Currency Demonetisation and Future course of Indian Economy

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Mukhi
BRFite -Trainee
Posts: 14
Joined: 12 Jul 2010 07:17

Re: Currency Demonetisation and Future course of Indian Economy

Postby Mukhi » 03 Dec 2018 01:55

It seems the Debate on DeMo has gone to For Vs Against. The fact is, there will always be people for it and against it.

Let’s look at it a little differently. In a simple term, Does Benefit of doing DeMo outweigh shortcomings?
Option 1. What is Positive of DeMo.
Option 2. What is Negative of DeMo.
Option 3. What if DeMo was not done.

For Option 1.
1. Economy Formalized.
2. More People turning towards Electronic Transection.
3. Fake Bills came under check.
4. Tax Paying Citizen number increased substantially.
5. Banks Recapitalized for free.
6. Though not proven directly, there is a substantial correlation between stone throwing crowd in JK and Naxal Attacks going down drastically.
7. BJP gaining a key State of UP in assembly. This would result in net gain in GDP if situation improve under BJP.
8. Economy impact was “Temporary” and NOT long term as preached by opposition.
9. Real estate Properties selling at a cheaper price then before DeMo

For Option 2.
1. Normal Public had to suffer discomfort of various degree.
2. GDP growth rate dipped Temporarily.
3. Cash church for a limited time.
4. No one of importance really got caught with “Black Money”
5. Small Merchants who conduct business in mostly cash suffered.

Option 3.
1. We still would have parallel economy.
2. Parallel Economy = Less Taxes collected = Less for Investment in Infra etc. so on and on; Domino Effect
3. If the growth was to not dip temporarily, the RBI would be up and arm, raising interest rates to control inflation.
4. More landing crunch, thus resulting slowdown.
5. No effective way to check fake currency.

Therefore, looking at above, I feel, it was worth doing DeMo.

Neshant
BRF Oldie
Posts: 4840
Joined: 01 Jan 1970 05:30

Re: Currency Demonetisation and Future course of Indian Economy

Postby Neshant » 28 Dec 2018 03:18


Neshant
BRF Oldie
Posts: 4840
Joined: 01 Jan 1970 05:30

Re: Currency Demonetisation and Future course of Indian Economy

Postby Neshant » 28 Dec 2018 03:35

Mukhi wrote:Let’s look at it a little differently. In a simple term, Does Benefit of doing DeMo outweigh shortcomings?
Option 1. What is Positive of DeMo.
Option 2. What is Negative of DeMo.
Option 3. What if DeMo was not done.


Big misconception is that govt taking away people's earnings is a good thing.

Or that govt spends the money it takes from the earnings of people in a manner more beneficial to the economy than the person can spend it himself.

Politicians using tens of thousands of crores to write off farmers loans to get themselves elected certainly does not sound like it is in the best economic interest of the nation. The earnings of the many simply gifted away.

As a general rule, money a person earned through honest means should remain in his hands and not be stolen by inflation, confiscation or in the name of numerous other fancy and nonsensical economic theories.

Govt should be funded via a consumption tax (like the GST).

Mukhi
BRFite -Trainee
Posts: 14
Joined: 12 Jul 2010 07:17

Re: Currency Demonetisation and Future course of Indian Economy

Postby Mukhi » 28 Dec 2018 06:36

Poof
Deleted as unnecessary political rant. Discussions will be only with data

prasannasimha
Forum Moderator
Posts: 1036
Joined: 15 Aug 2016 00:22

Re: Currency Demonetisation and Future course of Indian Economy

Postby prasannasimha » 28 Dec 2018 09:24

Mukhi stop any political rants. If you have real data show it. Persisting will result in bans

ArjunPandit
BRF Oldie
Posts: 2432
Joined: 29 Mar 2017 06:37

Re: Currency Demonetisation and Future course of Indian Economy

Postby ArjunPandit » 03 Jan 2019 00:33

Neshant wrote:Big misconception is that govt taking away people's earnings is necessarily a good thing.



Neshant wrote:Govt should be funded via a consumption tax (like the GST).


This is the most important part, and very rightly so.
To support your first point, that's almost always the case that from a short/medium term financial perspective govt operations are inefficient, in many cases they dont aim as well. Simply because employment is also one concern.

disha
BR Mainsite Crew
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Location: gaganaviharin

Re: Currency Demonetisation and Future course of Indian Economy

Postby disha » 03 Jan 2019 05:07

Why rNDTV was complaining against demonetization.

One of that is the alleged involvement of NDTV. Income Tax officer Sanjay Kumar Srivastava, who has been exposing financial irregularities by NDTV, had made a sensational claim that P Chidambaram had parked his bribe money in the controversial media house.


Do read the rest at:

https://www.opindia.com/2018/11/aircel-maxis-with-cbi-getting-sanction-to-prosecute-p-chidambaram-a-relook-at-ndtv-link-and-the-it-officers-letter-to-cbi/

With CBI getting sanction to prosecute former union minister P Chidambaram in the Aircel-Maxis case, the investigation into the case has entered its final phase. P Chidambaram and his son Karti are accused of receiving a bribe in exchange for illegal approval to the Aircel-Maxis deal granted by the then finance minister.

