 42% expenditure-revenue gap

• Explanation: The financial distress is directly linked to the revenue gap. The text states, "It leads to a 42% expenditure–revenue gap across 11 states, forcing ULBs to allocate just 29% of their funds to development activities."

9. The 'India Urban Data Exchange (IUDX)' is primarily aimed at:
(a) Trading municipal bonds
(b) Facilitating secure data sharing
(c) Managing property tax records
(d) Monitoring air quality levels

Answer: (b) Facilitating secure data sharing

• Explanation: IUDX is listed as a platform under the National Urban Digital Mission (NUDM) that enables secure data sharing.

10. Which of the following is the most critical implication of state governments frequently intervening in the functions of Urban Local Bodies (ULBs), as highlighted in the passage?
(a) Increase in public-private partnerships
(b) Weakening of the spirit of the 74th Constitutional Amendment Act
(c) Standardization of service delivery across states
(d) Enhanced coordination with parastatal agencies

Answer: (b) Weakening of the spirit of the 74th Constitutional Amendment Act

• Explanation: The core argument of the passage is that state control stifles the autonomy of ULBs, which directly undermines the core objective of the 74th CAA: to establish ULBs as "institutions of self-government." The other options are either not mentioned or are not the primary implications.