Pm Modi on Demonitisation : Modi claims demonitisation helped in economy rise

Modi claims demonitisation helped in economy rise, Cong thinks otherwise

New Delhi, Nov 8 : Prime Minister Narendra Modi on the fourth anniversary of demonitisation on Sunday said the move helped to reduce black money and increase tax compliance.

“Demonetisation has helped reduce black money, increase tax compliance and formalization and given a boost to transparency,’ Mr Modi wrote on his official twitter handle.

He further said that the outcomes have been greatly beneficial towards national progress.

The Prime Minister also posted a total of four graphics claiming that the step did the needful.

On taxation, it said a self-assesement tax of Rs 13,000 crore was paid by the targeted non-filers.

Over 3.04 lakh people who have deposited cash of more than Rs 10 lakhs and have not paid the tax, were identified. Among these, 2.09 lakh people paid their tax totalling to Rs 6,531 crores.

A graph posted by Mr Modi, showed that India’s tax/GDP ratio rose from 2016 to 2019.Another statistics indicated that the demonitisation led to rise in digitilisation as circulation of currency notes reduced by over Rs 4.28 lakh crores.

The last pie shape graph showed that counterfied notes in circulation declined from 7.62 lakh in 2016 to 0.90 lakh in 2020.

It also claimed that with the demonitisation, financing of terror and left-wing extremism declined.

However, the Congress and other Opposition parties strongly condemned the step of discontinuing the old Rs 500 and Rs 1,000.

The Congress, in its official twitter handle, wrote that the GDP declined from 8.6 per cent in 2016 to 3.1 pc in March 2020.

The party said after demonitisation 99.30 pc demonitised money came back to the bank, which shows that the informal sector was destroyed.On counterfeit currency notes, the party claimed that Rs 200 new notes increased from 79 in 2017 to 31,969 in 2019 while for Rs 500 new notes, the rise was from 9,892 to 30,054.

The Congress since Sunday morning ran a campaign “Speak up India ‘ against demonetisation.

On November 8, 2016, Mr Modi, in his address to the nation announced that old notes of Rs 500 and Rs 1,000 ceased to exist as legal tender from midnight and gave over 40 days to exchange these notes in return for new ones.


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