Finance Minister Arun Jaitley clarified most of the doubts of the common man on demonetization. He also managed to throw some facts on it. Jaitley gave solid facts on the effect of remonetization and slammed opposition.
Jaitley said that with the critical part of the remonetization already behind us. There being no significant impact in a large number. If there are, it should certainly be much better in the weeks and months to come.
He said that “Assessments can be unreal, but revenue is real. Of course there would be areas that would also be adversely impacted but what was being predicted by the critics has to have a rationale with the revenue collections.”
He explained that huge amount of money has come to the banking system. Thus the impact on taxation and revenue collection is already visible. The lending capacity of banks have increased significantly.
Jaitley also shared some numbers. He said that central indirect taxes increased by 26.2% as of November 30. This also includes increase in excise duties by 43.5%, service tax by 25.7%, and customs duties by 5.6%.
He also said that compared to the November of 2015, on a year-to-year basis, the all the three indirect taxes collection is much higher in November 2016.
Jaitley said that critical part of remonetization is behind us now. In the field of agriculture, as well the Rabi sowing is 6.3% higher than last year.
He said that Life insurance businesses and international tourism have increased. He also indicated that air passenger traffic and petroleum consumption has increased. The flow into the mutual funds has increased by 11%.
Jaitley also tried to calm the common man. He said that the Reserve Bank has very large amounts of currency available. It will continue to support the market and its liquidity requirement.
He said that “amongst the currency which was in circulation on the 8th of November, a very large part has already been replaced. It would continue to be replaced to the extent that the market requires that currency.”