Jaitley slams MMS's claims, lambasts UPA's black-money policy
Finance Minister Arun Jaitley slammed former Prime Minister Manmohan Singh's comments on demonetization, saying the maximum black money was accumulated during the UPA tenure. Launching an attack on the Congress, he said "Commonwealth Games scandal, the 2G corruption scandal, the coal block scandal all took place during this period." He slammed opposition parties for not participating in a discussion and resorting to rampant hooliganism.
PM Modi's demonetization move
On 8 November, Indian Prime Minister Narendra Modi announced a sudden economic change by abolishing Rs.500 and Rs.1000 currency notes. Modi's move targeted the rising black money menace and corruption in the country. In his address, he stated that new Rs.2000 notes will be issued. This was pitched to be one of the most drastic policy change across the world in decades.
Demonetization to decide on Modi's future fortune
With the demonetization move came heavy criticism and much appreciation. Reports stated that the demonetization move could hinder long-term benefits of the ruling party Bharatiya Janata Party (BJP). Many low-income families struggled to get their hands on cash for buying seeds and selling their produce. Low-income earners were the most affected, since they rely on cash transactions and most do not have bank accounts.
Management of demonetization critical for implementation
"A lot will yet depend on the agility of the federal government to adequately and quickly respond to the pain felt by large sections of the population," Jan Zalewski, a senior analyst at Verisk Maplecroft, said.
Congress protests against demonetization move
Nearly fourteen days after the demonetization move, the Congress launched protests, stating that it was an unfair decision. The party's leaders said that their protests will be held for eight days, with a dharna outside the RBI's office. Congress said that with the new change, the country's poor are bearing the brunt while the rich are using unfair means to circumvent rules.
Congress highlights mismanaged move
"Today there is serious mismanagement all around due to demonetization. Small businesses and industries are suffering and their business perishing. Farmers don't have money to buy seeds or fertilizers. Our one-point-agenda is: the innocent be saved hardships and black money hoarders brought to book."- Congress
Manmohan Singh criticizes PM Modi's mismanaged demonetization
Former PM Manmohan Singh addressed the Rajya Sabha and condemned BJP's poor implementation of the demonetization move. He termed the entire fiasco surrounding demonetization as 'monumental mismanagement'. Singh also stated that this would erode people's faith in the country's banking sector. Referring to people who said that demonetization would be good in the long-run, he quoted "In the long run we are all dead".
Singh estimates GDP to decline by 2%
"It is important to take note of the grievances of the people suffering. 60-65 people have lost their lives. My view is that GDP growth can fall by 2 per cent and that is an underestimate," said Manmohan Singh.