‘Note ban a bold step’

New Delhi Finance Minister Arun Jaitley described demonetisation as "bold and decisive" measure saying it will have a multiplier effect on the economy and make GDP cleaner, bigger and real.

"Demonetisation of high denomination bank notes was in continuation of a series of measures taken by our Government during the last two years. It is a bold and decisive measure.

For several decades, tax evasion for many has become a way of life," he said in the Budget speech of 2017-18. Drop in economic activity, if any, on account of the currency squeeze during the remonetisation period is expected to have only a transient impact on the economy, he said.

Demonetisation seeks to create a new 'normal' wherein the GDP would be bigger, cleaner and real, he said, adding, "this exercise is part of our Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding".

He also said demonetisation has strong potential to generate long-term benefits in terms of reduced corruption, greater digitisation of the economy, increased flow of financial savings and greater formalisation of the economy, all of which would eventually lead to higher GDP growth and tax revenues.

Noting that the demonetisation helps to transfer resources from the tax evaders to the government, he said, it can use them for the welfare of the poor and the deprived.
Disappointing: Nitish, Lalu

Bihar Chief Minister Nitish Kumar and his ally RJD chief Lalu Prasad said Budget 2017-18 is “disappointing” for people, particularly the poor, farmers and youths. .

The Chief Minister said he expected special packages for Bihar but there was no such mention in the budget. “Bihar got nothing new in the budget.”

Kumar questioned the Centre’s silence over how much black money returned to the banks after demonetisation and what benefit did the November 8 move bring to the Indian economy.

“Why has Finance Minister Arun Jaitley in his budget speech in parliament not given any information about how much black money returned following demonetisatiion and the benefits of demonetisation.”

Lalu said it was a ‘nirashajanak’ (disappointing) budget as there was no relief for the common people, who have been fighting for survival after demonetisation.
Contractionary: CPM

The CPM said the budget 2017-18 presented by Finance Minister Arun Jaitley was a "contractionary" budget, one which fails to spark expansion of economy.

"We are calling it a contractionary budget, as opposed to an expansionary budget as it is not expanding domestic demand.

There is decline in revenue expenditure, no employment generation and it is seeking to hike indirect taxes, which will burden the common man," said Communist Party of India (CPI-M) General Secretary Sitaram Yechury.