New Delhi (NVI): The Center today informed that 20 states have successfully implemented the “Ease of Doing Business” reforms with five more states being the latest to complete the reform.
These five states namely Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura have completed the “Ease of Doing Business” reforms stipulated by the Department of Expenditure.
“States completing Ease of Doing Business reforms are eligible for additional borrowing of 0.25 percent of Gross State Domestic Product (GSDP),” the Ministry of Finance said in a statement.
Accordingly, on receipt of recommendations from the Department for Promotion of Industry and Internal Trade (DPIIT), these 20 states have been granted permission to raise additional financial resources of Rs 39,521 crore through open market borrowings, it added.
Notably, the ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the ease of doing business will enable faster future growth of the state economy, the ministry said.
Therefore, the government in May last year, decided to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business.
The reforms stipulated under this category includes completion of first assessment of ‘District Level Business Reform Action Plan’ and elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various acts.
Also, implementation of computerized central random inspection system under the Acts wherein allocation of inspectors is done centrally.
Last year, in view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the government had enhanced the borrowing limit of the States by 2 percent of their GSDP, the statement said.
“Half of this special dispensation was linked to undertaking citizen centric reforms by the States,” it added.
The four citizen centric areas for reforms identified were Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body/ utility reforms and Power Sector reforms.
Tamil Nadu has been granted highest additional borrowing of Rs 4,813 crore followed by Karnataka with Rs 4,509 and Gujarat (4,352), as per the Finance Ministry.
-RJV
