Arun Jaitley defends demonetisation, says cash encourages tax evasion

By: | Updated: February 9, 2017 5:14 PM

Union Finance Minister Arun Jaitley has today once again defended NDA government's demonetisation step in the country.

Cash is the biggest facilitator of the crime, he says. (Photo: LSTV)Cash is the biggest facilitator of the crime, he says. (Photo: LSTV)

Union Finance Minister Arun Jaitley has today once again defended NDA government’s demonetisation step in the country and said that the cash leads to shadow and parallel economy in the country. Speaking in the Lok Sabha today during the ongoing Budget session in the Parliament today he said that the country was high on cash economy, which encouraged tax evasion, corruption and a parallel economy in the country.

While maintaining that the cash is the biggest facilitator of the crime the finance minister also said that earlier the fiscal deficit quality was poor, as it was maintained by cutting expenditure, but now in last two years more was spend by the government than what was budgeted. Pointing out that India is now aspiring to be developed economy rather than a developing one, the finance minister also added the RBI which was earlier targeting 4 percent inflation is now targeting 3.6 percent.

Stressing that lakhs and crores of money returned to RBI after demonetisation step fas taken on November 8, he said that months of November and December were difficult months, but indirect and direct tax collections increased in December last year. While car sales gone up, two-wheelers’ sales have declined, he added.

During his speech, the finance minister also informed the lower House of the Parliament that the even as the expenditure on Infrastructure is Rs 3,96,000 crore, Rs 1,00,000 crore has been allocated to railway safety fund.

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While speaking about Goods and Services Tax (GST), he further said that after it’s implementation the country will also have an efficient tax system.

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