20 states complete ease of doing business reforms, eligible for additional borrowing

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As many as 20 states have efficiently accomplished ease of doing business reforms, the Finance Ministry stated on Saturday. States finishing the reforms are eligible for additional borrowing of 0.25 per cent of Gross State Domestic Product (GSDP).

“The number of States who have successfully completed the ‘Ease of Doing Business’ reforms has reached to 20. Five more states namely, Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura have completed the ‘Ease of Doing Business” reforms stipulated by the Department of Expenditure,” the Ministry stated in a press release.

The Department of Expenditure has granted permission to those 20 States to lift additional monetary sources of Rs 39,521 crore by Open Market Borrowings.

The ease of doing business is a vital indicator of the funding pleasant business local weather within the nation. Improvements within the ease of doing business will allow sooner future development of the state economic system.

Therefore, the federal government of India had in May 2020, determined to hyperlink grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business, the Ministry added.

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