Chandigarh, May 27 (IANS): With Punjab staring at 30 per cent shortfall in revenue receipts in the 2020-21 fiscal, the Council of Ministers on Wednesday gave in-principle approval to a slew of reforms to make the state eligible for additional borrowing of 1.5 per cent of the Gross State Domestic Product (GSDP) amid coronavirus crisis.

A committee will be set up to ensure proper monitoring of the implementation of the reforms, of which the administrative departments will ensure completion within the time frame stipulated by the Centre, since the additional borrowing limit is available only for this fiscal.

The Cabinet meeting, chaired by Chief Minister Amarinder Singh, also accorded in-principle approval to amend the Punjab Fiscal Responsibility and Budget Management Act, 2003, accordingly.

It authorised the Chief Minister to okay the final draft as approved by the Legal Remembrancer.

A spokesperson for the Chief Minister's Office said the government of India on May 17 had decided to permit additional borrowing limit of up to two per cent of the GSDP by the states in 2020-21.

However, the relaxation in borrowing limits is partly unconditional to the extent of 0.5 per cent only, and partly conditional to the implementation of reforms such as 'one nation, one ration card' system, ease-of-doing business, as well as reforms in the urban local bodies and power sectors.