With The Growing Pace Of Urbani¬Zation And The Continuing Accent On Democratic Decentralisation, The Local Authorities Have Assumed Their Impor¬Tance And They Can Be Assigned A Useful And Effective Role In Implemen¬Ting Local Development Programmes. But Finance Is The Key Determining Factor And This Is What The Author Has Sought To Study About. The Author Has Examined Some Very Controversial Issues Relating To Devolution Of Resour¬Ces In Depth. The General Apathy Of The Higher Level Of Governments In Giving Grants And Loans To The Lower Level Of Governments Has Also Been Verified. The Author Contends That The Rate Of Growth Of Economic Develop¬Ment Can Be Accelerated If Local Governments Are Associated With The Planning Process And Has Suggested The Ways In Which Federal Fiscal Devo¬Lution Can Help To Achieve The Broader Economic And Social Objectives. Credit Goes To The Author In Examining Urban Local Finance Rather Neglected In The Study Of Government Finances Which Now Seeks To Concentrate On The Finances Of Union And State Govern¬Ments Only.