Already saddled with crores in withdrawn notes, rural banks across state set to face increasing losses this year
RBI said in the report, for the year ended June 30, 2017, that only Rs 16,050 crore of the Rs 15.44 lakh crore in old high denomination notes had not returned
While a certain amount of extra spending can’t be ruled out, this has to be kept at a minimum. If it is not, the bond markets will get even more spooked than they are right now, interest rates will rise and, to that extent, will dampen whatever industrial activity there is right now.
Taxpayers under the new tax regime have increased by 50 per cent; 18 lakh new I-T filers since Nov 2016.
The numbers, however, need to be seen in the context of the very weak base quarter in Q3FY17 when the acute shortage of cash, following the withdrawal of high denomination notes, disrupted the economy.
It was also alleged that the bank officers replaced the original small cash books with new summary books which reflected false entries to accommodate the exchange of scrapped notes.
The Centre had banned high-value notes of Rs 500 and Rs 1,00o in a surprise move in November 2016.
A direct outcome of demonetisation is a sharp increase in 2017-18 in tax buoyancy (revenues per unit of growth). Given this ‘unexpected’ result, will the knee-jerk critics of demonetisation please stand down?
The reasons for their going up even during the height of demonetisation are as straightforward as the current sharp deceleration.
World Bank report: India, despite initial setbacks from demonetisation and Goods and Services Tax (GST), is estimated to have grown at 6.7 per cent in 2017, it added.
In the next Budget to be unveiled on February 1, the government could lower tax rate by 10 per cent on income between 5-10 lakh, levy 20 per cent rate for income between Rs 10-20 lakh and 30 per cent for income beyond 20 lakh rupees.
State minister Subodh Uniyal said Pandey’s action “looks politically motivated”.
‘We got a special trunk made to stock coins,’ says Rajiv Thaman
Pandey, who has been in the transport business for the past five years, blamed the Trivendra Rawat-led government and the Centre for loss in business due to demonetisation and GST
“When Manmohan Singh brought some reforms in 1991-92, our GDP was reduced to 1.8. In comparison to that, it’s an achievement that even after huge reforms like GST and demonetisation, our GDP didn’t face that reduction,” Rajiv Kumar said.