MMS calls currency chaos organized loot, Jaitley delivers stinging retort

Former PM urges Modi to come up with pragmatic ways to relieve people’s distress. Jaitley says it is disappointing to hear from people who were in charge when most black money was generated

GN Bureau | November 24, 2016


#Arun Jaitley   #Winter Session   #Parliament   #Rajya Sabha   #black money   #corruption   #economy   #politics   #Manmohan Singh   #Narendra Modi   #Demonetisation  


Former prime minister Manmohan Singh and finance minister Arun Jaitley sparred over demonetization in parliament on Thursday. Manmohan spoke of the “monumental management failure” in implementation as well as adverse impact on the economy, while Jaitley countered: “We were not surprised when we heard from those who ran the government between 2004 and 2014 that they didn't like these anti-black money steps. The maximum black money was generated in the country between 2004 and 2014”.

Manmohan Singh – who is, it should be noted here, former RBI governor as well former finance minister – in his short address repeated clarified in his usual mild-manner way that it was not his intention to condemn the move. He, however, in his bullet-point-like intervention, made the following criticisms:

* It has been said that the long-term effects for the economy will be beneficial, but as economist John Maynard Keynes has said, in the long term all of us are dead.

* Sixty to 65 people have lost lives [standing in queues and battling chaos in the aftermath of the currency ban].

* Can the prime minister name any country where people are not allowed to withdraw from their banks their own money?

* In my opinion, this move will hurt small industries and the informal sector. Ninety percent people work in the informal sector. Fifty-five percent people are employed in agriculture. They are hurt.

* GDP can [can] go decline by 2 percent – and this is an underestimate, not overestimate.

* The PM must come up with constructive proposals on how to implement this scheme. I Urge the PM to come up with practical and pragmatic measures to relive the distress suffered by the people.

* Every day new modifications are being announced which do not reflect well on the PM, the finance minister and the RBI.

* Cooperatives banks which have deep presence in rural areas are not allowed to handle [the scheme].

* This is a monumental management failure. It is nothing less than organised loot and legalized plunder.

Finance minister Arun Jaitley retorted, "It is disappointing to hear from people who were in charge of the government when the most black money was generated, most corruption scandals came to the fore.”

 "We were not surprised when we heard from those who ran the government between 2004 and 2014 that they didn't like these anti-black money steps. The maximum black money was generated in the country between 2004 and 2014. Commonwealth Games scandal, the 2G corruption scandal, the coal block scandal all took place during this period."

Jaitley went on to say that the Congress is "manufacturing reasons" to run away from the debate, instead of engaging with the government in a debate over demonetization.

To Manmohan Singh’s assessment that demonetisation will adversely impact the GDP, Jaitley said, "As far as the medium and long term impact on the economy is concerned, including on India's GDP, it is going to be a positive impact. Lot of money that operates in the shadow economy will now be a part of banking structure. The banks will have a lot more to support the economy. The private sector investment which was so far lacking will now be back into the economy."

The finance minister added that the banks which were till now struggling because of the NPA problem would have a lot more money to lend for agriculture, infrastructure, social sector and the possibility of banks lending at lower cost would also rise.

Comments

 

Other News

Making sense of India’s elections

With highly appropriate lyrics at the start of every chapter, combined with deep insights from rigorous analysis of data – Citizen Raj is an absolute delight to read.    In Citizen Raj, Surjit Bhalla, well known economist and commentator, looks at Indian elections from

GAIL expedites Jagdishpur-Haldia and Bokaro-Dhamra pipeline project work

 Stepping up the momentum for construction of the Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL) and Barauni – Guwahati Pipeline (BGPL) pipeline, GAIL (India) has winded up finalising awards for Rs 10,500 crore contracts for pipe supply and laying of the integrated 3,400 km-lo

Life without land, land without life

People stare at the barren fields. They remember how green this stretch was, what a dense jungle there was, even if it is difficult for a visitor to imagine so. This land once supported its people, providing them enough opportunity to earn from their labour. Today, the stretch lies unused, a constant rem

Mandovi and Konkankanya express trains get German LHB coaches

To ensure safety of passengers and better comfort, Konkan Railway has decided to replace the old coaches of Madgaon Junction-Mumbai CSMT Mandovi express and Madgaon Junction-Mumbai CSMT Konkankanya express with German LHB design coaches.   The LHB coaches have been designed for i

54,000 towers installed by BSNL in 2018-19 FY

State run BSNL has installed 54,000 telecom towers in the recently concluded 2018-2019 fiscal, which is higher than the combined figures of the previous three financial years.   BSNL claimed that over 50 lakh subscribers have ported their number to BSNL from other operators in 20

Pulwama gets high speed internet service ‘Bharat Fibre’

BSNL has recently rolled out its premium ‘Bharat Fibre’ service in Pulwama town in the Kashmir Valley.   Bharat Fibre service delivers high speed internet and high quality voice services to its customers. The customer can chose from various unlimited data with unlimit

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter