Manipur has become the 4th state in the country to successfully undertake Urban Local Bodies or ULB reforms stipulated by the Department of Expenditure, Ministry of Finance.
Manipur has now become eligible to mobilise additional financial resources of 75 crore rupees through Open Market Borrowings.
Permission for the same was issued by the Department of Expenditure on January 11, 2021.
Manipur has now joined the three other states- Andhra Pradesh, Madhya Pradesh and Telangana- who have completed the ULB reforms.
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On completion of Urban Local Bodies or ULB reforms, these four states have been granted additional borrowing permission of seven thousand four hundred 81 crore rupees.
Reforms in the Urban Local Bodies and the urban utility reforms are aimed at financial strengthening of ULBs in the states and to enable them to provide better public health and sanitation services.
Economically rejuvenated ULBs will also be able to create good civic infrastructure.
In view of the resource required to meet the challenges posed by the COVID-19 pandemic, the Central government on May 17, 2020, enhanced the borrowing limit of the states by two per cent of their Gross States Domestic Product (GSDP).
Half of this special dispensation was linked to undertaking citizen-centric reforms by the states.
The states get permission to raise additional funds equivalent to 0.25 per cent of GSDP on completion of reforms in each sector.
The four citizen-centric areas identified for reforms are, Implementation of One Nation, One Ration Card System, Ease of doing business reform, Urban Local body or utility reforms and Power Sector reforms.
So far, 10 States have implemented the One Nation, One Ration Card System, seven states have done ease of doing business reforms, and four states have done local body reforms.
Total additional borrowing permission issued so far to the states who have done the reforms stands at 54 thousand two hundred 65 crore rupees.
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