Manipur Becomes 4th State to Complete ULB Reforms, Can Borrow Additional ₹75 Crore

Manipur has become the 4th State in the country to successfully undertake “Urban Local Bodies (ULB)” reforms stipulated by the Department of Expenditure, Ministry of Finance. Thus, the State has become eligible to mobilize additional financial resources of Rs.75 crore through Open Market Borrowings. Permission for the same was issued by the Department of Expenditure on January 11, 2021.

Manipur has now joined three other states namely, Andhra Pradesh, Madhya Pradesh, and Telangana which have already completed this reform. On completion of Urban Local Bodies reform, these four states have been granted additional borrowing permission of Rs 7,481 crore.

It is noteworthy that 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.

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 (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, 7 States have done ease of doing business reforms, and 4 States have done local body reforms. Total additional borrowing permission issued so far to the States who have done the reforms stands at Rs 54,265 crore.

Related Articles

Back to top button