Citizen Centric Reforms
Why in News?
- The Department of Expenditure, Ministry of Finance, has extended the deadline for the States to complete citizen centric reforms in various sectors.
- Now, if the recommendation from the nodal Ministry concerned regarding implementation of the reform is received by 15th February, 2021, the State will be eligible for reform linked benefits.
The Government of India has identified four critical areas for reforms by the States:
- Implementation of One Nation One Ration Card System,
- Ease of doing business reform,
- Urban Local body/ utility reforms and
- Power Sector reforms.
- States successfully completing the reforms are eligible to get two benefits.
- Such States get the facility of additional borrowing equivalent to 0.25 percent of their Gross States Domestic Product (GSDP) for completing each reform.
- Under this facility, additional borrowings of up to Rs.2.14 lakh crore is available to the States on completion of all the four reforms.
- The second benefit available to the States completing three out of the four reforms is additional funds assistance under the “Scheme for Financial Assistance to States for Capital Expenditure”.
- Under the scheme, an amount of Rs.2,000 crore is earmarked for the States that will complete at least three out of the four stipulated reforms.