Manipur 4th state to complete ULB reforms, gets nod for Rs 75 cr borrowing

at 2:12 pm
(Representational/file image)

New Delhi (NVI): Manipur has become the fourth state to successfully complete the Urban Local Bodies (ULB) reforms stipulated by the Ministry of Finance and become eligible to get additional financial assistance of Rs 75 crore through Open Market Borrowings.

The northeastern state has now joined the three other states namely Andhra Pradesh, Madhya Pradesh and Telangana, who have successfully completed the reforms.

“On completion of urban local bodies reform, these four states have been granted additional borrowing permission of Rs 7,481 crore,” the Ministry of Finance said in a statement.

Notably, reforms in the Urban Local Bodies and the urban utilities reforms are aimed at financial strengthening of ULBs in the states and to enable them to provide better public health and sanitation services, it added.

Also, economically rejuvenated ULBs will also be able to create good civic infrastructure.

The reforms stipulated by the Department of Expenditure under the Ministry includes the state concerns notifying floor rates of property tax in ULBs which are in consonance with the prevailing circle rates, and floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/ past inflation, the ministry noted.

Earlier on May 17, 2020, in view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the government enhanced the borrowing limit of the states by 2 percent of their Gross States Domestic Product (GSDP).

“Half of this special dispensation was linked to undertaking citizen centric reforms by the states,” the statement said, adding that, the states get permission to raise additional funds equivalent to 0.25 percent of GSDP on completion of reforms in each sector.

The four citizen centric areas identified for reforms were, Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body/ utility reforms and Power Sector reforms.

So far, 10 states have implemented the One Nation One Ration Card System, 7 states have done ease of doing business reforms, and 4 States have done local body reforms, the ministry further said.

The total additional borrowing permission issued to the states who have done the reforms stands at Rs 54,265 crore, it added.