FM Arun Jaitley talks about the benefits of demonetization on economy and thanks Indian people

Union Defence Minister Arun Jaitely.
Union Defence Minister Arun Jaitely.

NewDelhi,Dec29:Nearly 50 days after the implementation of demonetisation, finance minister Arun Jaitley said on Thursday that the critical phase for the economy is now over and the situation will only improve further.

“The critical part of remonetisation is now behind us and it will be much better, going forward,” Jaitley told reporters at a media briefing.

Jaitley said that the November 8 decision has greatly benefitted the economy, with a double-digit increase in tax collection figures.

  • Remonetisation has substantially advanced; not a single incident of unrest reported.
  • RBI has very large currency available; large part of currency replaced and more notes of Rs. 500 being released.
  • More currency being re-circulated and ability of banks to lend has increased.
  • Till December 19, direct tax mop-up has risen 14.4 per cent, indirect tax grows 26.2 per cent; central excise up 43.3 per cent and Customs rose 6 per cent.
  • Life insurance business up, petroleum consumption increased and so are tourism and investments in mutual funds.
  • We are extremely grateful to the people of India who supported demonetisation move.
  • The net increase seen on direct taxes is 13.6 per cent.
  • The Rabi crop sowing is 6.3 per cent higher as compared to last year.
  • Large benefits of demonetisation are visible, what is in banks is identifiable impact on tax collection already visible.
  • Notwithstanding what critiques predicted, in all segments there has been significant increase in indirect taxes.
  • Critical part of remonetisation is now behind us, it will be much better, going forward.
  • Critics proved wrong. There could have been adverse impact of demonetisatin on GDP for quarter or so, but it is not as bad as predicted.

“A large part of the demonetised currency has been replaced and more new notes of Rs 500 are being released for circulation,” he added.

 The finance minister underscored that contrary to apprehensions, the impact on GDP was not as bad as feared and in fact, various sectors such as investment in mutual funds and life insurance, fuel consumption, and tourism witnessed growth post demonetisation.
Jaitley thanked people for supporting demonetisation and said that not a single incident of unrest has been reported over junked notes.