The centre recently went above and beyond its bounds to show progress in executing four significant reforms, including seeding Aadhaar-based distribution cards and the direct transfer of earnings to farmers in states where they received free electricity.
Kerala, Goa, and Uttarakhand are the prominent states that have adopted all four reform initiatives. In contrast, Andhra Pradesh, Orissa, Madhya Pradesh, and Telangana have adopted at least three of the four measures. According to sources, West Bengal has refused to cooperate, and Maharashtra has also declined to request a rise in borrowing limits.
By deploying country distribution card schemes, digitising licence renewals under 12 commercial regulations, and inspecting select industries, four sets of reform initiatives reduce government discretion to facilitate trade. It also introduced a randomised procedure to streamline power subsidies to farmers via DBT and property and sewerage taxes for urban local governments.
Each of these factors contributes 25% to the approval of increased borrowing limits in the matrix. So far, 37,600 rupees have been approved for the nationalised distribution card system, and 39,521 rupees have been approved for the ease of business law enforcement.
Unlike the capital expenditures programme under Aatma Nirbhar Bharat, which is connected to a specific capital-intensive project, the state is free to employ the borrowed funds for any reason once approved.