By N. S. Venkataraman
With the side yesteryear side Indian parliamentary election solely a few months away, critics of Narendra Modi regime in addition to opposition parties are leveling several criticisms in addition to allegations which are non adequately backed yesteryear reliable facts in addition to figures. In the coming months, it is probable that the criticisms volition decease to a greater extent than abrupt in addition to to a greater extent than vicious. With constant motility yesteryear the critics in addition to opposition parties, that are bordering on generating personal hatred against Mr. Modi in addition to which are highlighted yesteryear the media in addition to fifty-fifty supported to some extent yesteryear department of the media, it appears that atleast some department of the people volition endure carried away yesteryear such propaganda. Of the several criticisms, the most focused ane inwards the coming months would endure the demonetization conclusion of the Modi regime 2 years back.
What critics say?
The demonetization conclusion is criticized on the next 3 counts.
The kickoff criticism is that In the currency circulation of closed to Rs. 18.5 lakh crore, if almost the entire amount receive got been returned to the banking organization afterwards demonitisation every bit claimed yesteryear the Modi government, thus it solely agency that in that place is no dark money. Surprisingly, such criticism has been made fifty-fifty yesteryear the old Finance Minister inwards Manmohan Singh regime , who should know better. He has asked “where is the dark money?”
The instant criticism is that the dark coin inwards Republic of Republic of India is to a greater extent than inwards the class of gilded that is hoarded in addition to cash invested inwards existent estate. While demonetization was aimed at bringing out the dark coin inwards cash form, why has Modi regime ignored the hoarded gilded in addition to revenue enhancement evaded dark coin invested inwards existent estate?
The tertiary criticism is that spell it is claimed that demonetization has wiped out the dark money, the dry reason reality is that dark coin is inwards circulation inwards Republic of Republic of India today in addition to almost returning to the degree of pre demonetization era.
Criticisms non based on audio logic
A careful analysis would betoken that the higher upwards criticisms are non based on audio logic.
When almost the entire currency inwards circulation earlier demonetization, exercise of which was non routed through the banking organization in addition to was the revenue enhancement evaded dark coin which contributed to parallel economy, was brought dorsum into the banking organization afterwards demonetisation, the objective of the demonetization to wipe out the dark coin was largely achieved. The query of the old finance Minister “Where is the dark money” is totally illogical.
The parallel economic scheme was causing havoc inwards the country, which contributed to high degree of corruption in addition to misuse of the revenue enhancement evaded dark coin inwards the parallel economic scheme for unlawful activities similar fostering terrorism, etc.
With regard to the criticism that the hoarded gilded in addition to existent estate bought alongside the dark coin has non been attacked yesteryear the demonetization measure, the fact is that demonetization stair out was followed yesteryear several steps to curb the corruption, of which ane of the of import ane was anti benami Act. After the promulgation of anti-benami act, closed to 17,000 high value existent estate transactions were attached yesteryear the government, which agency that the owners were deprived of the holding in addition to the coin invested yesteryear them inwards such existent estate was lost.
With regard to the hoarded gold, Modi regime has launched closed to 35,000 surveys to locate such hoarded gilded , cash etc. in addition to has already seized closed to Rs.. 4000 crore worth of gilded in addition to cash hoarded. The revenue enhancement evaders receive got confessed alongside regard to the undisclosed income of closed to Rs. 52000 crore. For all this money, they receive got been paying heavy penalization to the government.
Demonetisation yielding dividend
The demonetization measures are yielding results, every bit the bring out of those who receive got submitted returns to the income revenue enhancement authorities which was 3.8 crore inwards the yr 2014 has instantly reached 6.86 crore during Modi government’s 4 in addition to one-half years of governance. In this 4 in addition to one-half years, the bring out of persons who receive got paid income revenue enhancement receive got gone upwards from 6.4 meg inwards 2014 to 12.4 meg inwards 2018. In other words, inwards the final 60 years till 2014, solely 6.4 meg people were paying taxes. Now, afterwards the 4 in addition to one-half years of Modi governance, the bring out of revenue enhancement payers receive got gone upwards yesteryear closed to 100% to closed to 12.4 million.
The higher upwards figures are highly impressive showing that demonetization measures are paying dividend, which has resulted inwards significantly expanding the revenue enhancement base of operations inwards Republic of Republic of India in addition to the income revenue enhancement collected.
How pitiful people benefited yesteryear demonetization?
