Telangana gets additional borrowing permission of Rs 2,508 crore
Telangana has become third state in the country to successfully undertake urban local bodies reform stipulated by the Ministry of Finance, becoming eligible to mobilise additional financial resources of Rs 2,508 crore through open market borrowings.
Telangana has now joined Andhra Pradesh and Madhya Pradesh which have completed this reform, according to an official statement issued on Thursday.
On completion of urban local bodies reform, these three states have been granted additional borrowing permission of Rs 7,406 crore.
Reforms in urban local bodies (ULBs) and urban utility reforms are aimed at the financial strenghtening of ULBs in the state 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 May last year, the government had enhanced borrowing limit of the states by 2 per cent of their gross state domestic product (GSDP) to meet the challenges posed by Covid-19 pandemic.
Half of this special dispensation was linked to undertaking citizen-centric reforms by the states which 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 were implementation of One Nation One Ration Card system, ease of doing business reform, urban local body and 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 three states have done local body reforms.
The total additional borrowing permission issued so far to the states which have done the reforms stands at Rs 54,190 crore.