Finance Ministry extends deadline for states to implement reforms to avail additional borrowing

 The Finance Ministry has broadened the cutoff time till February 15 for states to actualize changes like one-country one proportion card and those in the force area to get qualified for extra getting in the current monetary, a delivery said. 

To meet the additional asset necessities of states because of COVID-19 pandemic, the Center in May had chosen to raise the obtaining furthest reaches of the states by 2 percent of their GSDP, well beyond the 3 percent limit set under the Fiscal Responsibility and Budget Management (FRBM) Act. 

Nonetheless, states were needed to finish four explicit changes - execution of one country one apportion card, simplicity of working together change, metropolitan nearby body/utility changes and force area changes - by December 31, 2020, to get the advantages. 

Such states would get the office of extra obtaining equal to 0.25 percent of their Gross States Domestic Product (GSDP) for finishing each change. Under this office, extra acquiring of up to Rs 2.14 lakh crore is accessible to the states on finish of the relative multitude of four changes. 

"The Department of Expenditure has broadened the cutoff time for the states to finish resident driven changes in different areas. Presently, if the proposal from the nodal Ministry concerned with respect to usage of the change is gotten by February 15, 2021, the state will be qualified for change connected advantages," the Finance Ministry said in a proclamation on Wednesday. 


So far nine states have actualized the one country one proportion card framework, four states have finished the simplicity of working together changes and one state has done the metropolitan neighborhood body/utility changes. 

"Extra obtaining consent of Rs 40,251 crore has been conceded to these states. Expansion of the date for consummation of changes is probably going to rouse different states likewise to finish the change cycle quickly and profit the connected monetary advantages," the service added.

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