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.

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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
    1. O
      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.
      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.
        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.
          1. A
            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
            1. T
              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
              1. A
                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.
                1. B
                  Bijan Mohanty
                  Dec 2, 2016 at 3:31 pm
                  Stupid governance at its worst.
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