Aim of note ban was to bring down cash in economy: FM Jaitley

RSTV Bureau

Addressing the media at the release of RBI’s Annual Report on 2016-17, Finance Minister spoke of the major “objectives” of the demonetisation and said that the integration of the formal economy with the informal economy was also one of the objectives.

“Object of demonetisation was that India is predominantly high cash economy therefore that scenario requires to be significantly altered,” he said.

File Photo: Union Finance Minister Arun Jaitley addressing a press conference.

File Photo: Union Finance Minister Arun Jaitley addressing a press conference.

Criticising those who criticize demonetisation, Finance Minister Arun Jaitley on Wednesday said that those never fought against black money are “confusing” people and the objective of demonetisation was not to confiscate money.

Earlier on Wednesday, the Congress hit out at the NDA government and at the central bank for the note-ban move. Citing the RBI report, former finance minister P Chidambaram said, “RBI ‘gained’ Rs 16000 crore, but ‘lost’ Rs 21000 crore in printing new notes! The economists deserve Nobel Prize”.

Jaitley hit out at the Congress and other critics by saying that post demonetisation, evidence of cash squeeze was visible in both Chattisgarh and Kashmir.

The finance minister also said that the government will keep a strict tab on black money used in elections.

“My next step is going to be to put an end to black money used in elections,” said Jaitley.

Jaitley reiterated PM Modi’s words on demonetisation and said that the aim of demonetisation was to curb black money and rise of terrorism using counterfeit money.

Stressing on the benefits of demonetisation, he said that it was obvious that the direct tax base has expanded substantially after the move.