Twenty states have completed the “ease of doing business” reforms stipulated by the department of expenditure, which would enable them to get an additional borrowing permission of Rs 39,521 crore through open market borrowings, the finance ministry said on Saturday.

“States completing ease of doing business reforms are eligible for additional borrowing of 0.25 per cent of the gross state domestic product (GSDP),” the ministry said.

“Accordingly, on receipt of recommendations from the department for promotion of industry and internal trade (DPIIT), the department of expenditure has granted permission to these 20 states to raise additional financial resources of Rs 39,521 crore through open market borrowings. State-wise amount of the additional borrowing permitted to these 20 states is annexed,” it said.

Five more states — Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura — have completed the “ease of doing business” reforms stipulated by the department of expenditure, it said.