The Bharatiya Janata Party has called demonetisation an economic reform that formalised the economy in a big way. However, its own alliance partner LJP does not know how note ban benefitted the people. LJP Parliamentary Board Chairman Chirag Paswan reportedly wrote to Finance Minister Aun Jaitley asking him to list the benefits of demonetisation so that he can communicate it to people in the upcoming general elections.
A copy of the letter was also marked to Prime Minister Narendra Modi.
LJP MP Chirag Paswan’s letter to the FM was sent on December 12, a day after the BJP faced defeats in three states in the Hindi heartland. In the letter, Chirag requested information about “how the country benefited from demonetisation given it has been over two years since demonetisation was announced and 2019 Lok Sabha elections are also drawing close.” The LJP leader asked for a list of benefits to the country from demonetisation which he could then take to the people in the run-up to the elections.
The Prime Minister has been under attack for the currency ban as it hit economic growth and failed to weed out black money from the economy. Several economists and analysts say that demonetisation could not meet any of the government’s stated targets — black money, counterfeit currency and terror funding.
However, the government claims that demonetisation has helped it trace the roots of money in the economy. It further claims that the move has formalised the economy and the taxpayers base has significantly increased. The government also claims that it has delisted over 3 lakh shell companies that were being used for laundering black money.
The opposition, on the other hand, says that demonetisation cost millions of the jobs in the informal sector and hit the small and medium enterprises hard. Regardless of the opposition claim, demonetisation has not affected the BJP’s prospect in the elections. Soon after this decision, the saffron party swept the polls in Uttar Pradesh in 2017. From there, the demonetisation has not been a key issue in any of the state election.