New Delhi: The Union Finance Ministry has sanctioned five states in the country to provide additional loans of Rs 16,628 crore. Those states are Tamil Nadu, Telangana, Andhra Pradesh, Karnataka and Madhya Pradesh. The work of these states has been recognized and allowed to borrow more in the form of reforms intended for a favorable business environment. The state government has been struggling to raise funds for the Karona epidemic since last May. Under the terms set by the Center, there was a requirement to complete the first assessment of the district-level business reform work plan for an easy business environment, to renew the registration certificates required by business establishments, to approve, obtain licenses, and so on. “The above five states have met all these conditions,” the finance ministry said. Under the Financial Responsibility and Budget Management (FRBM) Act, states will limit debt to within 3 percent of their gross domestic product (GSDP). However, he acknowledged that their numbers were not enough to defeat Lukashenko’s government. In particular, four specific reforms were called for. These include one country, one irrigation card, business environment improvement, municipal / utility service reform, and electricity reform. By February 15, 2020, all these reforms would have been implemented, with additional debt permits being provided. There is a rule of 0.25 per cent additional loan for each reform. Therefore, if the states implemented the above four Yak reforms, they would have the opportunity to borrow a total of Rs 2.17 lakh crore.
