-Complaint relating to threat to Rabi crop appears to be genuine but a bit exaggerated. However, government has eased the restrictions on farmers shows that government is concerned for them. -As regards to issue of timing and season, one cannot find any season in India, where there is no disturbance. It couldn’t have been done in summer and rainy season, it couldn’t have been done in peak winterseither. -A similar demonetization of ₹10,000 notes was done in 1978 but that did not reap benefits and thereafter black money increased. So why attempt it now? The two cases are incomparable. In 1978 high value notes were possessed by very few people and not by the common people, outstanding amount of such demonetized notes were very small as compared to total outstanding currency. Scale in 1978 was not even a millionth of what it is today and successive governments did not take concrete and effective measures to curb black money. Similarly, in the present
Demonetization-India’s BLEXIT: Black Cash EXIT2016© 2012 - 2013 STAKEHOLDERS EMPOWERMENT SERVICES | All Rights Reserved Page5 case, future black money generation will depend on how effective the government is power prove to be to tackle corruption, counterfeiting and bringing people to tax net. -A high percentage of black money is stashed in foreign countries or tax havens and the government has not brought back that money and is creating a chaos in the Country. Any one step taken cannot tackle problem at all fronts and all types. Problem specific actions are required. Who said demonetization is to weed out all form of black money? Its limited aim is to bring hoarded cash either within banking system and make rest useless. -How introduction of ₹2,000 note will curb generation of black money? One needs to make distinction, this move is only to unearth and make cash black money useless. The same will be achieved. It is one of step to curb black money. On issue of future generation of black money, a holistic approach is required and it is already in use, like linking all accounts to PAN numbers, reporting all accounts in IT Return and restriction on cash use as well as tagging cash withdrawal. These are systemic issue relating to detection. The real action will be required to attack its future generation, by reduction in corruption and detection.In SES’ opinion that the move by the government is far reaching and in a direction to remove an ill which adversely affects all of us, therefore any opposition unless it is on account of operational issue, makes the motive suspect. IMPACT ON COMMON MANNo doubt the common man is hit hardest, especially those who are daily wage earners and have no hoard of cash. Even their meagre cash assets have been immobilized and are facing problems to meet their daily essential needs.
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- Fall '17
- Government, SES, stakeholders empowerment services, Black Cash EXIT