Using the Power-Interruptions-Finances-Resources model to tackle the financial management problems of municipal corporations in India

Abstract

Purpose: The paper aims to explore the problems related to the financial management of municipal corporations in India and to suggest solutions. Design/methodology/approach: The study is based on primary data collected from a sample of 577 employees of municipal corporations working in four metro cities of India, namely Chennai, Mumbai, Kolkata, and Delhi. Data were put through exploratory and confirmatory factor analysis for problem identification and inferences were classified and grouped to map the solutions for these problems. Findings: The study found that municipal corporations in India face four major problems or issues in their financial management. These problems are mainly related to the four dimensions: Power, Interruptions, Finances, and Resources. The model used to explore these four types of issues is named as “PIFR model” by the author. Originality/value: The findings suggest that real-world problems can be represented through a conceptual model that helps in identifying practical suggestions which can be implemented by municipal corporations at the ground level for better financial management.