PM Modi says reforms with conviction & incentives improved lives of poor and middle class

Prime Minister Narendra Modi emphasized that reforms with conviction and incentives have improved the ease of living especially for poor and middle class, ease of doing business and fostered centre-state bhagidari.

The Prime Minister also lauded the States and said they were able to raise an extra Rs 1.06 lakh crores in 2020-21 amid financial crunch across the world.

It may be recalled that Prime Minister Narendra Modi had earlier forecast the country's Economy will grow rapidly and it will result in overall and equitable prosperity among the people of the country.

In May 2020, as part of the Aatmanirbhar Bharat package, Government announced that states would be allowed to enhance borrowing for 2020-21. PM Modi said an extra 2 percent of GSDP was allowed, of which one percent was made conditional on the implementation of certain economic reforms.

He said this was a nudge, incentivising the states to adopt progressive policies to avail additional funds. He added that the results of this exercise are not only encouraging but also run contrary to the notion that there are limited takers for sound economic policies.

The Prime Minister said the four reforms to which additional borrowings were linked had two characteristics. Firstly, each of the reforms was linked to improving the Ease of Living to the public and particularly the poor, the vulnerable, and the middle class. Secondly, they also promoted fiscal sustainability.