Rajasthan has become the 6th State in the country to successfully undertake “Ease of Doing Business” reform stipulated by the Finance Ministry. The State has now become eligible to mobilise additional financial resources of 2 thousand 731 crore rupees through Open Market Borrowings.
In addition to Rajasthan five other States namely, Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Telangana have already achieved this feat. On completion of reforms facilitating ease of doing business, these six States have been granted additional borrowing permission of 19 thousand 459 crore rupees.
The Centre had decided in May this year to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business. The borrowing limit of the States was also enhanced by 2 percent of their Gross State Domestic Product, GSDP by the Government. Half of the special dispensation has been linked to undertaking citizen centric reforms by the States.
The four citizen centric areas for reforms include Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body reforms and Power Sector reforms. So far, 10 States have implemented the One Nation One Ration Card System, 6 States have done ease of doing business reforms, and 2 States have done local body reforms. Total additional borrowing permission issued so far to the States which have done the reforms stands at 50 thousand 253 crore rupees.