The all India data base on municipal finances available in India is developed every five years, e.g., 2002-03, 2007-08, 2012-13, as part of the data collected by the Central Finance Commission. The 14th Finance Commission collected data for the year 2012-13 on municipal finances and arrived at an all India picture and the 15th Finance Commission will do the same for the years 2017-18. Against this background, the Fifteenth Finance Commission has commissioned ICRIER to undertake a study to analyse the state of municipal finances in India by developing a set of indicators. This study will compile broad national and state level indicators on municipal finances to enable the 15th Finance Commission to take informed decisions regarding recommendations to States, duly taking into account the State Finance Commission (SFC) Reports.