1. Get real! FM Arun Jaitley slaps 5 positive data points on critics of demonetisation

Get real! FM Arun Jaitley slaps 5 positive data points on critics of demonetisation

Finance Minister Arun Jaitley has slapped a series of figures and data on the faces of the critics of demonetisation.

By: | Published: December 29, 2016 7:38 PM
demonetisation, demonetisation impact, demonetisation latest news, demonetisation jaitley Demonetisation: As Jaitley himself says, “Assessments can be unreal, but revenue is real”. (PTI Photo)

Finance Minister Arun Jaitley has slapped a series of figures and data on the faces of the critics of demonetisation. With Opposition crying foul on how the Narendra Modi government’s demonetisation drive has derailed the Indian economy, a set of 5 data points presented by the Finance Minister come as a fitting reply. As Jaitley himself says, “Assessments can be unreal, but revenue is real”. Addressing the media, FM Jaitley today said, “Of course there would be areas that would also be adversely impacted but what was being predicted by the critics has to have a rationale with the revenue collections.” According to Jaitley, “with the critical part of the remonetisation already behind us, and there being no significant impact in a large number if these areas, it should certainly be much better in the weeks and months to come than it was in the last 6 weeks.” Here are 5 notable things he said:

1) Already a large part of the benefits of this historic move are visible. A lot more money has come into the banking system. Cash has an anonymity attached to it, what comes into the banking system gets identified with a person and therefore its impact on taxation and revenue collection is already being seen. The ability of the banks to lend has now increased.

The revenue figures itself are more significant. We have till the 19th of December, the direct tax figures of income tax, which are now available. And the net increase in the income tax so far, has been to the extent of 14.4%. And if one factors in very large quantums of refunds, because these days the refunds are also made immediately, the net increase is still 13.6% till 19th of December.

Watch: Here’s what FM Arun Jaitley said to critics of demonetisation

2) The indirect tax figures are also available. And not withstanding what the critics have predicted, in all the categories till 30th of November, there is a very significant increase in indirect taxation. In the central indirect taxes the increase is 26.2%. This is till the 30th of November. And this includes excise duties increasing by 43.5%, service tax increasing by 25.7%, and customs duties by 5.6%.

3) We have also tried to check up the figures for the month of November, which could have been adversely impacted on account of the currency replacement. Compared to the November of 2015, on a year-to-year basis, the November of 2016 – for all the three indirect taxes, the collection is much higher. We have also been trying to look at the figures of the state governments for the actual month of November which would be reported by the state governments only towards the end of December, the increase or decrease is not very significant, and in several areas which could have been impacted because of the move.

4) In the field of agriculture, because we were also concerned that it should not cause any distress in the rural areas, the rabi sowing – overall for all crops – is 6.3% higher than last year.

5) Life insurance businesses have increased, international tourism has increased, air passenger traffic has increased, petroleum consumption has increased. The flow into the mutual funds has increased by 11%.

Jaitley also went on to assure the common man that there is no dearth of currency in the system. “The Reserve Bank has very large amounts of currency available and it will continue to support the market to the extent that the market needs that kind of liquidity. Amongst the currency which was in circulation on the 8th of November, a very large part has already been replaced and would continue to be replaced to the extent that the market requires that currency,” he said. “More and more notes of Rs 500 are being released into the market through the banking and the post office system and therefore we can now see a lot more currency coming into recirculation which is enabling the banking system and the ATMs to further augment the supply itself,” he added.

