To consolidate and amend the laws relating to the municipal governments in the state of
Bihar in conformity with the provisions of the constitution of India as amended by the
Constitution (Seventy-fourth Amendment) Act, 1992, based on the principles of participation
in, and decentralization, autonomy and accountability of, urban self-government at various
levels, to introduce reforms in financial management and accounting systems, internal
resource generation capacity and organizational design of Municipalities, to ensure
professionalization of the municipal personnel, and to provide for matters connected
therewith or incidental there to.