Demonetisation shows govt will to cure dreaded disease of black money: Jaitley | Hindustan Times
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Demonetisation shows govt will to cure dreaded disease of black money: Jaitley

In a blog post, finance minister Arun Jaitley described India’s biggest-ever note ban a year ago as a “watershed moment” in the country’s economic history.

india Updated: Nov 07, 2017 16:16 IST
HT Correspondent
In a shock move on November 8, 2016, the government announced the scrapping of 500- and 1000- rupee banknotes which effectively invalidated 86% of the currency in circulation in India.
In a shock move on November 8, 2016, the government announced the scrapping of 500- and 1000- rupee banknotes which effectively invalidated 86% of the currency in circulation in India.(File Photo)

India has moved to a cleaner, more transparent and honest financial system a year since the Narendra Modi-led government scrapped high-value banknotes to tackle corruption, finance minister Arun Jaitley said on Tuesday.

The government pulled out 500- and 1,000-rupee notes out of circulation last year in a blitz against corruption, counterfeits and terrorist funding.

Ahead of the first anniversary of the government’s shock announcement, Jaitley said November 8 will be remembered “as a watershed moment in the history of Indian economy”.

Last year’s currency switch wasn’t smooth, with banks and ATMs kiosks recording long queues of people waiting for hours for their turn to deposit defunct notes and get new ones, triggering public anger and the Opposition’s criticism.

Defending the demonetisation measure in a Facebook post, Jaitley wrote: “When the country is participating in “Anti-Black Money Day”, a debate was started that whether the entire exercise of demonetisation has served any intended purpose. This narrative attempts to bring out positive outcomes of demonetisation in short-term and medium-term with respect to stated objectives.”

Jaitley said the day signified the resolve of the government to cure the country from the “dreaded disease of black money”. He said it was the “hidden urge” of a large section of society to get rid of this “menace”.

In the blog – ‘A Year After Demonetisation’ – the finance minister said the benefits may not yet be visible to some people, but the next generation will view the post-November, 2016 economic development with a great sense of pride.

The Opposition, especially the Congress, has repeatedly blamed demonetisation and the government’s handling of the Goods and Services Tax for economic slowdown and unemployment in the country.

In his post, Jaitley said the there was “a shift towards greater formalisation of the economy in the near term aided by the introduction of Good and Services Tax (GST)”.

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