GUWAHATI: At a time when Assam's cities are grappling with waterlogging, overflowing drains, mounting garbage and crumbling civic infrastructure, a damning audit by the Comptroller and Auditor General (CAG) has exposed serious deficiencies in the functioning of Urban Local Bodies (ULBs), revealing a system plagued by poor planning, unrealistic budgeting, under-utilisation of funds and inadequate financial empowerment.
ALSO READ: Thieves Breach Wall of Namghar in Guwahati’s Paltan Bazar; Cash Stolen
The latest CAG Report on Local Bodies for 2023-24 paints a troubling picture of urban governance in Assam. While residents across Guwahati, Dibrugarh, Silchar, Nagaon, Jorhat and several municipal towns continue to demand better civic amenities, the audit found that urban local bodies collectively failed to utilise a significant portion of the resources available to them.
According to the report, Assam's ULBs received ₹5,864.82 crore between 2019-20 and 2023-24 but spent only ₹4,627.50 crore during the period. This resulted in a cumulative short utilisation of ₹1,237.32 crore, representing 21 per cent of available resources. In simple terms, one-fifth of the money available for civic development remained unutilised while citizens endured poor urban services.
The findings raise uncomfortable questions about the efficiency of municipal administration in Assam. Every monsoon, urban centres witness severe flooding. Roads deteriorate rapidly. Garbage disposal remains a challenge in several towns. Yet substantial public funds remained unspent.
The audit observed that financial planning within municipal bodies was often detached from reality. Budget estimates prepared by many municipalities bore little resemblance to actual receipts and expenditure. Such unrealistic budgeting, the report noted, reflected weak financial management and poor assessment of developmental requirements.
One of the most glaring examples cited by auditors was North Guwahati Municipal Board. During 2021-22, actual receipts exceeded budget estimates by more than 361 per cent. Such a huge variation indicated that budgets were being prepared without proper financial assessment. Similarly, Guwahati Municipal Corporation recorded major fluctuations between budget estimates and actual financial performance, exposing weaknesses in fiscal planning.
The report further highlighted that several municipal bodies repeatedly overestimated both income and expenditure, making annual budgets little more than paperwork exercises rather than practical planning documents. Experts say unrealistic budgeting not only distorts financial management but also hampers project implementation and accountability.
Equally alarming was the issue of inadequate fiscal devolution by the State Government. The audit found persistent shortfalls in the transfer of State Finance Commission (SFC) funds to urban local bodies. Between 2019-20 and 2023-24, the short devolution ranged from 60 per cent to 100 per cent in most years, with the exception of 2022-23.
In 2020-21, not a single rupee of the earmarked SFC funds was devolved to urban local bodies despite a requirement of ₹68.64 crore. In 2023-24, only ₹69.93 crore was transferred against a requirement of ₹175.06 crore, leaving a shortfall of over ₹60 crore. The report warned that such persistent underfunding weakens local governance and deprives municipalities of resources necessary for essential civic services.
The findings are significant because urban local bodies are expected to function as the primary institutions responsible for roads, drainage, sanitation, street lighting, waste management and other critical public services. When funds are either not devolved or not utilised effectively, the ultimate victims are urban residents.
The audit also indirectly exposes the larger governance paradox facing Assam. Over the past decade, successive governments have aggressively promoted urban infrastructure projects, smart city initiatives, beautification drives and large-scale investments. However, the municipal institutions tasked with maintaining everyday civic services continue to struggle with financial and administrative weaknesses.
Urban governance experts say the problem is structural. Municipalities remain heavily dependent on state government grants and possess limited revenue-generating capacity. Property tax collection remains weak in many towns, professional staffing is inadequate and planning mechanisms remain outdated.
"The report shows that urban governance is still being managed through a top-down approach rather than through empowered local governments," said a former municipal administrator. "Cities cannot be managed effectively if municipalities lack financial autonomy and professional capacity."
The audit findings come at a particularly important time as Assam experiences rapid urbanisation. Guwahati's population continues to expand while several district headquarters are evolving into major urban centres. The demand for better drainage systems, sustainable waste management, reliable water supply and improved urban transport is growing rapidly.
However, unless municipal institutions themselves become stronger, experts warn that investments alone may not solve the crisis.
The CAG report serves as a stark reminder that urban development is not merely about inaugurating flyovers, riverfront projects or beautification schemes. It is equally about ensuring that local governments function efficiently, maintain accurate accounts, prepare realistic budgets and utilise public funds effectively.
For citizens who continue to navigate flooded streets, clogged drains and deteriorating civic services, the report reinforces a question that has become increasingly difficult to ignore: if thousands of crores are being allocated for urban development, why do basic municipal services continue to fall short?
The audit's findings suggest that the answer may lie not in the absence of funds alone, but in the deeper governance failures that continue to undermine Assam's urban local bodies.