Ease of doing business improves the investment climate
Rajasthan has become eligible to mobilise additional financial resources of Rs.2,731 crore through Open Market Borrowings on being recognized as the sixth state in the country to have undertaken “Ease of Doing Business” reform stipulated by the Department of Expenditure, Ministry of Finance.
The ease of doing business is an important indicator of the investment-friendly business climate in the country, the Finance Ministry said on 26 Dec 2020, having given permission for borrowing on 24 Dec 2020.
Improvements in the ease of doing business will enable faster future growth of the state economy. Therefore, the Government had in May 2020, decided to link the grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business.
The reforms stipulated in this category are:
Completion of the first assessment of ‘District Level Business Reform Action Plan’;
Elimination of the requirements of renewal of registration certificates, approvals and licences obtained by businesses under various Acts;
Implementation of computerized central random inspection system under the Acts wherein allocation of inspectors is done centrally, the same inspector is not assigned to the same unit in subsequent years, prior inspection notice is provided to the business owner, and the inspection report is uploaded within 48 hours of the inspection.
In view of the resource required to meet the challenges posed by the COVID-19 pandemic, the Government had on 17 May 2020 enhanced the borrowing limit of the States by 2% of their GSDP. Half of this special dispensation was linked to undertaking citizen-centric reforms by the States.
The four citizen-centric areas for reforms identified were (a) Implementation of One Nation One Ration Card System, (b) Ease of doing business reform, (c) Urban Local body/ utility reforms and (d) Power Sector reforms.
Rajasthan has now joined Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu and Telangana.
On completion of reforms facilitating ease of doing business, these six States have been granted additional borrowing permission of Rs.19,459 crore.
So far 10 States have implemented the One Nation One Ration Card System, six States have done ease of doing business reforms, and two States have done local body reforms. Total additional borrowing permission issued so far to the States who have done the reforms stands at Rs.50,253 crore. #investment #FDI #banking /fiinews.com