GS (M) Paper-2: “Government policies and interventions for development in various sectors and issues arising out of their design and implementation.”
GS (M) Paper-3: “Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.”
‘Demonetisation transformed mindsets’
Minister for urban development and information & broadcasting, Venkaiah Naidu, shares his thoughts in this article on the demonetization initiative by the government.
Views on demonetization step:
The Government had repeatedly stressed that the decision to demonetise high value currency was not taken in isolation.
A series of important measures ranging from constituting an SIT headed by a former Supreme Court judge to trace black money stashed abroad to the Income Declaration Scheme preceded the game-changing decision as part of the war against black money, corruption and terror-funding.
What the facts say?
Even as re-monetisation is continuing at a fast pace and the objective of the Government to curb black money and corruption is making a huge positive impact among the masses, the blind critics of demonetisation are still not able to come to terms with the below telling facts. These are as follows:
- A 38% increase in the filing of personal income tax returns post-demonetisation
- Significant growth in both direct and indirect taxes
- Integration of parallel economy with formal economy, and
- Enlarged revenues to the coffers of the Centre and various State governments.
With more cash flowing into the banking system post demonetisation, the banks are now in a position to step up lending and reduce interest rates.
- With India’s cash to GDP ratio at 12.2 per cent being higher than several other countries, including emerging economies, the drive towards a digital economy would benefit all — from government (prevent leakage of revenues) to individuals — because of the virtual nature of transactions.
- It is important to note that the increase in revenues would enable the governments hike spending on social welfare and development schemes and give a huge fillip to economy-driving sectors such as housing.
- While having a totally cashless society is a utopian ideal, the measures taken towards building a less-cash society will greatly reduce corruption.
No doubt, people had to face hardship for a temporary period. However, the gains in the long run are expected to outweigh the short-term problems as the GDP clocks a growth of 7.1 per cent in 2017-18, the formal economy expands, digital transactions increase, and the twin menaces of black money and corruption are dealt a huge blow.[Ref: Business Line]