The critics inquire every bit to how the pitiful people receive got been benefited yesteryear demonetization measures in addition to they claim that the pitiful people receive got suffered. On the other hand, the fact is that Modi regime has launched many proactive programmes to aid the receive of pitiful people such every bit structure of thousands of toilets for pitiful solid holds, structure of houses for people belonging to lower income group, structure of hundreds of kilometres of route ways, extension of electrification to several villages in addition to remote areas in addition to others. Large investments are going into such essentially welfare oriented projects in addition to such investments receive got been possible due to the coin collected afterwards demonetization yesteryear way of taxes, recovery of hoarded coin in addition to penalization imposed on undisclosed income. Most of these investments receive got been managed without imposing additional taxes in addition to fifty-fifty the income revenue enhancement slab rates are beingness steadily reduced. Modi government’s scheme to innovate wellness insurance for pitiful is a stair out of non bad significance in addition to importance.
Wiping out trounce companies
While introducing the demonetization measure, Prime Minister Narendra Modi clearly in addition to categorically said that demonetization stair out is solely the kickoff pace inwards rooting out the corruption in addition to many to a greater extent than stringent measures would endure followed. True to his words, he introduced bring out of anti corruption schemes.
Amongst many measures, ane of the most pregnant ane is the identification of trounce companies in addition to forcing their closure. In the past, several operating companies receive got floated other missive of the alphabet pad companies that receive got banking concern concern human relationship but petty or no operation. Such missive of the alphabet pad companies were used yesteryear the fellowship owners to divert exercise of the income of the operating companies to these non-operating missive of the alphabet pad companies, which are called every bit trounce companies. When Modi regime insisted that all companies should submit their PAN bring out to the banks which were linked to the mobile bring out of fellowship owners in addition to their Aaadhar number, the companies without PAN bring out were identified in addition to removed. The coin inwards possession of trounce companies inwards the banking concern are frozen. Further, directors of trounce companies were largely barred from acting every bit directors inwards other companies. So far, closed to 2 lakh of such trounce companies receive got been closed in addition to some other closed to 2 lakh companies are beingness investigated. This is ane of the real of import steps inwards rooting out corruption.
Bankruptcy law
Another pregnant pace initiated yesteryear Modi regime is the introduction of Insolvency in addition to Bankruptcy Law. Earlier, when companies became sick in addition to defaulted inwards paying involvement in addition to main amount to the banks , the companies got closed in addition to employees were thrown out of jobs. But, the owners of companies went almost scot complimentary in addition to were non deprived of their assets.
With the introduction of Bankruptcy law, when the companies default inwards payment to the fiscal institutions, the affair is referred to the Insolvency Board in addition to the owners are divested of the ownership of such companies in addition to proposals to select over of such companies yesteryear other companies are invited.
Fearing such law, closed to 23000 companies receive got instantly come upwards frontward to settle their accounts alongside the financing institutions ,which resulted inwards financing institutions receiving nearly Rs. 83,000 crore afterwards the introduction of Insolvency in addition to Bankruptcy Law.
Need for holistic stance of demonetization
It is necessary to stance the demonetization stair out non every bit an isolated pace to origin out corruption in addition to dark coin but every bit exercise of the several other measures to accomplish this objective. Demonetisation stair out is a kickoff pace in addition to woman rear of the reform measures to origin out corruption. Therefore, it is necessary to select a holistic stance of the demonetization strategy of Modi government.
More measures needed
With regard to the criticism that the dark coin is instantly beingness generated fifty-fifty afterwards demonetization measure, ane has to select that this is a fact. Obviously, the corruption is deep rooted inwards Indian club in addition to seem to receive got decease exercise of life. There are many cases where bribe givers are likewise bribe takers in addition to the distinction is becoming thinner. In such circumstances, the remedy is introduction of to a greater extent than stringent measures similar to what receive got been taken inwards the final 4 in addition to one-half years yesteryear Modi government.
Finally, it needs to endure recognized that demonetization stair out every bit such is audio inwards regulation in addition to in that place is no demand to endure apologetic nearly this.
Criticism inwards vacuum
Former Prime Minister doctor Manmohan Singh has criticized the demonetization stair out inwards harsh terms. However, he has non suggested whatever alternate method to convey out the revenue enhancement evaded dark coin into banking system. Is the chore of doctor Manmohan Singh done yesteryear criticizing demonetization stair out but non suggesting whatever alternate strategy? Is it non criticism inwards vacuum?
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