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This volume is a compilation of the papers and proceedings of a national seminar on municipal finance held in December 2003. It discusses the role of the Twelfth Finance Commission, Government of India in devolution to local bodies,the state of local finances and degree of delivery of municipal services and innovative methods of raising local revenues and making urban local bodies more healthy and financially sustainable. About the Author P.S.N. Rao, Ph.D. Master of Town Planning (SPA), B.E. (Civil), F.I.T.P., F.I.V., A.I.I.A., Cert. in Urban Management (Canada) is a well known housing, urban development and municipal sector specialist based in New Delhi, India. He is a recipient of the SPA Gold Medal, the Indian Building Congress Medal and the AICTE Young Teachers' Award of the Government of India. He has published over one hundred papers, supervised over 70 post graduate these on various aspects of urban development and conducted over 30 research and consultancy assignment. Management at the Indian Institute of Public Administration (IIPA), New Delhi IAS and other functionaries of th central, state and local governments. He is also the Joint Editor of Nagarlok, an urban affairs quarterly of the IIPA. G.C. Srivastava, Ph.D., M.Sc., M.A., L.L.B. is an IAS officer of the 1967 batch. He has written extensively on agriculture, rural development and other areas of public administration and development. Formerly, he was the Chief Secretary, Government of Goa, Additional Secretary, Ministry of Finance and Chairman of the Tariff Commission. Presently, he is the Member-Secretary of the Twelfth Finance Commission, Government of India. Table of Contents Introduction An overview The National Finance Commission and Fiscal Devolution to Local Bodies Powers and Functional Responsibilities of ULBs: Potential for Tax and Non-Tax Revenues Commensurate with Services Expected ULBs in India: Focus on Transfer of Functions and Funds Municipal Financial Resource Mobilisation: Status, Concerns and Issues Municipal Data: Tables, Charts and Diagrams Executive Summary of the Seminar