Manmohan, Jaitley spar over impact of note ban
AHMEDABAD/NEW DELHI: Charges flew thick and fast between the government and the main opposition party on Tuesday over whether demonetisation had benefited the economy, a day before the first anniversary of Prime Minister Narendra Modi’s watershed decision to ban highvalue banknotes.
In a blog early on in the day, finance Minister Arun Jaitley called the move an “ethical drive” that had rooted out corruption from the economy. Shortly after, former Prime Minister Manmohan Singh responded, saying the scrapping of 500-and 1000-rupee currency bills was a reckless step that helped “organised loot and legalised plunder”.
Ever since the shock clampdown on high-value bills, both government and the opposition have differed on what it meant for the economy. By rendering highvalue notes useless in one stroke, the government said it had exposed hoarders of undeclared wealth, or black money, forged a more digitised economy and widened the tax base. Those opposed said the decision had crimped the economy with no benefits and much pain for the poor.
To mark its first anniversary, the government has planned a publicity blitzkrieg to showcase what it says is the success of demonetisation. The Congress and other opposition parties will respond with a so-called black day ”.
On Wednesday, Singh said the NDA government had not learnt any lessons from their “monumental blunder”, as he compared the country’s economic growth on his watch to that under Modi.