Udayavni Special

Finance Ministry permits 5 states, incldg K’taka to borrow extra Rs 16,728 cr


PTI, Dec 20, 2020, 12:47 PM IST

New Delhi: The Finance Ministry on Sunday said five states, including Tamil Nadu and Telangana, have been permitted to borrow an additional Rs 16,728 crore following completion of stipulated reforms for ‘Ease of Doing Business’.

Andhra Pradesh, Karnataka and Madhya Pradesh are the other states which have been permitted to borrow the extra amount.

The government had in May decided to link grant of additional borrowing permission to states with reforms undertaken by them to facilitate ease of doing business.

The reforms stipulated in the category include completion of first assessment of ”District Level Business Reform Action Plan”.

Besides, elimination of requirements of renewal of registration certificates/approvals/licences obtained by businesses for various activities, at least under certain Acts specified by the Centre, was also part of the reforms.

“5 states have so far completed the stipulated reforms in the Ease of Doing Business. These states have been granted permission to mobilize additional financial resources to the tune of Rs 16,728 crore through open market borrowings,” the Ministry said in a statement.

To meet the extra fund requirements of states on account of COVID-19 pandemic, the Centre had in May decided to raise the borrowing limit of the states by 2 per cent of their Gross State Domestic Product (GSDP), over and above the 3 per cent limit set under the Fiscal Responsibility and Budget Management (FRBM) Act.

However, states were required to complete four specific reforms — implementation of ”One Nation, One Ration Card” system, ease of doing business reforms, urban local body/utility reforms and power sector reforms — by February 15, 2020 to get the benefits.

Such states would get the facility of additional borrowing equivalent to 0.25 per cent of their GSDP for completing each reform. Under this facility, additional borrowing of up to Rs 2.14 lakh crore is available to the states on completion of all the four reforms.

“So far 10 states have implemented the One Nation One Ration Card system, 5 states have done Ease of Doing Business reforms, and 2 states have done local body reforms,” the Ministry added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

India’s demographic dividend needs to be fully leveraged: Venkaiah Naidu

Kumaraswamy accuses Amit Shah of ignoring Kannada

Indian economy may contract 25% in current fiscal: Economist Arun Kumar

IFFI apologises after mixing up Satyajit Ray’s ‘Sonar Kella’ plot with Salman Khan’s ‘Dabangg’

Modi govt is dedicated to farmers.: Amit Shah

India’s active COVID-19 cases fall below 2 per cent of total caseload for first time

Amit Shah says three farm laws will help farmers’ income increase manifold


Related Articles More

Bantwal: Prostitution racket busted; accused detained

Govt must issue white paper on unavailability of funds demands Parameshwara

Belagavi: Amit Shah visits Suresh Angadi’s residence

Kumaraswamy accuses Amit Shah of ignoring Kannada

Modi govt is dedicated to farmers.: Amit Shah

MUST WATCH

I have not asked for a ministerial position: Halady Srinivasa Shetty

Staff nurse Shobha, first to be vaccinated against Covid at Dr. TMA Pai hospital

Ravi Katapadi, the hope of the poorest children, won 12.5 lakhs at KBC | Udayavani

Signal surges ahead of Whatsapp amid privacy concerns

What do vaccine experts say about confusion over the covid vaccine?

Latest Additions

Bantwal: Prostitution racket busted; accused detained

Shiv Sena to contest in West Bengal Assembly election says Raut

Uganda’s opposition rejects Museveni’s reelection as fraud

Govt must issue white paper on unavailability of funds demands Parameshwara

Tens of thousands evacuated amid Indonesia floods

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.