More tough steps in offing with eye on revenue

CENTRE’S GOAL IS NOT ONLY TO STRIKE AT THE ROOT OF BLACK MONEY BUT ALSO MOP UP MORE REVENUE TO CHANGE SCALE OF DEVELOPMENT

NEW DELHI: Prime Minister Narendra Modi may roll out more drastic economic measures with an aim to garner extra revenue in order to up the scale of development.

“More such moves (like demonetisation) are in store,” a government leader in know of the Tuesday decision said without elaborating.

The Centre’s goal is not only to strike at the root of black money or choke terror and naxal outfits’ funds, but also mop-up more revenue to change the scale of development activities.

“What else are we in power for?” the leader said. “Our estimate suggests 90% of people will end up supporting the move.”

Modi government is the first in three decades to get a majority on its own and it rode to power in 2014 riding on popular vote against corruption and a sluggish economy.

There is admission in the government and the BJP about the possible impact of the move on its committed vote base — such as small traders—but realisation about the need to take ‘risks’ was too overbearing.

Government leaders feel the demonetisation move will flush the illicit money and fake currency out of economy and help garner more revenue for some ambitious programmes that will be rolled out eventually.

Those privy to the demonetisation discussion before it was made public on Tuesday hint that next couple of years will see increased spending on armed forces, infrastructure creation and other such activities. “The plan expenditure of the government did not grow over the last seven years. We will increase it many fold,” he said.

Government leaders are unequivocal in sending out strong message to those hoarding black money. “There will be no relief for those depositing unaccounted money over and above `2.5 lakh,” the leader warned suggesting strong action if unaccounted wealth was brought into the banking system. “It should be treated as scrap.”