Rajiv Gauba urges elected mayors and greater fiscal power for Indian cities

At the valedictory session of the 2nd National Urban Conclave, Rajiv Gauba of NITI Aayog warned that India's cities cannot be effectively managed from state capitals and outlined a series of reforms. He proposed the introduction of directly elected mayors with five-year terms, a Mayor-in-Council structure and regular municipal elections to boost accountability. Gauba called for the devolution of all 18 functions under the 74th Constitutional Amendment, including master planning and traffic management, to urban local bodies.

To address weak municipal finances, he suggested better property-tax collection, improved recovery of user charges and larger fiscal transfers, noting that central grants to cities have risen from 36% to 45% of allocations. He also recommended relaxing floor-area-ratio limits, promoting mixed-use zoning, transit-oriented development and land-pooling, and adopting the Model Tenancy Act to expand affordable rental housing. Gauba pointed to a tenfold rise in urban sector spending since 2014, the ₹3.7 trillion invested in metros and buses, the ₹1 trillion Urban Challenge Fund, and ₹5,000 crore allocations for city economic regions as financial foundations for these changes.