Rajasthan becomes 5th to complete Urban Local Bodies reforms; gets fund permission of Rs 2,731 cr

New Delhi, Jan 29: Rajasthan has become the 5th state in the country to successfully undertake Urban Local Bodies (ULB) reforms stipulated by the Department of Expenditure, Ministry of Finance. It has now become eligible for additional reform linked to borrowing.

 

 

 

Due to this, the state has been granted permission by the Department of Expenditure to mobilize additional financial resources of Rs.2,731 crore. The state will get this amount through Open Market Borrowings.

 

Other states that have completed the Urban Local Bodies Reforms - Manipur, Andhra Pradesh, Madhya Pradesh, and Telangana. In total, these five states have been granted total additional borrowing permission of Rs. 10,212 crore after completing the reforms.

 

The Reforms in the Urban Local Bodies and urban utilities reforms were done with the aim of strengthening the finance of the ULBs in the states. It also seeks to enable the states to provide better public health and sanitation services. Once the ULBs are economically rejuvenated they will be able to create good civic infrastructure.

 

The states are required to notify floor rates of property tax in ULBs as well as the floor rates of user charges with respect to the provision of water supply, drainage, and sewerage. They need to place a system of periodic increases in floor rates of property tax or user charges with respect to the price increases.

 

Amid the pandemic, the government had identified four citizen-centric areas for reforms in order to meet the demand of resources. Those areas include- the Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body or utility reforms, and Power Sector reforms.

 

10 States have implemented the One Nation One Ration Card System, 7 States have worked on the ease of doing business reforms while 5 States have implemented the local body reforms, so far.