PM Modi should acknowledge demonetisation blunder on Nov 8: Manmohan Singh

PM Modi should acknowledge demonetisation blunder on Nov 8: Manmohan Singh

PM Modi should acknowledge demonetisation blunder on Nov 8: Manmohan Singh

Jaitley, however, acknowledged that the "benefits may not be immediately visible" but would make future generations proud.

Responding to critics of demonetisation, the Finance Minister said his government did not claim that note ban will put an end to corruption once for all, but it was certain that reducing the circulation of cash in the system had made indulging in corruption a very hard proposition. The fact that more than 99 per cent of the demonetised currency came back into the banking system, has punctured the government's claims. He wondered if raising questions about bullet trains made one anti-development or questioning GST or demonetisation made one a tax evader.

"Demonetisation, poor implementation of GST (goods and services tax) and the rise of tax terrorism under the guise of controlling corruption have seriously damaged the investment climate for small businesses", Singh added.

He said while the demonetisation had reduced economic growth to 5.7 per cent, it was still "bound to be a gross underestimate as the pain of the informal sector is not adequately captured in the calculation of the GDP".

Dwelling on it further, the two-term prime minister explained how none of the stated objectives of eliminating black money, terror-financing and counterfeit currency, have been met. "Instead of providing relief to the poor and the marginalized farmers, traders and small and medium businesses, the government chose to inflict on them a badly designed and hastily implemented GST". The unprecedented growth in imports from China can be attributed to demonetisation and GST. This attitude of suspecting everyone to be thief or anti-national and, low level rhetoric is damaging to democratic discourse'. "Political leaders must stick to the high end". "Manmohan Singhji has said that note ban was a dacoity". Finance minister Arun Jaitley defended the move, saying demonetisation was a watershed moment that had not only worked to curb illegal wealth creation, but also spurred the creation of a less-cash economy.

Fielding Singh in Gujarat just a day before the one year anniversary of the note ban exercise was a masterstroke by the grand old party, considering Congress vice president Rahul Gandhi's continued offensive against GST and demonetisation has hit the right chord with Gujaratis, whose business have suffered immensely because of central government's policies. "The unending notifications and changes, a repeat of the chaos of demonetisation, have caused needless confusion". It can not be, but it did change the agenda. "With the return of Rs 15.28 lakh crore in the formal banking system, nearly entire cash holding of the economy now has an address".

The central government also came under a sharp attack from West Bengal Chief Minister Mamata Banerjee who changed the display picture of her Twitter account to black in a protest against note ban.

His remarks came at a press conference on the eve of the first anniversary of the controversial note ban under which currency of Rs 500 and Rs 100 were discontinued as legal tender on November 8 previous year.

Maintaining that demonetisation also led to a big leap in digital payments, he said as many as 110 crore transactions, valued at around Rs 3.3 lakh crore, and another 240 crore transactions, valued at Rs 3.3 lakh crore, were carried out through credit cards and debit cards respectively.

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