Councillor Emergency Fund: A Major Step Toward Strengthening Local Democracy
By Gaurav Malik
President, Mission 7374 Foundation
On 2 March 2026, in his Budget speech, the Chief Minister of Haryana announced the creation of the “Councillor Emergency Fund.” Under this decision, councillors of Municipal Corporations will receive ₹6 lakh annually, councillors of Municipal Councils ₹3 lakh annually, and councillors of Municipal Committees ₹1.5 lakh annually. This is not merely an administrative announcement; it represents an important structural shift toward strengthening local democracy.
Last year, on 2 November 2025, Mission 7374 Foundation organized the Reimagining Gurugram Conference, followed by the release of the Reimagining Gurugram Declaration 2025 on 15 November 2025. The Declaration clearly stated that one of the biggest problems facing our cities is the imbalance between authority and accountability. Councillors are answerable to the people, yet they often lack adequate control over resources and decision-making. The Declaration demanded that each ward be provided with an independent Ward Development Fund so that local problems could be addressed at the local level. The “Councillor Emergency Fund” is the first practical expression of that vision.
The ground reality today is simple. If a sewer cover breaks, a drain collapses, a pothole appears, debris needs removal, or a water tanker is urgently required, the councillor faces public expectations but often lacks the financial authority to act immediately. Files move between departments, approvals take time, and even minor issues remain unresolved. This creates frustration among citizens and erodes trust in governance. With the introduction of the “Councillor Emergency Fund,” councillors will now be able to carry out small maintenance works promptly. Service delivery can become faster, and accountability at the ward level can become clearer.
This is a major and welcome step in the right direction. However, certain structural limitations remain. For example, in Manesar Municipal Corporation, a councillor represents approximately 3,000 voters, while in Gurugram Municipal Corporation a councillor represents nearly 22,000 voters. Yet both will receive ₹6 lakh annually. If Manesar is taken as the base, a Gurugram councillor should ideally receive around ₹22 lakh annually. Similarly, in Farrukhnagar Municipal Committee, a councillor represents roughly 700 voters and receives ₹1.5 lakh annually. By that proportional logic, a Gurugram councillor should receive nearly ₹47 lakh annually. Clearly, in the future this fund should evolve into a population-linked model to ensure greater equity.
Despite these limitations, the scheme deserves immediate support. A councillor’s pen will always move ten times faster than that of an officer when it comes to local works, because the councillor lives among the people, hears their grievances daily, and is politically accountable to them. Empowering councillors with limited but direct financial authority for small maintenance works will enhance administrative efficiency and responsiveness.
This decision is also consistent with the spirit of the 74th Constitutional Amendment, which envisioned decentralization of finances, functions, and functionaries. For a long time, financial power in urban local bodies has remained centralized. The Reimagining Gurugram Declaration advocated a balanced power-sharing structure in which the Mayor, councillors, and the Commissioner have clearly defined roles and where elected representatives have meaningful participation in financial decisions. The “Councillor Emergency Fund” is the first step toward that structural correction.
For years, the paradox has been that elected representatives are blamed for failures but lack the authority to fix them. That situation can now begin to change. When councillors possess even limited independent financial power, they can stand before their citizens with greater confidence, and citizens can expect direct solutions from their elected representative.
Today, councillors have received an emergency fund. The next step should be to gradually transfer larger ward-level development funds from the pen of the officer to the pen of the councillor. When priority-setting authority lies with the elected representative, development becomes more aligned with local needs. At the same time, transparency in the use of this fund must be ensured through online reporting and public disclosure at the ward level to maintain accountability.
The “Councillor Emergency Fund” is not a final solution, but it is a decisive beginning. If reforms in this direction continue, Haryana can set an example in urban local governance. The need of the hour is to welcome this initiative, monitor its implementation carefully, and continue constructive dialogue for the next phase of reforms. Because when the councillor is strong, the ward becomes strong — and when the ward becomes strong, the city truly becomes strong.
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