Municipal finance involves the revenue and spending decisions of local governments. It covers the sources of revenue such as taxes, user fees, and transfers from other levels of government. Municipal finance also includes financing infrastructure through operating revenues, borrowing, developer charges, and public-private partnerships. It addresses expenditure at the local level and ensuring accountability for revenue and spending decisions through the municipal budget and financial management processes.

1. (UNHabitat2009)
Municipal Finance
Municipal finance is about the revenue and expenditure decisions of municipal
governments. It covers the sources of revenue that are used by municipal
governments – taxes (property, income, sales, excise taxes), user fees, and
intergovernmental transfers. It includes ways of financing infrastructure through
the use of operating revenues and borrowing as well as charges on developers
and public-private partnerships. Municipal finance also addresses issues around
expenditures at the local level and the accountability for expenditure and
revenue decisions, including the municipal budgetary process and financial
management.(UNHabitat2009)

2.  The most important option for ULBs in India is to
access the market-based financing for their
infrastructure which includes various type of
financing alternatives i.e. municipal bonds,
municipal credit rating, and pooled financing.
Existing Market-Based Financing for Urban Infrastructure
Research Analyst, National Institute of Urban Affairs, New Delhi
Municipal Bonds
Taxable Municipal Bonds
Tax-Free Municipal Bonds
Municipal Credit Rating
Pooled Financing
Public Private Partnership (PPP)
 Several municipalities and
utility organizations have
issued bonds that so far
have mobilized over
Rs.12,316 million through
various infrastructure
instruments.