1. Hasty implementation of GST, demonetisation will hit GDP further: Manmohan Singh

Hasty implementation of GST, demonetisation will hit GDP further: Manmohan Singh

Former prime minister Manmohan Singh once again warned of sharp fall in the GDP, saying that the hasty implementation of the GST and the demonetisation will hit the GDP further. He had predicted a fall of 2 per cent in GDP in the aftermath of the demonetisation exercise in the Parliament in November last year.

By: | Published: September 18, 2017 1:38 PM
Manmohan Singh, Manmohan Singh news, Manmohan Singh latest news, Manmohan Singh on jobs in india, Manmohan Singh on business in india, business opportunity in india, language diversity in india Former prime minister Manmohan Singh once again warned of sharp fall in the GDP, saying that the hasty implementation of the GST and the demonetisation will hit the GDP further. (PTI)

Former prime minister Manmohan Singh once again warned of sharp fall in the GDP, saying that the hasty implementation of the GST and the demonetisation are bound to affect the economic growth adversely. In an interview to CNBC-TV18, Manmohan Singh said, “Both demonetisation and GST have had some impact. GST was put on practice in haste, and there are a lot of glitches which are now coming out.”

The GDP for the first quarter (April-June) of financial year 2017-18 slumped to a three-year low at 5.7 per cent, far lower than 7.9 per cent recorded in the same quarter last year. The former prime minister had predicted a fall of 2 per cent in GDP in the aftermath of the demonetisation exercise in the Parliament in November last year. He had called the demonetisation exercise a monumental disaster, organised plunder and legalised loot.

After ten months of the demonetisation exercise, Manmohan Singh, once again, holds it, along with hasty implementation of the GST, responsible for badly affecting the informal and the small scale sector, which account for ninety per cent of employment in India.

“Both (demonetisation and GST) would affect the informal sector, the small scale sector. These factors today are responsible for GDP fall. Ninety per cent of our employment is informal sector, and the withdrawal of 86 per cent of currency, also the GST because it was put on practice in haste, are bound to affect the GDP growth adversely,” Manmohan Singh told CNBC-New18.

Even though in April, when the GST bill was passed in the Parliament, Manmohan Singh hailed it as a “game-changer”, he did not forget to caution the country from the difficulties in its implementation.

On August 30, the Reserve Bank of India said that nearly 99 per cent of junked Rs 500 and Rs 1,000 notes have returned to the banking system, raising questions on the efficacy of the government’s note ban decision.

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    A.Bhatia
    Nov 8, 2017 at 12:45 am
    "Singh thinks the Goods and Services Tax (GST) as well as demonetization have hit the economy, but while GST is a good idea implemented badly, the very idea of demonetisation was wrong." Such serious criticism from MMS(a well known personality on economics), need to be answered with convincing facts and figures by the govt.The perception among the people on Note ban and GST, is not good, and people are feeling hard pressed and in more difficulties due to Note ban and GST. It would have been better if the govt , would have taken opposition leaders like MMS, in confidence before announcing important policy decisions like,note ban and GST. Now also, Govt may have a meeting with all experts on finance and take remedial measures. Time has come when our leaders must rise above their party's interest and must think for the all round development, without much criticism on highly important and sensitive matters.
    Reply
    1. Roy Aranha
      Sep 20, 2017 at 2:49 pm
      HAVE TO CHANGE A SYSTEM OF THINKING IN INDIA WHICH IS DIFFICULT THAT WE HAVE TO BELIEVE QUALIFIED PERSONS NOT JOKERS
      Reply
      1. D
        Debashis Mukherjee
        Sep 19, 2017 at 12:42 pm
        Sorry Cannot understand the relation between GST/ Note Ban and GDP although great Economists are talking about it Like Dr.MMS. If he calls it a organised loot then what happened in his time when he was the PM? Was that a Dis-organised Loot ?? History will never be Kind to him. GDP is falling because in the International market demand has slowed comparatively in relation to previous two years. Demand has fallen in China, Taiwan Japan USA, name them everyone is facing the same crisis. So our Industry bosses are watching, Reliance was sharp to launch JIO in this period to rake up handsome profit ! Banks are flushed with funds and scared of loaning MSME and SME and only looking for the likes of Mallya!! I think Note ban made some marvelous results. Terrorism and Naxalists have fallen systematically. People must talk about it .
        Reply
        1. Jayesh Sheth
          Sep 19, 2017 at 7:37 am
          Dr manmohansingh is a icon of reforms.And what he had said perfect.Because only 2 things increase while 2things goes decreasing 1.share market is going up and economy(gdp) is on a downward trend.2>international price of crude decreasing(barring few 8 days due to hurracane probelm)and rupee appreciate (although crude is trading in international price) The local petrold and other proudcte prive is increase at highest level when price of crude wad 100 at international market and rupee was 68 .Although one can understand govt income is only by way on petrol in excise duty and STT in stock market.But it effect a lot of in the economy.Unless private money will not come in the industry.the probem rmains. and gdp of 2ndqtr. looks 5.45 .
          Reply
          1. I
            italy with love
            Sep 18, 2017 at 10:56 pm
            maun spoke. all hail the queen of italy.
            Reply
            1. Luis Root
              Sep 18, 2017 at 7:39 pm
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              Reply
              1. Arun Kottur
                Sep 18, 2017 at 7:17 pm
                Sir make your fool proof scheme public
                Reply
                1. D
                  DP
                  Sep 18, 2017 at 6:46 pm
                  Monumental disaster, organised p er and legalised loot going on..Example: Petrol prices
                  Reply
                  1. I
                    italy with love
                    Sep 18, 2017 at 10:58 pm
                    you are enjoying 50 percent subsidy on gas, you are enjoying 50 percent subsidy in trains tickets and so much more.. why don't you ever raise voice against it? only 4 percent people pay taxes and most people do cash business and don't pay taxes,, why you never raise voice gainst it?
                    Reply
                    1. D
                      Dili
                      Sep 19, 2017 at 11:08 am
                      As if all the politicians are travelling in a two wheeler.
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