Abstract Urban local bodies play an important role in the economic development of the country and well being of the people of the concerned local area. One of the most important objective of the government of India after independence was to inculcate self reliance and spirit of freedom among the citizens. For thisurban local authorities namely Municipal councils and Municipal Corporations catered the needs of urban population. The main emphasis of this paper is to analyse the sources of revenues and expenditure of municipal corporations of Jalandhar Ludhiana and Pa Municipal corporations. The research methodology used is based on primary and secondary data. The study is based on the data collected through Questionnaire and Municipal Budgets .The mayor, Commissioner and officials of accounts department filled the questionnaire for studying the financial position of the corporations.