Prime Minister Narendra Modi stated that the states were able to raise an additional ₹ 1.06 lakh Crore in 2020-21 due to the implementation of a set of special reforms that allowed for them to borrow more from the Centre.
This was revealed in a blog titled, "Reforms by Conviction and Incentives", where he stated that 23 states borrowed this amount from the potential rs 2.14 lakh crore.
He further wrote that this access to additional resources was made possible because of Centre-State bhagidaari (cooperation).
This came after in 2020, the Centre had announced that it had allowed for enhanced borrowing under the Aatmanirbhar Bharat package. An extra 2 per cent of Gross Domestic Product of states was allowed, of which 1 per cent was conditional to the implementation of certain economic reforms.
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