The finance ministry has extended the deadline till February 15 for states to implement reforms like the one-nation one-ration card and for those in the power sector aiming to become eligible for additional borrowing in the current fiscal, a release said.

The Centre in May had decided to raise the borrowing limit of the states by 2 per cent of their GSDP, over and above the 3 per cent limit set under the Fiscal Responsibility and Budget Management Act. However, states were required to complete four specific reforms — one-nation, one-ration card, ease of doing business reform, urban local body/utility reforms and power sector reforms — by December 31, 2020, to get the benefits.

“The department of expenditure has extended the deadline for the states to complete citizen centric reforms in various sectors. Now, if the recommendation from the nodal ministry concerned regarding implementation of the reform is received by February 15, 2021, the state will be eligible for reform-linked benefits,” the finance ministry said.