New Delhi [India], January 28 (ANI): Rajasthan has become the fifth state to complete the Urban Local Bodies (ULBs) reforms stipulated by the Department of Expenditure, read a release by the Ministry of Finance.
The State has been granted permission by the Department of Expenditure to mobilise additional financial resources of Rs 2,731 crore through Open Market Borrowings, the ministry said.
"Before Rajasthan, four other states, namely Andhra Pradesh, Madhya Pradesh, Manipur and Telangana, have successfully completed the ULB reforms. So far, additional borrowing permission of Rs 10,212 crore has been granted to these five states for undertaking ULB reforms," read the release.
The reforms in ULBs and the urban utility reforms are aimed at financial strengthening of ULBs in the States and to enable them to provide better public health and sanitation services to citizens. Economically rejuvenated ULBs will also be able to create good civic infrastructure.
In view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the Government of India had on May 17, 2020, enhanced the borrowing limit of the States by 2 per cent of their Gross States Domestic Product (GSDP).
The States get permission to raise additional funds equivalent to 0.25 per cent of GSDP on completion of reforms in each sector.
The four citizen-centric areas identified for reforms are one nation one ration card system, ease of doing business reform, ULBs and utilities, and the power sector.
So far 11 states have implemented the one nation one ration card system, 8 states have done ease of doing business reforms, 5 states have done local body reforms, and 1 state has completed power sector reforms, the ministry said.
Total reform linked additional borrowing permission issued so far to the states who have done the reforms stands at Rs 65,493 crore, it said. (ANI)