Demonetisation boosted economy: CM

Source: The Hitavada      Date: 09 Nov 2017 09:48:02


Special Correspondent,

Terming demonetisation as a major boost for Indian Economy, Maharashtra Chief Minister Devendra Fadnavis claimed that Bharatiya Janata Party (BJP) led National Democratic Front Alliance Government under the leadership of Prime Minister Narendra Modi had succeeded in curbing black money in the country. Country has moved on to a much cleaner, transparent and honest financial system, Fadnavis asserted while dismissing the detractors of demonetisation. Benefits of these may not yet be visible to some people, he remarked while taking pot-shots at political rivals.

Fadnavis, while interacting with mediapersons at Ramgiri on ‘Anti-Black Money’ Day on Wednesday, confidently listed several benefits of demonetisation and refuted every single charge made against Prime Minister’s ambitious move to end black money and achieve the goal of less cash economy and free it from graft and ill-effects of overtly cash economy. The anonymous money has returned to banking system and informal sector has merged with formal sector and tax buoyancy demonstrates the positive impact of November 8 decision, he stated.

Common people supported the drive against black money in the country, Fadnavis stated while describing the criticism against note ban as politically motivated and by those who are in political oblivion.

Post-demonetisation, the demand and sales increased in several sectors giving a new boost to the GDP. Commenting on sharp criticism of the move by former Prime Minister Dr Manmohan Singh, who described demonetisation as organised plunder and monumental mismanagement, Fadnavis said that Dr Singh was well-known economist but the Indian economy miserably failed during his tenure and touched its nadir while Prime Minister Narendra Modi is writing a new chapter by bringing vibrancy and making Indian economy as fastest growing in the world.

Fadnavis cited reports of World Bank and other financial organisations to buttress his claim.
Replying to a question over Paradise paper leaks, he said, the Central Government has handed over a list of hundreds of people, who had stashed money in the foreign banks. Unlike UPA Government, which sat pretty over the black money report, the NDA government led by Modi has promptly constituted a committee to probe the paper leaks.
Fadnavis also said, the banking system has received Rs 15.28 lakh crore during this period of demonetisation.

Till now, this huge money was out of the system and government did not get any tax on it. Central Government has taken several steps to plug the generation of black money in the country. The Modi government had constituted a Special Investigation Team (SIT) to find out black money. The government has inked pacts with the different tax heaven countries for the disclosure of the stashed money of the Indian citizens in tax heavens. The Benami Properties Act has also been notified by the government.

The government has succeeded in reducing Rs 4 lakh crore form the cash circulation over this period due to promotion of digitization. This has also increased Digitised economy in the country, Fadnavis added. He said, the government has detected fishy transactions worth of Rs 2.69 lakh crore. This amount has been deposited in the banks and it is under scrutiny. The Income Tax has also began action against undisclosed money deposited in the banks accounts. The government has found out Rs 29,213 crore from search and seizure operations. During previous government regime, the total direct and indirect tax payers were 3 crore, now, the total tax payers have doubled and the number has reached upto 6.30 crore.

The government has cancelled registration 2.24 lakh shell companies. The Income Tax department has cracked whip against 1,150 shell companies and stopped the transaction of Rs 13,300 crore.
The information pertaining to 28,088 companies involving 49,910 bank accounts shows that these companies have deposited and withdrawn Rs 10,200 crore. Many of these companies are found to have more than 100 bank accounts – one company even reaching a figure of 2,134 accounts.
Chief Minister said, after demonetization more than one crore workers who were denied social security benefits in the form of EPF and ESIC contribution, were benefitted. The reduction in incidences of stone pelting, protests in J&K and naxal activities in affected districts are also attributed to the impact of demonetisation as these miscreants have run out of cash.

Fadnavis said, the petroleum products should also be included in the Goods and Services Tax (GST) but the state governments are currently opposing it. On the issue of District Central Co-operative Banks, he said, there is no proposal of merger of DCC banks into Apex banks. The government has formed a committee for the strengthening of the banks. Nagpur (District) BJP President Dr Rajiv Potdar was present.