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    Drsecular
    Dec 29, 2016 at 3:11 pm
    For every inconvenience caused by demonetization there are a lot many benefits. General public is already experiencing and seeing that in the news. Short-term difficulties pave way for long-term gains and general public knows that. Bitter medicines are necessity for curing the decades-long diseases which have infected our economic system due to the corrupt governments in the past. Most of those who are criticizing government are the ones who are feeling guilty and are fearful that their ugly doings will be known to public when caught.
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      Shakri
      Dec 30, 2016 at 6:40 am
      Get Real ?? suggesting himself or the prople. weird minister
      Reply
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        B.Sukumaran
        Dec 30, 2016 at 7:44 am
        People were permitted to deposit old notes for tax payments in November. It has been reported that many traders and industrialists have made advance payment with old notes.Hence the increase One has to wait till the publication of quarterly results to know the real impact of demonetisation.
        Reply
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          SUPERFEKU
          Dec 30, 2016 at 5:46 pm
          narendra modi- FEKU NO.1amit shah - FEKU NO.2arun jaitley - FEKU NO.3ravishakar prasad- FEKU NO.4nitin gadkari - FEKU NO.5FEKU jindabad, bhaiyo aur behno abhi toh 2 saal aur jhelna hai
          Reply
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            Anand Dutta
            Dec 29, 2016 at 6:27 pm
            country being run by fools, everybody enjoy the circus created my honourable modi ji ;(
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              Hitesh
              Dec 29, 2016 at 4:11 pm
              Those who are vehemently opposed, those who have lost their corrupt anonymity will of course never be convinced of the gains. However, the majority of us feel that this is a historic move to improve transparency and ease India into the new world.
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                ChelseaFanKP
                Dec 29, 2016 at 4:39 pm
                Thank you AndyMy understanding of Economics in your opinion, and your understanding of sarcasm are exactly the same!Sleep well.
                Reply
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                  ChelseaFanKP
                  Dec 29, 2016 at 3:15 pm
                  @ RANJEET TPlease feel free to put out the data that was not selected by the FM. Also, do enlighten us as to what was the cost of implementing this disastrous move and how much higher in terms of percentage and figures is it higher than that of any benefits. I would actually like to know the cost side in terms of statistical data. You seem to know them, so please be kind enough to enlighten us.
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                    RANJEET T
                    Dec 29, 2016 at 2:53 pm
                    govt cannot save its face by putting out selective data. Ground reality is much different, the cost of implementing this disastrous move alone outweighs any benefit (if any) the move has or will produce. NO GAIN, ALL PAIN. KHODA PAHAD , NIKLI CHUHIYA
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                      RANJEET T
                      Dec 29, 2016 at 5:05 pm
                      Let me illuminate all you fools, FM gave Income Tax data only which was bound to rise given demonetisation move, lets not forget that after public outcry1)road tol-ltax was removed which govt needs to compensate to tool tax booths, why this data was not shared?2)service charge on debit card transactions was removed as govt changed its narrative to digital economy which again needs to be compensated to banks again this data not shared3)govt didn't share any data on no. of people who lost their lives in process of demonetization; also bank staff had to work extra hours to tackle crowds of common people exchanging/depositing their old notes. human cost can never be calculated4)cost of printing new money also needs to taken into account. jaitley omitted this data also5)in last millions of people had to stand to queue losing so many man hours when some productive work could hav been done instead.fm shud calculate this cost also.the w exercise when seen in totality looks futile and govt is just trying to save its face by putting out data as per its convenience while common man continues to battle with cash crunch.
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                        RANJEET T
                        Dec 29, 2016 at 5:20 pm
                        i hav already posted detailed of costs but for some reason moderator is not publishing it . request moderator to publish it
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                          HSun
                          Dec 29, 2016 at 5:05 pm
                          ground reality.... -- Dangal’ box-office collection Day 5: Aamir Khan film crosses the Rs 150-crore mark.... and is now racing towards the Rs 200-crore mark....demonetisation effect......
                          Reply
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                            Andy Gould
                            Dec 29, 2016 at 4:19 pm
                            Do you have all the data for our perusal??? If not just shut up!!!!
                            Reply
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                              Andy Gould
                              Dec 29, 2016 at 4:19 pm
                              Obviously, you do not know anything about economics! If you can add and comprehend just add the monies that have been deposited into banks. You will realize how much money is now available for lending. Just one factor to point out!
                              Reply
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