This book attempts to assess the functional domain and financial health of urban local bodies in most of the states in India where Finance Commissions have submitted their reports. Discussing the taxation powers, it analyses the recommendations of State Finance Commissions. The analysis has been grouped mainly as augmenting existing sources tax and non-tax, assignment of tax sources, sharing, grants-in-aid and miscellaneous. Highlighting the present urban scenario, it conceptualises the principles of decentralisation in the historical perspective. The analysis covers the states of Andhra Pradesh, Assam, Karnataka, Kerala, Madhya Pradesh, Manipur, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal