Amid a world monetary disaster because of the Covid-19 pandemic, states raised an additional Rs 1.06 lakh crore in 2020-21, which was made potential by an method of Centre-state bhagidari, Prime Minister Narendra Modi wrote in an article on social media on Tuesday.
In a LinkedIn article titled ‘Reforms by Conviction and Incentives’, PM Modi mentioned India’s financial response and options to the pandemic. “Overall, 23 states availed additional borrowings of Rs. 1.06 lakh crores out of a potential of Rs. 2.14 lakh crores. As a result, the aggregate borrowing permission granted to states for 2020-21 (conditional and unconditional) was 4.5% of the initially estimated GSDP,” PM Modi stated.
On “innovative” policymaking within the time of Covid-19, PM Modi listed widespread traits of 4 reforms to which extra borrowings had been linked. “Each of the reforms was linked to improving the Ease of Living. Secondly, they also promoted fiscal sustainability,” PM Modi wrote.
The Prime Minister added, “For a federal country of continental dimensions, finding policy instruments at the national level to promote reforms by state governments is indeed challenging. But, we had faith in the robustness of our federal polity.”
Here are 4 reforms talked about within the LinkedIn put up authored by PM Modi:
FIRST: The first reform below the ‘One Nation One Ration Card’ coverage required state governments to make sure that all ration playing cards below the National Food Security Act (NFSA) had been seeded with the Aadhaar quantity of all members of the family and that every one Fair Price Shops had Electronic Point of Sale units. “The main benefit from this is that migrant workers can draw their food ration from anywhere in the country. Apart from these benefits to citizens, there is the financial benefit from the elimination of bogus cards & duplicate members. 17 states completed this reform and were granted additional borrowings amounting to Rs. 37,600 crores,” PM Modi wrote.
SECOND: The second reform, geared toward bettering ease of doing enterprise, required states to make sure that renewal of business-related licences below seven Acts is made automated, on-line and non-discretionary on mere fee of charges. Another requirement was implementation of a computerized random inspection system and prior discover of inspection to cut back harassment and corruption below an additional 12 Acts. This reform (protecting 19 legal guidelines) is of specific assist to micro and small enterprises, who are suffering essentially the most from the burden of the ‘inspector raj’. It also promotes an improved investment climate, greater investment and faster growth. 20 states completed this reform and were allowed additional borrowing of Rs. 39,521 crores, the article stated.
THIRD: The third reform required states to notify floor rates of property tax and of water & sewerage charges, in consonance with stamp duty guideline values for property transactions and current costs respectively, in urban areas. This would enable better quality of services to the urban poor and middle class, support better infrastructure and stimulate growth. Property tax is also progressive in its incidence and thus the poor in urban areas would benefit the most. This reform also benefits municipal staff who often face delay in payment of wages. 11 states completed these reforms and were granted additional borrowing of Rs. 15,957 crores, PM Modi wrote.
FOURTH: The fourth reform was introduction of Direct Benefit Transfer (DBT) in lieu of free electricity supply to farmers. Thirteen states implemented at least one component, while six states implemented the DBT component. As a result, Rs. 13,201 crore of additional borrowings was permitted,” PM Modi said in the LinkedIn article.
Prime Minister Narendra Modi said the Centre and states came together to roll out public friendly reforms in a short span of time amid the pandemic. “This was made possible due to our approach of Sabka Saath, Sabka Vikas and Sabka VishwasIndia has seen a model of ‘reforms by stealth and compulsion’. This is a brand new mannequin of ‘reforms by conviction and incentives’,” PM wrote.