Finance Minister Arun Jaitley has said that the “transitory pain” of demonetisation is regrettable but the move will lead to a cleaner economy and better GDP growth in the long run as banks will have more funds to lend.
“PM had an option of doing what many others have done. There was an easier option but he chose the harder one,” the minister said reiterating that that harder option will certainly leave footprints behind as far as the future is concerned.
Jaitley added,”So called seven decade normal had to be disrupted. Prime Minister Narendra Modi had the broad shoulders to face the consequences of the decision.”
“We were ready for debate and still are. The opposition wanted Prime Minister Narendra Modi to be present in the house so the Prime Minister has been regularly present,” Jaitley had said in the Upper House.
He said, india was in the “cusp of history,” and would witness major changes by transforming into a “society in the long term with a certainly better GDP, a cleaner ethics, a cleaner economy.”
Providing a roadmap for India, he reiterated that, “In these 2-3 months, India will move digital. We will achieve far more than what we have achieved in the past few decades. What we will end up achieving is to lay down this new normal.”
Mr Jaitley said the demonetisation move would source more money into the banking system, thereby proliferating the capacity of banks to support the economy. Low-cost funds would be available with banks.”More transactions coming into the banking system means more transactions coming into the taxation system,” the minister added.
It was estimated that the old 500 and 1000 rupee notes constituted 86 per cent or Rs. 15.44 lakh crore in circulation, from which Rs. 11.85 lakh crore in form of old 500 and 1,000 rupee notes have returned into the banking system, as per RBI statements.
The opposition has been demanding a debate on demonetisation along with Prime Minister Modi’s participation in it, in the winter session of parliament. The stark visual of an upper house session where learned ministers bawl unrestrainedly, minus a meaningful conclusion to the discussion is a grave situation for a country like India. The Prime Minister, who invests his time only in discussions that make a difference, is indeed an intelligent man.
