A Practical Approach towards Managing Government Funds in Tripura

Abstract

The study examines the perception of the employees working in different State Government Departments in Tripura, and of university and college students about funds management in government sector. It obtained primary data from 160 respondents consisting of 96 men and 64 women from all the eight districts of Tripura using judgement and quota sampling technique through schedule and personal interviews. Different statistical tests like Students t-test, Pearsons Chi-square test, and factor analysis like Principal Component Analysis were performed to assess support for the hypotheses. The reliability of the questions and sample adequacy test was also carried out. Through factor analysis, four major factors viz. perceptions about the philosophy of Government accounting, perceptions about lack of financial literacy of the DDOs, perceptions about dysfunctional bureaucracy, and perceptions about slack monitoring and controlling of Governments funds were extracted. Based on such factors, Students t-test was carried out. PCA has been carried out in order to analyze the various components and Chi-square test was carried out to know the association of the male and female respondents perceptions about effective funds management strategies. The results of the study suggest that DDOs lack adequate financial education, they blindly trust the cashier, and books of records are not properly maintained and updated. It also suggests that periodical training, regular updating of books of accounts, accessing net banking facility for keeping vigil and continuous internal control and audit should be initiated for efficient funds management and to prevent employees fraud.