Demonetisation, not a Reform but a Monumental Tragedy - Chidambaram
THE former Finance Minister P. Chidambaram said yesterday, "I don't think demonetisation is a reform. It is a monumental tragedy which is anti-poor and has put millions in misery and hardships." The former FM also said:
++ By demonetisation, the Modi government created a myth that all cash is black money and all black money is cash.
++ All cash is not black money; black money is the income that has evaded tax, and there are large sections of the people who have cash but who do not evade income tax.
++ Agricultural income is not subject to taxation, income of charities is exempted, as is the income of religious trusts. Also, the people of Northeastern states do not have to pay income tax and they have cash in hand. Is that all black money? Is the money in the hands of farmer black money?"
++ I think whoever planted the idea of demonetisation did not know elementary economics. He should be asked to enrol in an undergraduate school of economics.
++ It is like a surgeon operating upon a patient without knowing whether the patient has any disease at all, which part of the patient is affected and what kind of surgery is required.
++ If a farmer has some cash in hand, it is not black money, but when he pays, say, Rs 1,000 as fees to a doctor or a lawyer and does not get a receipt, then this Rs 1,000 becomes black money. But if the doctor or lawyer goes to a restaurant and buys a meal and the restaurateur gives him a bill for Rs 1,000, then the same Rs 1,000 note again turns ‘white'
++ As long as there is demand for black money, it will be generated; demonetization is no answer for black money. The answer is to stamp out corruption, stamp out the sources which generate black money.
He also tweeted:
++ Desperate govt resorting to desperate measures. Breaking PM's promise of Nov 8 and FM's assurance of Nov 11.
++ RBI makes new rule on deposit, FM contradicts. Who should citizen believe? Neither has credibility.
++ Hoarders have laundered their old notes. The poor and middle class left high and dry.
++ Old notes usable until Dec 15. Why can't we deposit remaining notes until Dec 30 as notified?