Syllabus Section: Polity and Governance

Why in News?

• Rajasthan has become the 5thState in the country to successfully undertake Urban Local Bodies (ULB) reforms stipulated by the Department of Expenditure, Ministry of Finance.

About the News:

• Rajasthan has joined four other States namely, Andhra Pradesh, Madhya Pradesh, Manipur and Telangana, who have completed ULB reforms.

• Rajasthan has thus become eligible for additional reform linked borrowing.

• The State has been granted permission by the Department of Expenditure to mobilize additional financial resources of Rs.2,731crore through Open Market Borrowings.

• The States get permission to raise additional funds equivalent to 0.25 percent of GSDP on completion of reforms in each sector. The four citizen-centric areas identified for reforms are:

o Implementation of One Nation One Ration Card System

o Ease of doing business reform

o Urban Local body/ utility reforms

o Power Sector reforms.

Significance :

• Reforms in ULBs and the urban utility reforms are aimed at financial strengthening of ULBs in the States and to enable them to provide better public health and sanitation services to citizens.

• Economically rejuvenated ULBs will also be able to create good civic infrastructure.

Source: PIB