Demonetisation: Disruption is temporary but there’ll be long-term benefits, asserts Jaitley

GST and demonetisation will be game changers and it will make India one of the fastest growing economies, Arun Jaitley said.

By: Express Web Desk | Updated: December 2, 2016 5:11 pm
Arun jaitley, Jaitley, Finanace minister Arun jaitley, demonetisation, demonetisation arun jaitley, demonetisation effects, Currency, GST, Goods and services tax, GST Arun Jaitley, Indian economy, economy, indian banks, India GST, Business news, indian express news Union Finance Minister Arun Jaitley. PTI Photo

Union Finance Minister Arun Jaitley Friday spoke on the outcome of demonetisation making it clear that secure printing of currency is a time-consuming exercise, but insisted that the Reserve Bank is calibrating the release of the new currency. Even as he admitted the demonetisation move is bound to create some disruption, he said it will have benefits in the long run. His remarks came at the HT Leadership Summit.

“When you switch over, it creates disruption. I don’t see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it’s certainly going to benefit,” Jaitley said. “Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned.”

With an aim to promote digitisation, Jaitley said that volume of trade, business will grow through plastic transactions but added that the size of paper currency will substantially shrink. The Finance Minister further said that the country is changing much faster than expected, claiming that the Goods and Services Tax bill and demonetisation will be game-changers. He, however, said that investors will be wary of some states seen on wrong side of reforms. “India is likely to continue to be fastest growing major economy in world as last year,” he said.

WATCH VIDEO: Speed News: Parliament, Pakiatan, PM Modi, Arun Jaitley & More

Jaitley said the constitution does not provide delay in GST and that the amendment notified on September 16 mentions that the indirect tax can run for year, but any delay would mean no taxation from September 17, 2017.

“There is a constitutional compulsion to have GST before September 16, 2017,” he said, stressing that the country will expand into a larger economy with higher and cleaner GDP a year from now.

(With PTI inputs)

