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

Portrait of a scholar-activist as a young student

[Kancha Ilaiah Shepherd, scholar and dalit activist, has penned his autobiography which is more than just the life-story of an individual but promises to become a document for a generation and a community. We reproduce below an excerpt, with the permission of the publishers, where he talks about his yo

Informal power

Villages without power supply are easy to find though the government says there are none. The lines are laid, but many villagers are too poor to pay for electricity. BPL (below poverty line) families, entitled to free supply, are waived the installation charge. But they don’t have money to wire their

Vande Bharat halts midway near Tundla

In a major embarrassment to the railways, the much touted Vande Bharat Express developed a technical snag at Chamraula, 15 kms from Tundla junction.   Prime Minister Narendra Modi flagged off the train on Friday from New Delhi station.    The train was

PM flags off India’s first semi high-speed train

Indian Railways entered a new era as prime minister Narendra Modi on Friday flagged off the country’s first semi high-speed train, Vande Bharat Express, from the New Delhi railway station. The new train is also seen as a success story of the NDA government’s ‘Make in India’

Estonia eyes on more e-Residents from India to open startups

Riho Kruuv, Ambassador of the Republic of Estonia talks to Vishwas Dass on key issues like the importance of e-Residency programme of the Government of Estonia and why Estonia is becoming a preferred investment destination for Indian startups and budding entrepreneurs. The Ambassador says Estonia offer

Happily working away!

There’s no dearth of self-help books. They come in a multitude of single-topic and hybrid varieties: habit change, management, habit change in management, spirituality, spirituality in management...you get the drift. Happiness at Work: Mindfulness, Analysis, and Well-Being, by R Anand, adds to the li

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter