Demonetisation impact transient: Arun Jaitley

FM Arun Jaitley says the demonetised economy will lead to the higher taxes and increased revenues of the government

GN Bureau | February 1, 2017


#Universal Basic Income   #Demonetisation   #Narendra Modi   #Arun Jaitley   #Budget 2017  


Finance minister Arun Jaitley today invoked Mahatama Gandhi to justify the hardships faced by common people due to Narendra Modi Government’s decision of demonetisation of Rs 1,000 and Rs 500 currency notes. “Right cause never fails,” he quoted the father of the nation while referring to this in his budget speech.

READ | Demonetisation: Fifty days and still shaking


He said the demonetisation was a ‘bold and decisive economic move’ by the government to combat tax evasion, which had become a way of life and created a parallel economy. He, however, said the impact of demonetisation was ‘transient’ and every care was taken to make sure it does not spill into the new-year.

A demonetised economy, he said, would not only improve the GDP and lead to the higher taxes and increased revenues of the government. This would eventually lead to decreased cost of borrowings and increased economic activity.
 

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