Demonetisation will lead to bigger, cleaner GDP: BJP

BJP on Saturday termed the aftermath of demonetisation a “sacred movement” during which the masses accepted the temporary suffering with enthusiasm.

BJP on Saturday termed the aftermath of demonetisation a “sacred movement” during which the masses accepted the temporary suffering with enthusiasm and asserted that black money has now been deposited in banks that will lead to high revenues and bigger and cleaner GDP.

A bank employee checks stacks of new 2000 rupee notes in Ahmedabad.(AFP Photo)

The economic resolution passed at second and concluding day of the party’s national executive also accused the opposition of trying to defame the government by destroying the country’s positive environment and termed demonetisation a “brave move aimed at the poor’s welfare”.

“In this sacred movement across the country, the common people were taking upon themselves the temporary suffering of standing in queues with full enthusiasm and positive energy, but the opposition had become negative with destructive energy to defame the central government and trying to destroy the positive environment of the country,” it said.

Finance minister Arun Jaitley claimed that demonetisation has resulted in black money making its way to bank accounts and the additional money will boost developmental projects.

“Black money has been deposited in the Banks. It has lost its anonymity. The informal Economy will now increasingly integrate with the formal economy. This will lead to higher revenues with the States and the Centre. It will lead to the bigger and the Cleaner GDP,” the resolution said.

The resolution said demonetisation was necessary for decimating the parallel economy of black money and for the smooth functioning of the GST in near future.

“There is today more money with the banks to lend. Interest rates have moved downwards,” it said.

With BJP leaders endorsing the exercise whole-heartedly, the party’s ‘Kisan Morcha’ chief Virendra Singh Mast claimed at the meeting that it also resulted in lack of wasteful expenditure by farmers, a community which, opposition parties claimed, has suffered most due to cash crunch.

Briefing reporters on the resolution and Jaitley’s speech in the closed-door meeting, Union Minister Nirmala Sitharaman said the “bold and historic decision” underlined a firm and visionary leadership which puts the country above party and individuals.

“The Rs 500 and Rs 1000 notes hidden in mattresses, something people would say symbolically, is now in bank accounts. It will help development,” she said.

Jaitley also cited figures to assert that revenue of most states had not suffered and in case of some like Uttar Pradesh and Madhya Pradesh it had even increased. West Bengal could be one state where it declined, he said and took a dig by adding that states can raise revenue by running efficient governments.