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  1. A
    Abhinav Gour
    Dec 2, 2016 at 12:34 pm
    Yes, this is a game changer but only by 2019.. when you sit in home with the le ex Finance minister
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    1. O
      Ompuri
      Dec 2, 2016 at 9:35 am
      Has any of your family members stood in those que for days Mr. Jailed? Or your not very so corrupt PA stood on your behalf? Your boss fekoo has no family or children so he don't worry about little things like money! This chaiwala has sold india down the drain.
      Reply
      1. A
        Adrian Akau
        Dec 2, 2016 at 8:37 pm
        The growth of new black money by thefts and bribes will be rapid so old black money can be replaced as soon as possible.
        Reply
        1. A
          A.M jos
          Dec 2, 2016 at 1:42 pm
          Who is Jaitley to teach us how to live and spent money. He can teach his family not us and by mistake we have put the money in the bank. Any way we will take it out and will not allow your Ambani andAdani friends to steal our money.
          Reply
          1. A
            anand
            Dec 2, 2016 at 4:16 pm
            y first u disclose the black money I'mi middle man I'm having 30000 thousand Indian rupees original not duplicate u rascalslt;br/gt;Decision I lost 30000 Rs what is ur answer now all people will keep the 500 rs and 2000 rs they block in trancsion that time they will kick ur
            Reply
            1. T
              THM
              Dec 2, 2016 at 9:22 am
              Good intentions should be backed with good implementation. The government is certainly wanting on the implementation front in case of demonitisation
              Reply
              1. A
                Arun
                Dec 2, 2016 at 2:02 pm
                RSS has decided what we should eat, how much to eat, where and when to eat, what to see, speak, dress........ Fascist.
                Reply
                1. B
                  Bijan Mohanty
                  Dec 2, 2016 at 3:31 pm
                  Stupid governance at its worst.
                  Reply
                  1. B
                    Bijan Mohanty
                    Dec 2, 2016 at 3:20 pm
                    Talking in the air and giving tall lectures in air conditioned halls surrounded by political and business cronies do not improve the dismal ground realities. How many BJP ministers and MPs have stood in the queue in front of banks in Delhi to beg for withdrawl of their own money ?
                    Reply
                    1. D
                      Darkhorse
                      Dec 2, 2016 at 10:59 am
                      Whats left to let down he has already let everyone down
                      Reply
                      1. A
                        ASHOK KUMAR
                        Dec 2, 2016 at 4:15 pm
                        Short term and long term gain for corporate houses close to Modi and long term pains to common man. The prices of bread, milk, other grocery items rising on daily basis and may lead to suicides for poor people.
                        Reply
                        1. g
                          gj2323
                          Dec 3, 2016 at 6:49 am
                          Are Rural Indians fools? lt;br/gt;Well this is what looks like whenever debates take place on News channels. lt;br/gt;It has been seen since a long time that whenever there is implementation of new technology or idea the panel people say villagers won't be able to do that. Village people are illetrate. They can't join the modern world. lt;br/gt;Why this kind of shaming? lt;br/gt;By showing a villager in a bad light what do you gain? lt;br/gt;Dr. Kalam was from a village and so was Shastriji. Rural India is full of wise people. They can certainly adapt to any modernity or any change. They are just not vocal. Have you brought any true rural Indian on your TV shows? No sadly not. lt;br/gt;Kindly stop shaming them and also hiding behind their naive Ness.
                          Reply
                          1. S
                            Sreenivasan
                            Dec 3, 2016 at 9:18 am
                            Now we will see Mr. Arun Jaitley more often in news. PM needs protection from public. He will now lean over to history and leaders who demised long back for inspiration. All the houses he wanted to make for the poor, all the roads he wanted to build to connect all villages, all the drinking water projects everything will be stopped now for want of money. The fund that has now reached the banks will disappear slowly as people will withdraw from their accounts. Then we have the big corporates whom we have to pamper to create more NPAs in banks. How all this will be possible now ? Bhakts must be given an answer quickly.
                            Reply
                            1. S
                              Sreenivasan
                              Dec 3, 2016 at 5:52 am
                              The ber is slowly being recognized in the party and Ministry. Hence, Mr. Narendra Modi will push unfortunate Mr. Arun Jaitley to do all the defense work now. Now the only other option left with the government to make sure the UP people vote for BJP in large numbers is an open war imposed on stan. Will they do the super ber for winning just a State election ?
                              Reply
                              1. S
                                Sreenivasan
                                Dec 2, 2016 at 11:19 am
                                On DEMON FM was not consulted. Still the following is the mathematics of it as given by RBI through several of their reports and press releases. Total No. of Rs.500 notes 171650 lakhs (Rs.858250 Cr.). Total No. of Rs.1000 notes 68580 lakhs (Rs.685800 Cr.) Total Rs.1544050 Cr. Bank received till yday Rs.845000 Cr. Bal Rs.699050 Cr.
                                Reply
                                1. F
                                  Feku
                                  Dec 2, 2016 at 2:49 pm
                                  Italian court convicted the Agusta Helicopter scam bribe givers and sent them to jailvestigation papers name all the top Cong leaders but Feku and Kallu mama shah is askinig with folded hands '''batao sonia ji...paise kisne khaye ?'' lt;br/gt;This is the same feku who was publishing books about the life and crimes of Robert Vadra and Italian waitress and pappu before elections.Not even an FIR has been filed against Vadra till now !! let alone arrest him…but AAP leaders are arrested by mere mentions of words like threat,extortion,ault etc.lt;br/gt;People will teach this feku a lesson he wont forget.lt;br/gt;-----------------------lt;br/gt;Ek chaiwale ne pure desh ko ullu bana diya.
                                  Reply
                                  1. K
                                    Krishna Govil
                                    Dec 2, 2016 at 2:54 pm
                                    his master's voice. This man Modi has devastated Indian Economy . But what worries me that propaa seems to have blunted the rational thinking
                                    Reply
                                    1. H
                                      H.Balakrishnan
                                      Dec 2, 2016 at 12:17 pm
                                      Like the daily changes in policy regarding cash and banks, one wonders whether this FM knows what he is talking ? The people are suffering today because of the incompetence of the FM and his Mandarins at North Block and the RBI. Whatever happened to all their TALL TALK of "enough cash in the currency chests " , judging by the number of people returning empty handed from the banks ? Preposterous that one can't draw one's own ry. People's patience is wearing thin. Time the FM understood the virtues of silence at this juncture.
                                      Reply
                                      1. H
                                        H Bahl
                                        Dec 2, 2016 at 9:49 am
                                        Mr FM ! No one is denying the benefits in the long run but the debate and discussion is about the timing ,the implementation and the suffering of millions of Indians.lt;br/gt;lt;br/gt;Someone has to be accountable for the mess the country is today and all fingers point to you.lt;br/gt;lt;br/gt;Therefore your moral obligation is to resign with immediate effect.
                                        Reply
                                        1. J
                                          J G
                                          Dec 2, 2016 at 11:39 pm
                                          Black money not un earthed RBI says Note bandi is a damp squid in the matter and the country derailed from growth
                                          Reply
                                          1. J
                                            JayHind
                                            Dec 2, 2016 at 2:06 pm
                                            A honest hundu in chaddi is like A HUMAN WITH ELEPHANT HEAD
                                            Reply
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