Almost all urban local governments in the developing world and even in the developed world face fiscal stress. Indian cities are not exception to these global trends. The perpetual problem of the fiscal imbalance between the elastic expenditure and inelastic revenue in majority of the urban local bodies (ULBs) in India continues to accentuate their fiscal crisis leading to their growing dependency on State and central government fiscal transfers. The fiscal crisis in local finance is an endemic urban problem, which needs immediate solutions. This book provides a comprehensive picture of the functioning of Municipal bodies in famine ridden Chittoor district of Andhra Pradesh. It focuses on sources of municipal revenue, pattem and growth of expenditure and their financial viability. It also brings out the problems and challenges faced by municipal governments. The book is highly useful for the policy makers in formulating strategies for better municipal administration. It seeks new ideas and tools to control expenditure, strengthen revenue, achieve credit worthiness and to improve strategic management of municipal finances.