The municipal bodies do not function smoothly and face some challenges at different times. Here are some of the difficulties faced by the municipal bodies. Qualifications: The primary issue in the municipal bodies is the qualification of the members. Not all members are qualified, which creates a disbalance in the functioning. The lack of finance: The biggest hurdle in working urban local bodies is finance. The finance requirement is huge, but both centre and state governments fail to meet the finance requirements, which puts them in a difficult situation.