Centre grants Rs 4,898 crore of reform-linked additional borrowing limit to Andhra and MP
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While AP received permission to mobilise Rs 2,525 cr through market borrowings, MP can raise an additional Rs 2,373 cr, according to a finance ministry statement. The move was part of the reform-linked additional borrowing of 2% of GSDP for pandemic-related expenditures, provided by the Centre as part of the Atmanirbhar Bharat package announced in May.
The Centre granted an additional borrowing limit of Rs 4,898 crore to Andhra Pradesh (AP) and Madhya Pradesh (MP) for the implementation of urban local body (ULB) reforms, on Wednesday.
While AP received permission to mobilise Rs 2,525 crore through market borrowings, MP can raise an additional Rs 2,373 crore, according to a finance ministry statement.
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Andhra, MP take lead in local body reforms, get additional borrowing
By IANS |
Published on
Wed, Dec 23 2020 15:21 IST |
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Finance Ministry. (File Photo: IANS). Image Source: IANS News
New Delhi, Dec 23 : Andhra Pradesh and Madhya Pradesh have taken the lead in undertaking the Urban Local Bodies (ULB) reforms as specified by the Union Finance Ministry for allowing states additional borrowing under a special dispensation.
To motivate the states to undertake reforms in various citizen centric sectors, the ministry has linked a part of additional borrowing permission granted to the States to completion of reforms.
In view of the resource requirement to meet the challenges posed by the Covid-19 pandemic, the Centre had on May 17, 2020 enhanced the borrowing limit of the states by two per cent of their Gross States Domestic Product (GSDP).