Demonetisation: Execution could not have been better, says Arun Jaitley

"On the execution part, I don't think this could have been better executed than how it has been executed now," said Jaitley.

By: PTI | New Delhi | Published:November 18, 2016 9:51 pm
tax, taxation, tax system, tax policy, finance bill, finance ministry, tax statutes, budget, winter session, parliament, tax payer, tax clarity, taxpayer harassment, indian express column, india news Union Finance Minister Arun Jaitley. PTI Photo

Unfazed by criticism of the demonetisation move, Finance Minister Arun Jaitley on Friday said replacing 86 per cent of the currency in circulation with new bank notes could not have been executed in a better way than currently being implemented. Ten days after the government withdrew 1,000 and 500 rupee notes, he said the move will help banks lend at a cheaper rate to businesses, trade, agriculture and infrastructure while at the same time getting rid of the shadow economy.

“On the execution part, I don’t think this could have been better executed than how it has been executed now,” he
said at an ET Now event here. He said replacing such a large currency without any social unrest and any significant economic disruption was an “achievement”. “When currency replacement takes place, initial inconvenience takes place, but there is not a single major incident in the country. It’s moving smoothly as everyday passes by. The queues are getting smaller,” he said.

“In the next 1-2 weeks, we have to make sure currency reaches rural areas because that is where it’s required. This
is the largest currency exchange in the world probably in recent times.” Indian shopkeepers, traders and retailers, according to Jaitley, will realise that formal official trade is certainly superior way of doing business than just a shadow economy.

“It has its own pitfalls. And therefore by this shock therapy, everybody enters into cleaner system of economy. In
the long run, it will be welcome by all,” he said. Stating that there is not any parallel of such a large
decision in Indian history in several decades that was ethically and morally so correct, he said every honest man
felt that he had no reason to be worried. The decision has “popular support because there were people with crime money, black money or wealth accumulated by not paying taxes”.

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  1. J
    Jayo khan
    Nov 19, 2016 at 12:10 am
    A builder follows 60:40 ratio , .hence out of 40%in cash goes out to pay daily workers ,which he is allowed to do so by tax authorities and rest 20% goes for land acquisition along with white money . at end of day the said builder is free from black money. This is survey of I.T dept itself , hence govt was aware that big sharks have done their job very cleanly so was this action against poor s . shame
    Reply
    1. J
      Jayo khan
      Nov 18, 2016 at 11:46 pm
      As per reports it was found that builders, jewellers etc are maniting their cash books and accepting old money as they have window till 30/12. I.T dept did survey and found out the mechanism of doing so. But no action was taken to this act. Is I.T dept left to being just survey dept. Why I.t dept is not conducting raids and prosecution . pls FM reply
      Reply
      1. J
        Jayo khan
        Nov 18, 2016 at 11:48 pm
        Poor man in qs and Richie rich enjoying their party as usual. FM you have facilitated them by giving 2000rs notes that means less storage cost.
        Reply
        1. S
          sunny
          Nov 18, 2016 at 10:52 pm
          what a liar he is certainly it was done without proper planning
          Reply
          1. A
            anon
            Nov 18, 2016 at 8:16 pm
            I am all for this demonetization but it should help bring down the property prices. There will obviously be a huge opposition to this as a lot of powerful people have a lot at stake. But Modi should plummet on regardless. The voiceless people of India are with him if he succeeds and this will reflect in the elections (off course by success i mean the success in execution).
            Reply
            1. A
              Arun
              Nov 18, 2016 at 6:00 pm
              It is really misfortune some of our people lack Nationalism and Patriotism.They help Black money holders by exchanging their notes in banks after getting commission.It is duties of other people specially youths to come forward and expose such people and hand over to police authorities.Police and Income Tax authorities mush come forward and raid black holder's houses and places. Otherwise, no use of demonetization.
              Reply
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                avd
                Nov 18, 2016 at 6:31 pm
                It seems there are many supporters of the Black moneys holders who help them directly or indirectly to change their notes.Main problem with some Parties is if Modiji succeeds in unearthing black money in India then these parties would be isolated from Indian Politics.What to say more except condemn them.
                Reply
                1. B
                  Bijan Mohanty
                  Nov 18, 2016 at 6:16 pm
                  Jaitleyji, your job is seriously at stake because you were allegedly not consulted on demonetisation move. Now you are trying to cover up the dismal failure of RBI and banks.
                  Reply
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