consistent steps to impart support to the States in the challenging times of the pandemic?
Enhanced limit of borrowing for FY2020-21 under Atma Nirbhar Bharat package : Under the Atma Nirbhar Bharat package, additional borrowing limit of up to 2 percent of Gross State Domestic Product (GSDP) was allowed to the States, which was equivalent to ` 4.27 lakh crore. Of the additional 2 per cent borrowing allowed to the States, the first instalment of 0.5 per cent borrowing was untied for all the states. The second part amounting to 1 per cent of GSDP was subject to implementation of following four specific State level reforms, where weightage of each reform is 0.25 per cent of GSDP:- 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. Compensation to the States for loss in GST revenue: In order to compensate the states for the loss of GST revenue during FY 2020-21, Central Government had given the states an option to either borrow the sh...
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