Pulling out high currency notes a ‘half-baked plan’, says P Chidambaram

Experts have criticised that demonetisation did not achieve the objective it was aimed at.

By: ENS Economic Bureau | New Delhi | Published:November 13, 2016 2:40 am
rs 500 ban, rs 1000 ban, rs 500 invalid, rs 10000 invalid, currency ban, black money, Chidambaram, tax, tax on black money, demonoitisation, economy, paperless economy, indian express news, india news, latest news Former Union Finance Minister P Chidambaram. PTI Photo

Former Union Finance Minister P Chidambaram on Saturday criticised the NDA government’s decision to pull the Rs 1,000 and Rs 500 currency notes out of circulation, saying that the move has pushed the common man into “misery and despair”.

“This scheme is not demonetisation. This is ‘Old Notes for New’. Unprepared government pushes common people into misery and despair,” Chidambaram said in a tweet. He also accused the government of not coming up with a concrete action plan to implement the scheme smoothly.

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“The half-baked plan has benefited only touts and middlemen. Government should publish the 2012 CBDT report that advised against demonetisation,” he said.

The Central Board of Direct Taxes (CBDT), in its 2012 report, had cited the two previous occasions when demonetisation as a tool was used to tackle the black money issue. “Demonetisation of high denomination currency notes is believed to be one of the methods to ‘kill’ the extant black economy, and to curb the generation of black money. In India, demonetisation was implemented in 1946 and 1978. Experts have criticised that demonetisation did not achieve the objective it was aimed at. Further, inflation over the years and a large cash economy requires higher denomination currency notes to keep the cost of monetary management of the economy low,” the report
had noted.

