PANAJI
Goa got another feather in its cap when it became the sixth State in the country to successfully undertake Urban Local Bodies (ULB) reforms stipulated by the Department of Expenditure, Ministry of Finance.
With this, the State has become eligible to mobilise additional financial resources of Rs 223 crore through Open Market Borrowings (OBMs).
Goa has joined five other States namely -- Andhra Pradesh, Madhya Pradesh, Manipur, Rajasthan and Telangana -- who have also completed ULB reforms. On completion of this set of reforms, these States have been granted a total additional borrowing permission of Rs 10,435 crore.
Reforms in ULBs and the urban utilities reforms are aimed at financially strengthening ULBs 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.
The objectives of these reforms stipulated by Department of Expenditure are that the State will notify floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions).
Also, the State will be in a position to notify floor rates of user charges in respect of water-supply, drainage and sewerage which reflect current costs/past inflation.
The State can also put in place a system of periodic increase in floor rates of property tax/ user charges in line with price increases.
In view of the resource requirement to meet multiple challenges posed by the Covid pandemic, the Centre had on May 17, 2020 enhanced the borrowing limit of the States by 2 per cent of their GSDP.
Half of this special dispensation was linked to undertaking citizen centric reforms by the States. The four citizen centric areas for reforms identified by the Department of Expenditure were Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body/ utility reforms and Power Sector reforms.
Till date, 17 States have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions.
