Norms fixed for implementation of Ease of Doing Business (EoDB) in country to enable state-specific reforms

20 States allowed additional borrowing of ₹ 39,521 crore during 2020-21 for implementation of EoDB reform

The Union Government has fixed norms for implementation of Ease of Doing Business (EoDB) in the country to enable state-specific reforms. This was stated in a written reply by Union Minister of State for Finance Shri Pankaj Chaudhary to a question in Lok Sabha today.

The Minister stated that in order to strengthen resources in the hands of State Governments in the wake of unprecedented COVID-19 pandemic, the Union Government addressed to all the States, laid out an additional borrowing of 0.25% for each reform of the Gross State Domestic Product (GSDP) to the States for FY 2020-21 subject to implementation of following specific state level reforms:

1. Implementation of One Nation One Ration Card System;
2. Ease of Doing Business reform;
3. Urban Local body/ utility reforms and
4. Power Sector reforms.

The Minister stated that twenty (20) states were allowed additional borrowing of Rs 39,521 crore during 2020-21 for implementation of EoDB reform and it is a continuous process and its outcome would be visible in due course. The list of States that have completely implemented the reform on EoDB are below: -

S. No.	State /UT	Status on Implementation of EoDB Reforms
1	Andhra Pradesh	Fully Implemented.
2	Karnataka
3	Madhya Pradesh
4	Tamil Nadu
5	Telangana
6	Rajasthan
7	Kerala
8	Odisha
9	Himachal Pradesh
10	Haryana
11	Assam
12	Gujarat
13	Punjab
14	Arunachal Pradesh
15	Uttar Pradesh
16	Uttarakhand
17	Meghalaya
18	Chhattisgarh
19	Tripura
20	Goa

 

Ease of Doing Business reform enables additional state borrowing as incentive for implementing specified state-level reforms. The Union Government authorised conditional additional borrowing of 0.25% of GSDP per approved reform area to incentivise state-level reforms, including Ease of Doing Business (EoDB); twenty States were allowed additional borrowing during 2020-21 for completing the EoDB reform, and the scheme forms part of a package also covering One Nation One Ration Card, urban local body/utility reforms and power sector reforms.