With the case finally gaining momentum, it is time to revisit some other aspects of the case. One of that is the alleged involvement of NDTV. Income Tax officer Sanjay Kumar Srivastava, who has been exposing financial irregularities by NDTV, had made a sensational claim that P Chidambaram had parked his bribe money in the controversial media house.

In an 88 page letter written to the CBI chief in April this year, Srivastava had said that “NDTV Ltd. needs to be investigated over parking of bribe of US $40 million by Maxis and its owner T. Ananda Krishnan (accused in the Aircel-Maxis case) on behalf of P Chidambaram and Karti P. Chidambaram for obtaining FIPB approval in Rs.3500 crores. Aircel-Maxis deal fraudulently claiming the proposal for Rs.180 crores only when gross value of the proposal was to be considered and which has been hushed up by certain IRS officers in lieu of bribe paid by NDTV Ltd.”

...

Srivastava has noted that CBI is investigating multiple cases of bribes paid by NDTV to Income Tax officers and embezzlement of ₹1,46,82,836 from government account by NDTV. According to him, these cases and the case of bribe received by Karti Chidambaram are interrelated and interconnected. Because P Chidambaram was the final authority involved to grant necessary approvals and he is the common thread in all criminal conspiracies and bribe transactions, says the letter.


Mukhi
BRFite -Trainee
Posts: 14
Joined: 12 Jul 2010 07:17

Re: Currency Demonetisation and Future course of Indian Economy

Postby Mukhi » 06 Jan 2019 12:45

prasannasimha wrote:Mukhi stop any political rants. If you have real data show it. Persisting will result in bans


Please check your email as I disagree with your judgement.
Moderator note
You may disagree with whatever. This is not a place for a political discussion. If you persist you will be banned. Consider this as a final warning.

pralay
BR Mainsite Crew
Posts: 514
Joined: 24 May 2009 23:07
Contact:

Re: Currency Demonetisation and Future course of Indian Economy

Postby pralay » 06 Jan 2019 13:48

Mukhi wrote:It seems the Debate on DeMo has gone to For Vs Against. The fact is, there will always be people for it and against it.

Let’s look at it a little differently. In a simple term, Does Benefit of doing DeMo outweigh shortcomings?
Option 1. What is Positive of DeMo.
Option 2. What is Negative of DeMo.
Option 3. What if DeMo was not done.

For Option 1.
1. Economy Formalized.
2. More People turning towards Electronic Transection.
3. Fake Bills came under check.
4. Tax Paying Citizen number increased substantially.
5. Banks Recapitalized for free.
6. Though not proven directly, there is a substantial correlation between stone throwing crowd in JK and Naxal Attacks going down drastically.
7. BJP gaining a key State of UP in assembly. This would result in net gain in GDP if situation improve under BJP.
8. Economy impact was “Temporary” and NOT long term as preached by opposition.
9. Real estate Properties selling at a cheaper price then before DeMo

For Option 2.
1. Normal Public had to suffer discomfort of various degree.
2. GDP growth rate dipped Temporarily.
3. Cash church for a limited time.
4. No one of importance really got caught with “Black Money”
5. Small Merchants who conduct business in mostly cash suffered.

Option 3.
1. We still would have parallel economy.
2. Parallel Economy = Less Taxes collected = Less for Investment in Infra etc. so on and on; Domino Effect
3. If the growth was to not dip temporarily, the RBI would be up and arm, raising interest rates to control inflation.
4. More landing crunch, thus resulting slowdown.
5. No effective way to check fake currency.

Therefore, looking at above, I feel, it was worth doing DeMo.

Add to Option 2 that:
6. People having black-money do not stash it in homes in form of cash, so they largely escaped as apparent from point 4 so DeMo was ineffective or insufficient to rein on them.
7. The high-value currency notes(500,1000etc), which helped the black transactions still exist, govt. rather introduced even higher value notes(rs.2000), this makes the economic cleansing temporary, and so the parallel economy still exist.
8. People using digital transaction had to pay commissions to foreign companies for digital transactions as the desi options were very very limited.

prasannasimha
Forum Moderator
Posts: 1036
Joined: 15 Aug 2016 00:22

Re: Currency Demonetisation and Future course of Indian Economy

Postby prasannasimha » 07 Jan 2019 07:35

I have deleted your political statements and kept your nonpolirical one. I repeat any poltical statements will lead to abans on this thread. Simple as that. BRF has specifically removed poltical discussions after some issues. Doing it will be at your own peril. If you want to do a political discussion please go to another spin off list. Not here. Tgere will be no more discussions wrt this.

hanumadu
BRF Oldie
Posts: 4264
Joined: 11 Nov 2002 12:31

Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 10 Feb 2019 06:30

https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-taxmen-dig-up-graveyard-unearth-gold-diamond-cash/articleshow/67894063.cms

Documents, money, gold and diamonds worth 400 crores illegal income found in a grave yard. These kind of people might be waiting desperately for 2019 elections. Two more terms for Namo needed to permanently squash all such hopes and set them straight.


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