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The Constitution of India provided a clear mandate for democratic decentralisation through the 74th Amendment which sought to create an institutional framework for ushering in democracy at the grass root level through self-governing local bodies in urban areas of the country. The 74th Constitutional Amendment came into effect on 1 June 1993 and empowered Urban Local Bodies (ULBs) to perform 18 functions listed in the 12th Schedule. This Report of the Comptroller and Auditor General of India (C&AG) relates to matters arising from Performance Audit of ‘Efficacy of implementation of 74th Constitutional Amendment Act’ in Rajasthan.