On DeMo, yet another goal post change

FM counts benefits which happen to be different from original objectives

GN Bureau | June 1, 2017


#Finance Minister   #Finance Ministry   #Arun Jaitley   #Narendra Modi   #Demonetisation   #Economy  
  Arun Jaitley, union minister for finance, corporate affairs and defence, addressing a press conference on the achievements of the ministry of finance during 3 years of NDA government
Arun Jaitley, union minister for finance, corporate affairs and defence, addressing a press conference on the achievements of the ministry of finance during 3 years of NDA government


Some think there is only one way to score a bull’s eye, by hitting the bull’s eye. Then there are creative souls, who first shoot, and then draw a bull’s eye around the mark.
 
When it was announced, demonetisation was supposed to counter (a) black money, (b) terrorism, and (c) counterfeits. Prime minister Narendra Modi’s November 8 Address to the Nation does not mention the word ‘cashless’.
 
Addressing the press on the completion of three years of the NDA government, finance minister Arun Jaitley on Thursday counted three benefits of demonetisation: (a) increase in cashless transactions, (b) increase in the taxpayer base, and (c) the message that it’s not safe to have cash transactions.
 
Of course, the two benefits on the tax aspect (b and c) are part of the drive towards eliminating unaccounted money – but they could’ve been achieved without subjecting the 1.2 billion people to untold suffering. The first benefit, drive towards cashless transaction, is welcome, but again it did not need such grave push, and it is already petering out too.
 
Indeed, demonetisation is blamed for a slowing down of the economy: Wednesday’s CSO announcement put the GDP growth in the quarter ending in March 2017 at 6.1 – lowest in this government’s term. This is something many economists and opposition leaders including former prime minister Manmohan Singh had feared.
 
However, the government is not ready to believe. Jaitley told the press that some slowdown was visible even prior demonetisation. Since GDP growth rate in the previous quarter was a healthy 7.0, it would need some torture of selective data to find that slowdown – not to mention the explanation of the fact that this slowdown has been spoken of only now and not before.

Comments

 

Other News

New study tracks heat wave; exposes dangerous trends in big cities

An unprecedented heat wave has been enveloping Indian cities, worsening the urban heat island effect, this summer. A new analysis by Centre for Science and Environment (CSE) says there are far deeper and longer term evidences on the nature of this changing trend that is impacting the biggest cities of the

Phase 6: Voter turnout 59.06% at 7:45 PM

Polling in the sixth phase of General Elections 2024 which commenced across 58 PCs recorded an approximate voter turnout of 59.06% as of 7:45 pm Saturday. In spite of hot weather in certain parts of the country, voters were undeterred in their enthusiasm as they were seen queuing up patient

Banks not adhering to RBI guidelines, finds study

Banks across India are levying inconsistent service charges on basic savings accounts. A study, “Benchmarking Reasonableness of Service Charges by Banks in India”, uncovers and exposes inconsistencies in adherence to RBI mandates by banks. It finds some banks impose charges exceeding reasonable

“Mumbai Infra boom similar to that of Manhattan in 19th C”

Mumbai’s ongoing infrastructure boom – with a new coastal road, Atal Setu, metro lines and much more – creating transport corridors – is comparable to that of Manhattan in New York during 1811-1870, according to BMC commissioner Bhushan Gagrani. The iconic projects being implemented

Global Gandhi: How the Mahatma captured the world’s imagination

Gandhi’s Australia, Australia’s Gandhi By Thomas Weber Orient BlackSwan, 348 pages, Rs 1,800  

Urban apathy in Mumbai, Maharashtra sees 49% voting

Polling in the fifth phase of General Elections 2024 which commenced at 7 am on Monday simultaneously across 49 PCs recorded an approximate voter turnout of 57.47% as of 7:45 pm. Voters came out in large numbers braving hot weather in many parts of the states that went for polls on Monday.

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter