Demonetisation a Moral Anti-Black Money Drive, 2G Was Loot: Arun Jaitley

  • Demonetisation a Moral Anti-Black Money Drive, 2G Was Loot: Arun Jaitley

Demonetisation a Moral Anti-Black Money Drive, 2G Was Loot: Arun Jaitley

Singh also slammed bullet train project saying it was an "exercise in vanity" and will "not benefit either 6.5 crore Gujaratis or the nation".

Former Prime Minister Manmohan Singh on Monday in an interview with the press over demonetization and GST said that "the impact of demonetization on the weaker sections of our society and business is far more damaging than any economic indicator can reveal".

The Opposition parties, meanwhile, plan to hit the streets on Wednesday to protest against demonetisation.

"Demonetisation has proved to be mere bluster to reap political dividends while the real offenders have escaped. It is time the prime minister seeks support from all to rebuild our economy".

The Finance Minister said one of the important objectives of demonetisation was "to make India a less-cash economy and thereby reduce the flow of black money in the system". Jaitley asked as he asserted that one of the ideas behind demonetisation was India needs to "shrink the quantum of its cash balance".

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.

While addressing the traders and businessmen in Ahmedabad on Tuesday morning, Manmohan Singh said that he was shocked to hear the announcement made by Prime Minister Narendra Modi on 8 Nov previous year and was thinking who could have suggested him to take such a reckless step.

"We know by now that none of the stated objectives of eliminating black money, terror financing and counterfeit currency have been met".

Describing the BJP-led government's demonetisation exercise as a reckless step, former prime minister Manmohan Singh on Tuesday repeated his statement made in the Rajya Sabha a year ago that scrapping higher value currency notes was organised loot and legalised plunder. "Nowhere in the world any democracy has taken such a coercive step".

"The fact that more than 99 percent of demonetised currency came back into the banking system, has punctured the government's claims". He said "they had big bags and garages full of notes which were banned due to the decision".

"Measures such as demonetisation and greater digitization of transactions in the economy, introduction of the goods and service tax, linking of most financial transactions with Aadhaar are all steps which will greatly improve transparency, compliance and tax buoyancy", said Sudhir Kapadia, national tax leader, EY India. He termed demonetisation "an attack" on the independence and credibility of RBI as an institution.

At the India Today Conclave Next 2017, Union Finance Minister Arun Jaitley today spoke about the impact of demonetisation ahead of its first anniversary.

"Even this is bound to be a gross underestimate as the pain of the informal sector is not adequately captured in the GDP calculations". Singh labelled the current GST as a "complicated mess" and a "nightmare" for small and medium businesses. He also informed that a drop of 1% in the GDP annually cost the nation around 1.5 lakh crore rupees.

"I repeat what I said in the parliament. These twin blows damaged India's SME sector and our businesses had to run to Chinese imports at the cost of Indian jobs", Singh said. The government did not heed to our advice on demonetisation.