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Notion that sound economic policies have no takers proved wrong: PM Modi

Prime Minister Narendra Modi on Tuesday hailed the execution of reforms in a "federal country of continental dimensions" and highlighted how they "moved ahead in the spirit of Centre-State bhagidari (collaboration)" amid the Coronavirus pandemic.

PM Modi: Notion that sound economic policies have no takers proved wrong-VPN
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New Delhi, First Published Jun 22, 2021, 2:57 PM IST
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Prime Minister Narendra Modi on Tuesday hailed the execution of reforms in a "federal country of continental dimensions" and highlighted how they "moved ahead in the spirit of Centre-State bhagidari (collaboration)" amid the Coronavirus pandemic.

In a blog post, Prime Minister Modi said, "For a large nation with complex challenges as ours, this was a unique experience. We have often seen that for various reasons, schemes and reforms remain un-operational often for years. This was a pleasant departure from the past, where the Centre and States came together to roll out public-friendly reforms in a short span of time amidst the pandemic. This was made possible due to our approach of Sabka Saath, Sabka Vikas and Sabka Vishwas."

Hailing the new model of reforms by conviction and incentives, the Prime Minister said he was thankful to all states who took the lead in ushering in these policies amidst tough times for the betterment of their citizens.

Prime Minister Modi said that the notion that sound economic policies have no takers had been proved wrong.

"The nudge for reform is rare in Indian public finance. This was a nudge, incentivising the states to adopt progressive policies to avail additional funds. The results of this exercise are not only encouraging but also run contrary to the notion that there are limited takers for sound economic policies," he said.

He informed that in the backdrop of the financial crunch seen across the world, Indian states were able to borrow significantly more in 2020-21 and raise an extra Rs 1.06 lakh crore in 2020-21. 
 
He informed that 23 states had availed of additional borrowings of Rs 1.06 lakh crore out of a potential of Rs 2.14 lakh crore.

The aggregate borrowing permission granted to states for 2020-21 (conditional and unconditional) was 4.5% of the initially estimated GSDP, the prime minister said.

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