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Rajasthan becomes 6th State to complete Ease of Doing Business reforms
State gets additional borrowing permission of Rs 2,731 crore
New Delhi, December 27, 2020
Rajasthan has become the sixth State in the country to successfully complete the “Ease of Doing Business” reforms becoming eligible to mobilise additional financial resources of Rs 2,731 crore through Open Market Borrowings.
The Department of Expenditure granted the permission on December 24, an official press release said.
Additional borrowing permission of Rs. 19,459 crore has been granted so far to Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Telangana, apart from Rajasthan.
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 Union Government had, in May 2020, decided to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business. The reforms stipulated in this category are the completion of the first assessment of District Level Business Reform Action Plan; Elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various Acts; Implementation of a computerized central random inspection system under the Acts wherein allocation of inspectors is done centrally.
The same inspector is not assigned to the same unit in subsequent years, prior inspection notice is provided to the business owner and inspection report is uploaded within 48 hours of the inspection.
In view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the Union Government had, on May 17, 2020, enhanced the borrowing limit of the States by 2% of their GSDP. Half of this special dispensation was linked to undertaking citizen-centric reforms by the States. The four citizen-centric areas for reforms identified were (a) Implementation of One Nation One Ration Card System, (b) Ease of doing business reform, (c) Urban Local body/ utility reforms and (d) Power Sector reforms.
So far, 10 States have implemented the One Nation One Ration Card System, 6 States have completed ease of doing business reforms, and 2 States have completed local body reforms.
Total additional borrowing permission issued so far to these States stands at Rs 50,253 crore, the release added.