BJP Parliamentary Meets and FM Says More Measures to Ease Cash Crunch
PM Wants People To Rate Demonetization
By TN Ashok / New Delhi
Even as a united opposition paralyzed parliament proceedings for the fifth day today of the winter session on demonetization, Prime Minister Narendra Modi took to the social media tweeting and asking people to rate demonetization move of the government and Finance Minister Arun Jaitley assured the nation that government was coming out with more measures to ease the cash crunch.
“I want your first-hand view on the decision taken regarding currency notes. Take part in the survey on the NM App,” MODI said in a tweet.
Demonetization of high denomination notes “is not the end but the beginning of our deep and continuous struggle against black money”, Prime Minister Narendra Modi told the BJP Parliamentary party meeting. “The decision+ was taken to help the poor,” the PM told BJP MPs. The BJP Parliamentary met today and passed a unanimous resolution congratulating the PM for his “great crusade” against black money, by scrapping Rs 500 and Rs 1,000 notes.
Both houses of parliament were adjourned for the day today consecutively for the 5th day of winter session as opposition stuck to voting and adjournment motion to discuss the demonetization issue demanding PM be present in the house and ruling party BJP insisting on a discussion without having to admit an adjournment motion with voting. Even as opposition demanded PM’s presence in the house alleging he was speaking more outside than inside and CPI Leader Sitaram Yechuri said it was conempt of the house, PM Modi tweeted asking people to rate the demonetisation move on the Narendra Modi app.
Finance Minister Arun Jaitley while addressing the BJP parliamentary party meeting said more government measures were in the offing to ease the cash crunch particularly in rural areas. Post demonetization India is the new norm of the country, he said adding, and demonetization will benefit India in the long run.
“The situation is normalizing in the urban areas. In the next few days, the focus will be on the rural areas so that farmers have enough funds because it is Rabi sowing season. Some decisions were taken yesterday (Monday) night which will be made public today,” he said, according to media reports.
IMPACT OF Demonetization on business is short term; he said pointing out that money would be infused into the economy in a calibrated way. Some more legal steps are needed to make demonetization effective. When remonetisation reaches a reasonable level, then all restrictions will go. Business will start functioning normally,” he said.
Heaving praise on Modi, Jaitley said, The Prime Minister was creating a new norm through the demonetization step.” So far many have only talked about this, but no one had the guts to implement it”.
Very few government decisions leave this kind of economic, social and political impact. People have welcomed it as it has put a premium on their honesty. Jaitley said. “If a system gets established where everyone honestly pays their taxes, then you can imagine what will be the impact on the tax revenues and subsequently on fiscal deficit.”
Senior BJP leaders accused the opposition of a malicious campaign to provoke violence and chaos against the government initiative that sought to act against counterfeit currency, funding of extremist organisations and black money. BJP’s parliamentary party met to discuss the party’s strategy in both houses of Parliament.
URBAN Development and I & B Minister Venkiah Naidu hailed the demonetization move of PM saying it would serve as a serious warning to tax evaders, counterfeiters and terrorists trying to disrupt the country. “BJP condemns malicious efforts by some political parties who are desperate to provoke violence and chaos having been rattled by widespread support by the people to the government’s initiative and are bent upon disturbing the proceedings of Parliament,” Naidu said .
Meanwhile , former US treasury secretary Lawrence Summers in a blog said he was surprised by the dramatic action taken by Indian Prime Minister Narendra Modi to demonetise the existing Rs 500 and Rs 1,000 currency notes.“This is by far the most sweeping change in currency policy that has occurred anywhere in the world in decades,” Lawrence ‘Larry’ Summers, a former chief economist of the World Bank and ex-economic advisor to the US President, said in a blog.
In his blog written jointly with Natasha Sarin, Summers said “We strongly suspect that those with the largest amount of ill-gotten gain do not hold their wealth in cash but instead, have long since converted it into foreign exchange, gold, bitcoin or some other store of value.“So it is petty fortunes, not the hugest and most problematic ones, that are being targeted,” Summers wrote.
“Without new measures to combat corruption, we doubt that this currency reform will have lasting benefits. Corruption will continue albeit with slightly different arrangements,” said Summers, who in the past had advocated a similar measure for USD 100 and Euro 500 currencies. On the balance, nothing in the Indian experience gives us pause in recommending that no more large notes be created in the United States, Europe and around the world.
“We were not enthusiastic previously about the idea of withdrawing existing notes from circulation because we judged the costs would exceed the benefits. . “The ongoing chaos in India and the resulting loss of trust in the government fortify us in this judgement,” Summers wrote.