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'Among worst policy blunders': Jairam Ramesh on 5th anniversary of demonetisation
The veteran Congress leader also claimed that demonetisation, along with a “rushed” goods and services tax, "destroyed the backbone of the Indian economy".
Senior Congress leader Jairam Ramesh on Monday took a swipe at the Narendra Modi-led Union government, remarking that demonetisation will be marked in the world's economic history as among the "worst policy blunders". The remark by Ramesh came on the fifth anniversary of demonetisation, which was announced by Prime Minister Narendra Modi on this day in 2016.
The veteran Congress leader also claimed that demonetisation, along with a “rushed” goods and services tax, "destroyed the backbone of the Indian economy".
"With every passing year, it is becoming even more clear that 8.11.2016 will be marked in the world's economic history among the worst policy blunders anywhere. Demonetisation along with rushed GST destroyed the backbone of the Indian economy -- the MSME and informal sectors especially," Ramesh said in a tweet.
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Jairam Ramesh also shared a graph by former chief economic adviser Arvind Subramanian which was titled "Despite digital boom, cash is back with a vengeance".
"First, we were told that demonetisation meant a cashless economy. Soon the 'sarvagyani' changed track and said not cashless but less cash. Now, cash in circulation is above pre-demonetisation levels," Ramesh said as he continued his tirade against the Prime Minister.
Modi in a televised address to the nation on November 8, 2016, declared ₹500 and ₹1,000 banknotes invalid as part of the government's efforts to "crack down on black money."
Earlier in the day, several parties questioned the demonetisation move by the Centre. CPI(M) general secretary Sitaram Yechury alleged that it "decimated the informal sector".
"Economy into a tailspin, the poorest hurt. Informal sector decimated. No black money recovered, but rich got richer. Cash in the economy is the highest ever now! This govt must bear responsibility for pushing India downhill, just for one man’s whim," he said in a tweet.
Maharashtra cabinet minister Nawab Malik also slammed the Centre over demonetisation, saying neither black money came nor corruption has been controlled in five years while the rate of unemployment increased.
"Today, 5 years of demonetisation have been completed. Neither black money came back, nor corruption and terrorism were controlled. Modi had asked for 3 months, now he can tell us which crossroads we have to come," Malik tweeted in Hindi.
