Financial Performance Evaluation of Municipal Corporations in the States of Haryana and Punjab: A Comparative Analysis

Abstract

This paper will compare and contrast the financial performance of the municipal corporations that function in the religious states of Haryana and Punjab, India. The study focuses on comparing the trends of income generation and expenditure management based on secondary data in terms of five years between 2017-18 and 2021-22. Reported data were used that comprised data published and found in the respective Directorates of Economics and Statistics of both state governments. The results show that the general trend of the revenues and expenditure of both states is on an upward trend over the period under examination with the expenditure continually surpassing the revenues. The paper identifies the financial weakness of the urban local governments by showing the shortcomings of their structure and the necessity of structural reforms in fiscal management.