Municipal functions are generally classified as:
1. Obligatory functions - The obligatory functions are those that an ULB is supposed to necessarily perform like water supply, sanitation, roads, etc.
2. Discretionary functions - These are the functions that a municipality may take up, if there is demand from the citizens and resources are available like construction of community centres, public parks and gardens, organising cultural activities, etc. These functions in terms of their application have one or more of the three components investment or capital works, O&M and regulation.