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  1. A
    Ainul Hassan
    Nov 13, 2016 at 10:16 am
    I agreed with Mr. Chidambaram. It has already made lives in misery, and the economy also staggered. In most of all sectors every transaction of money has been less monitored.lt;br/gt;lt;br/gt;INDEX of economy that country has lost; if gets compared to black money (though it is not yet covered), it will be much higher. lt;br/gt;lt;br/gt;lt;br/gt;Other then this many common people have lost their lives too in standing queues, some died while hospital not accepted cash, people became violent with amongst them or with bank staff, WHO IS RESPONSIBLE? There is no one who has shown interest on their individual life. Single life is much more worthwhile then to think of black money.lt;br/gt;lt;br/gt;Government would have taken a precaution for each Indians before taking such drastic step!!! lt;br/gt;lt;br/gt;My dear Upper Middle cl and and Rich people, please put yourself at the side of lower middle cl and poor family who struggle on their day to day life, then you realize its importance till than you can only think of black marketers. lt;br/gt;lt;br/gt;lt;br/gt;They plan to curb the real culprits, but made significant loss of India’s economy. And I am amazed people support such unethical behavior of the government. lt;br/gt;lt;br/gt;Mr. Modi promised for Swiss bank amounts to brought back and to account 15 lacs to individual account in 100 days and that seems to be a fake promise now. And he made a surgical strike on common man by bringing such method.lt;br/gt;lt;br/gt;Real culprits are those who have already made a huge monetary income in overseas market and bank, which government fooled during center polls to bring them back and did not do anything.
    Reply
    1. C
      Chand
      Nov 13, 2016 at 5:45 am
      The UPA did nothing to curb black money and P.Chidambaram presided over the Finance Ministry for a long period. These so called intellectual leaders should stop their political rhetoric for the sake of the nation.
      Reply
      1. P
        PooP PaPoO
        Nov 13, 2016 at 2:19 am
        All India Chor Samiti to Phat Gai re
        Reply
        1. P
          PooP PaPoO
          Nov 13, 2016 at 2:16 am
          Iski aur i family ki Phat gai re
          Reply
          1. P
            Praveen Chopra
            Nov 13, 2016 at 10:38 pm
            Chitambaramjee people value your views and comments. KINDLY give comments on how to improve the demilitarisation process and not cast aspersions on a very good scheme.lt;br/gt;Please remember,your own and your sons credentials are on test.
            Reply
            1. D
              dipak
              Nov 13, 2016 at 8:11 pm
              That true, but why you did not do anything when you r finance minister, how much black money you and your family carry ?lt;br/gt;where Mr. doggysinfg hiding?lt;br/gt;How much poltician are hiding black money, what did you do?
              Reply
              1. C
                Citizen
                Nov 13, 2016 at 8:13 pm
                Stupid bhakts are not going to understand what you say. And even if some did, their minds filled with hate would override reason and logic.
                Reply
                1. H
                  Harish
                  Nov 13, 2016 at 5:48 am
                  p. Chidambaram has pea-brain or half cooked brain. Why did he not do this?lt;br/gt;Because , he is gutless also.
                  Reply
                  1. J
                    jayaram reddi
                    Nov 13, 2016 at 2:03 am
                    You should stop publishing articles by this guy. His views are antiquated.
                    Reply
                    1. J
                      Joseph R Stephen
                      Nov 13, 2016 at 7:33 am
                      It is half baked plan.lt;br/gt;lt;br/gt;the government should has created a parallel digital economy and provided with a CREDIT CARD for every household who had a PAN CARD, ADDHAR CARD or Any permanent address.
                      Reply
                      1. K
                        KD
                        Nov 13, 2016 at 9:10 am
                        Who called for his expert(sic) advise...Some action is better than holding sari ka pallu of the boss??Mr. Chidambram,analyse your track as home minister as well as finance minister..and then open your mouth....
                        Reply
                        1. K
                          khanchandani
                          Nov 13, 2016 at 6:12 pm
                          Congressmen are totally frustrated. Not able to gauge what to do with Gaint Modi
                          Reply
                          1. M
                            manian
                            Nov 13, 2016 at 11:35 am
                            As usual PC has started firing his rounds.Suddenly all opposition politicians are shedding tears for the common ,poor people.Oh,what a concern on paper.PC ie coming out with figures ,he hopes ,no body can chek.He puts behind his weight as a former FM. no body should question it.But somethig at last is happening,SBI coolects biggest deposit .all bankrupt govt.bodies beat their collection target probably for the first time ,notes are burntand found floating in rivers.From where this money came and why it is dumped like this.This may not eliminate completely black money but let us laud the squirrel like efforts made by the govt.Some people like PC are eternal critics and only they are the chosen and wise ones ,they think.
                            Reply
                            1. R
                              R.Mehta
                              Nov 13, 2016 at 6:11 am
                              Whether govt. accepts his suggestions or not ,the former FM with his vast expereince should suggest some means to the present govt.,by which the problems being faced by the people of the country for last 4 days can be resolved and the life of common people who have been waiting for hours in front of banks for doing some transaction becomes normal.He and his collegues may have different ideas in their mind to deal with the present situation ,which can be expressed directly to the decesion makers or through medium of press,so that the situation created by the decesion of the govt. can be eased .
                              Reply
                              1. P
                                Pankaj
                                Nov 13, 2016 at 5:25 am
                                So PC, what is full backed program. What are your suggestions?. You did nothing during your years of FMship. Now coming to criticize.lt;br/gt;lt;br/gt;Indian Express should not waste time in publishing such non sense people's comments.
                                Reply
                                1. R
                                  ramk
                                  Nov 13, 2016 at 4:38 pm
                                  shut-up Chidambaram!
                                  Reply
                                  1. R
                                    Raj
                                    Nov 13, 2016 at 12:24 pm
                                    Atleast he is consistent in his policies and viewpoints. Not like bottomless current FM who oppossed everything earlier of what he is himself doing now! Jaitley even had criticised phased withrawal of 500 rs notes older than 2005 - calling it anti poor. Now all of sudden withdrawing all 500/1000rs notes immediately has become pro poor? Jaitley and is this croni PM had oppossed GST, MNRGA, AADHAR, Fuel Price hikes...... you name anything!
                                    Reply
                                    1. R
                                      R.Jayaraman
                                      Nov 13, 2016 at 12:29 am
                                      Anything done by this government will be wrong as per Chidambaram. What did he do during his tenure as FM to unearth black money?
                                      Reply
                                      1. S
                                        Spriya
                                        Nov 13, 2016 at 5:38 pm
                                        Mr. Chidambram, you were a half baked finance minister and did nothing about the black money when you had a chance, instead you let this under your nose and now when someone is doing something about it, you p your comments.
                                        Reply
                                        1. X
                                          xyz
                                          Nov 13, 2016 at 11:58 pm
                                          Bhakts only understand 10 re tea. Anything beyond 10 they have to use their fingers.
                                          Reply
                                          1. B
                                            B
                                            Nov 13, 2016 at 3:27 am
                                            Here comes the expert who planned all the scams for his buddies - 2G, Coal, Commonwealth Games, Agusta helicopters, and many more small ones. Half baked? Let's see what you baked!
                                            Reply
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