Chhattisgarh on Wednesday became the first state in the country to pass a motion in the assembly supporting the demonetisation move of the central government. The state has also exempted swipe-machines from value added tax (VAT) to encourage e-transactions.
Backing the central government’s decision of demonetising 1,000 and 500 rupee notes, chief minister Dr Raman Singh on Tuesday tabled an urgent motion in the legislative assembly that was taken up on Wednesday.
The chief minister told the assembly that the house welcomes the Centre’s decision of demonetisation and expressed support to promote institutional mechanisms for clean monetary transactions.
The assembly passed the resolution with 41 votes in favour and 25 against the motion.
“The government will procure paddy at the minimum support price (MSP) from the farmers of the state from Thursday and for that e-payment will be made. Government has made all arrangements for the farmers of the state at 1,986 procurement centres,” said Singh while talking to media persons.
“In order to serve the national interests including eradication of black money and to restrict pecuniary resources of terrorists and to curb the circulation of fake currency the Union has decided to ban the old notes of Rs 500 and Rs 1000 denomination. This step is going to strengthen the national economy and make it more transparent and efficient,” he added.
Reacting on the resolution, leader of opposition TS Singdeo said demonetisation will not be effective in curbing black money and people are facing hardships due to this decision. “The experts are saying that the decision of Union government is a ‘gamble’ and it could be ‘disastrous’ for the economy and common man,” he added.