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
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      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).
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            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.
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              1. A
                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
                  1. D
                    Deepak
                    Nov 18, 2016 at 4:51 pm
                    It was entirely possible to install more ATM in areas that are remote. Also a website to show current line at each bank. Online token.
                    Reply
                    1. D
                      dd
                      Nov 18, 2016 at 9:53 pm
                      All problems are in states governed by TMC/Congress/CPIM/SP/JDU/AAP/Telangana parties..stead of helping their people they are making situation worst...They have option to give FREE seeds/FOOD/Clothes/Water/Ectricity/Home...All these FREE items in their election manifesto...
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                      1. D
                        dd
                        Nov 18, 2016 at 9:51 pm
                        Govt. is making change as they experience troubles and moving on...All changes are made after considering ground situations...
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                        1. R
                          Rahul
                          Nov 18, 2016 at 7:59 pm
                          Even Syria and Zimbabwe cannot boast of such a Finance Minister. The honour goes to one and only - Jhootley.
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                            Dr Kanayalal
                            Nov 18, 2016 at 4:44 pm
                            Modi Ji spelt out that black economy is the source of continuing poverty, policy failure and flight of capital. If the black economy is checked, the rate of growth of the economy would rise substantially and help reduce poverty. Terrorism is a source of constant tension for the public. If this is checked, the wasteful expenditure on the huge and growing police forces would decline and more would be available for development. No wonder many in the public are supporting the moves. The point is whether these objectives can be achieved via the demonetisation announced.
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                            1. T
                              T DUTTA
                              Nov 18, 2016 at 6:14 pm
                              DEMONETISATION SHOULD BE DONE EVERY 5 YEARS NOT ONLY FOR TACKLING BLACK MONEY BUT ALSO FOR TACKLING THE MENACE OF FAKE CURRENCY------[2] CARD SWIPING MACHINES SHOULD BE GIVEN TO SHOPKEEPERS AND VENDORS FOR CASHLES SYSTEM [3] CASHLESS SYSTEM IS THE BEST GUARANTEE AGAINST FAKE CURRENCY
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                              1. G
                                gc
                                Nov 18, 2016 at 7:05 pm
                                in 10 days, about 1/3rd of work has already been completed (Rs 4 lakh crore deposited).For 65 years people have been complaining, System khraab hai, theek kon karega? Now when someone is doing it, in 10 days they have created a ruckus as if an earthquake has come.
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                                  Jagdish Chander
                                  Nov 18, 2016 at 5:36 pm
                                  I have certain questions for Mr. Jately to answer:lt;br/gt;1. Did you know the specifications of ATMs which are being used for several millions transactions for dispensing different types of denominations and the change in size of containers and change in software to meet the requirement of changed size and design of new notes ?lt;br/gt;2. Did you calculate the quantum of different denominations of notes being dispensed at bank counters and at ATMs every day?lt;br/gt;3. Did you calculate available human resource capacity to handle that many number of transactions at bank counters?lt;br/gt;4. Have you analysed legitimate cash circulation in rural areas?lt;br/gt;5. Have you calculated availability of bank counters commensurate to the potion in the vicinity of bank?lt;br/gt;6.Have you calculated distance of banks from the localities who were expected to exchange notes? lt;br/gt;7. Have you studied category of persons and their locations who were expected to convert black money into white?lt;br/gt;8. Have you checked the speed at which different denominations of new notes will get printed and how much time will it take to print at least 25% of the notes in circulation?lt;br/gt;9. Have you checked from the banks and ATM vendors about their preparedness to handle required load on 10th of Nov.?lt;br/gt;lt;br/gt;Had you done above study essed capacity to handle such load there is no reason that on 10th Nov. itself entire operation would not have smooth.lt;br/gt;lt;br/gt;Mr. Jately if you buy sofa set which is larger than your door you will not be able to enter that in to your house unless you beak the wall and fit a new door larger than the size of your sofa. This is pure a matter of common sense which lacking in this case. lt;br/gt;New currency note's design could have been changed but why size of the note is changed which does not fit into machine container. lt;br/gt;Mr. Jately govt, should learn from GOD. After the growth of child is stabilized God does not size of feet length. Had God changed size of your foo overnight you would have been walking barefoot without shoes.lt;br/gt;It is total incapability and there cannot be any example in the world of such bad governance.
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                                  1. R
                                    Ramakrishnan Iyer
                                    Nov 19, 2016 at 12:00 am
                                    Politicians are thick skinned. He is talking about law and order problems of any sort till date and for that credit is taken. Suppose something like Jat, Patel or any other type arson etc., had happened, immediately he would have shifted the goal post to state - as law and order is a state subject. So great these people. There are so many problems. These are expected in such a huge exercise, still taking credit for execution. Height of arrogance.
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                                    1. S
                                      Sumit Goyal
                                      Nov 19, 2016 at 12:07 am
                                      No Finance Minister could have been worse than you.
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                                      1. M
                                        Mahan Murphy
                                        Nov 18, 2016 at 8:12 pm
                                        This is related to logistics. movement of currency and calibrating the machines. Why don't you have RFID for calibrating the ATMs? Why didn't you employ the retired bank people from day one? Why didn't you ask the Bombay Dabbawala for the logistics of movement of currency? Did you do a model experiment although clandestinely before doing it big bang? The decision is welcome and lauded but lot to learn from the execution and pains people faced. Did you use scientific OR techniques? If you say execution could not have been better meaning you don't want to learn from the mistakes. or is this IE headline and not what Jaitley actually said?
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                                          Lakshminarayanan
                                          Nov 19, 2016 at 4:53 pm
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                                          1. P
                                            Prasad
                                            Nov 18, 2016 at 8:42 pm
                                            I am a supporter of demonetization and BJP !lt;br/gt;However, I do not agree with Arun Jaitley. It should have been planned and executed much better. lt;br/gt;The Shock therapy that was administered is only being felt by the most vulnerable sections of the society.lt;br/gt;Arun Jaitley, an elitist arrogant Delhiwala has no idea how the rest of India lives and survives !
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