The 74th Constitutional Amendment Act of 1992 recognizes urban local bodies in India and enables them to function as institutions of self-government. Municipal corporations are central to democratic governance, particularly in a large and rapidly urbanizing country. Their effectiveness depends on financial capacity, as local responsibilities must be supported by adequate resources. Sound accounting and financial management help municipal administrations plan, monitor, and regulate service delivery responsibly. However, the Act has not been implemented in reality. This study presents a comparative assessment of the financial performance of Lucknow Municipal Corporation (LMC) and Varanasi Municipal Corporation (VMC). It analyzes major revenue and expenditure components to evaluate financial management efficiency. One-Way ANOVA is used to test whether differences in selected financial indicators are statistically significant. The findings slow clear differences in revenue structures, expenditure patterns, and overall fiscal capacity. The analysis highlights persistent fiscal capacity. The analysis highlights persistent fiscal gaps and scope for stronger municipal financial reforms nationwide.