Prime Minister Narendra Modi has written a blog on LinkedIn, mentioning how four reforms, brought about as part of the Aatmanirbhar Bharat package in May 2020 to mitigate the effect of Covid-19, were linked to improving the ease of living to the public, particularly the poor. the vulnerable and the middle class.The four reforms, PM Modi wrote, also promoted fiscal sustainability.(1.
) One Nation One Ration Card: This first reform required state governments to ensure that all ration cards in the state under the National Food Security Act (NFSA) were seeded with Aadhaar numbers of all family members, wrote Prime Minister Modi. The main benefit from this, according to the PM, is that migrant workers can draw their food ration from anywhere in the country. Another financial benefit from this is the elimination of bogus cards and duplicated numbers.Seventeen states completed this reform and were thus granted additional borrowings amounting to 37,600 crore.(2.) Improving ease of doing business: This second reform, wrote PM Modi, required states to ensure renewal of business-related licenses is made automatic, online and non-discretionary on mere payment of fees.
Another requirement was to implement a computerised random inspection system to reduce harassment and corruption. This reform, covering 19 laws, is most beneficial to small and medium businesses, and also promotes an improved investment climate, greater investment and faster growth.Twenty states completed this reform and got additional borrowings worth 39,521 crore.(3.) Notifying floor rates of property tax, water and sewage charges: PM Modi wrote that this third reform was to enable better quality of services to the urban poor, middle class, as well as to support better infrastructure and to stimulate growth. He added that this reform would benefit poor living in urban areas the most, and also help municipal staff who often face delay in payment of wages.
Eleven states which completed this reform were granted additional borrowings of 15,957 crore.(4.) Direct Benefit transfer (DBT): This fourth and final reform has 0.15% of gross domestic product (GDP) linked to it, wrote Prime Minister Modi.
He added that the addition of a component for reduction in technical and commercial losses, and another for reducing the gap between revenues and costs, improved the finances of distribution companies, promoted conservation of water and energy and improved service quality.From this, 23 states got additional borrowings of 1.06 lakh crores out of a possible 2.14 lakh crore.