DOES THE BUD­GET DO ANY­THING SUB­STAN­TIAL TO CURB BLACK MONEY? WHAT ABOUT CUSH­ION­ING THE IM­PACT OF DE­MON­ETI­SA­TION?

India Today - - COVER STORY -

AD.K. JOSHI

Black money is dif­fi­cult to mea­sure, and what can­not be mea­sured can­not be mon­i­tored. A bet­ter mea­sure to look at would be ef­forts to im­prove tax com­pli­ance.

The bud­get aims to in­crease tax/GDP ra­tio, which means im­prov­ing com­pli­ance and bring­ing more peo­ple within the tax net. It in­tends to raise the tax/GDP to 11.3 per cent in 2017-18 through a num­ber of steps, in­clud­ing big data an­a­lyt­ics.

En­hanced ru­ral spend­ing and some tax re­lief to small en­ter­prises will cush­ion the im­pact of de­mon­eti­sa­tion

ASHIMA GOYAL

Yes, it does fol­low up with mea­sures to curb black money sources such as elec­toral fund­ing, ra­tio­nal­i­sa­tion in real es­tate cap­i­tal gains mea­sure­ment. The im­pact of de­mon­eti­sa­tion seems to be re­duc­ing, so the cush­ions pro­vided in the bud­get are ad­e­quate

USHA THO­RAT

Mea­sures to curb po­lit­i­cal fund­ing and in­ves­ti­ga­tion of cases where large de­posits were made un­der the de­mon­eti­sa­tion scheme... there are some mea­sures to cush­ion the im­pact [of de­mon­eti­sa­tion]. We still need more data to un­der­stand whether the in­creased tax rev­enues are com­men­su­rate with the pain.

Other ar­eas that could have been at­tempted are gold, prop­erty deals and tax on large with­drawals of cash from banks

ADITI NAYAR

Lim­its on trans­ac­tions, do­na­tions to char­i­ties and po­lit­i­cal par­ties in cash; mea­sures to pro­mote dig­i­tal trans­ac­tions as well as pal­lia­tives to bring more as­sessees within the tax net may help curb the gen­er­a­tion of black money to some ex­tent

N.R. BHANUMURTHY

In­crease in credit al­lo­ca­tion to agri­cul­ture and MSMEs will of­fer some com­fort post-de­mon­eti­sa­tion. Pol­icy mea­sures such as re­stric­tions on cash trans­ac­tions above Rs 3 lakh, po­lit­i­cal fund­ing re­forms, im­ple­men­ta­tion of GST and in­cen­tives for us­ing dig­i­tal plat­forms should help re­duce unaccounted-for money

RA­JIV KU­MAR

Yes, it takes sev­eral steps—curbs on do­na­tions to char­i­ties and po­lit­i­cal par­ties and strong mea­sures against de­posits made il­le­gally in banks post-de­mon­eti­sa­tion

ASHOK GU­LATI

Marginally. Not sig­nif­i­cantly

NAUSHAD FORBES

De­mon­eti­sa­tion it­self has been the big­gest move to curb black money. Other mea­sures in­cluded in the bud­get are re­stric­tions on anony­mous po­lit­i­cal fund­ing, lim­its on cash pay­ments and spread of dig­i­tal­i­sa­tion

SAMIRAN CHAKRABORTY

Steps taken to stream­line po­lit­i­cal fund­ing are very wel­come. Re­gard­ing de­mon­eti­sa­tion, nor­mal­i­sa­tion of the de­mand sit­u­a­tion is more a func­tion of new cur­rency notes than bud­get-spe­cific mea­sures

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