Recognising the pivotal role - 15th FC has suggested reforms for ULBs, evaluate reforms for government bodies, exiting of ULBs in India

Article 280 of Indian Constitution empowers President to constitute Finance Commission. 15th FC under NK Singh was constituted for same. Recommendations of 15th FC wrt ULBs: A Metropolitan Governance remains its one of primary focus. B Focus challenges: of Drinking water supply, sanitation, waste treatment in million plus cities. C Million plus challenge fund - 38,000 crore can be accessed by million plus ULBs if they solve above challenges i.e. 100% outcome based funding. Eg: Mumbai BMC. D for below million plus cities - mixture of Tiered and basic performance based grants.