The BJP on Saturday termed demonetisation a “sacred movement” that will lead to “bigger and cleaner GDP”. While Finance Minister Arun Jaitley said demonetisation resulted in black money making its way to bank accounts and the additional money will boost developmental projects, the BJP’s economic resolution, passed on the second and concluding day of the party’s National Executive, accused the Opposition of trying to defame the Government by destroying the country’s positive environment.
“In this sacred movement across the country, the common people were taking upon themselves the temporary suffering of standing in queues with full enthusiasm and positive energy, but the Opposition had become negative with destructive energy to defame the Central Government and trying to destroy the positive environment of the country,” the resolution said.
“Black money has been deposited in the banks. It has lost its anonymity. The informal economy will now increasingly integrate with the formal economy. This will lead to higher revenues with the States and the Centre. It will lead to bigger and cleaner GDP,” the resolution maintained.
Stating that demonetisation was necessary for decimating the parallel economy of black money and for the smooth functioning of the GST in near future, the resolution pointed out, “Today, there is more money with the banks to lend. Interest rates have moved downwards.” Maintaining that the BJP firmly believes that digital economy will stop the leakage of taxes, it asked party workers to push for “digital economy”.
Briefing reporters on the resolution and Jaitley’s speech in the closed-door meeting, Union Minister Nirmala Sitharaman said the “bold and historic decision” underlined a “firm and visionary” leadership that puts the country above party and individuals. “The Rs500 and Rs1,000 notes hidden in mattresses, something people would say symbolically is now in bank accounts. It will help development,” she said.
Jaitley also cited figures to assert that revenue of most states had not suffered and in case of some like Uttar Pradesh and Madhya Pradesh it had even increased. West Bengal could be one State where it declined, he said even as he took a dig at the Mamata Banerjee Government by adding that the States can raise revenue by running efficient Governments.
The BJP asserted that as per several surveys, there was a popular support for the demonetisation decision. “This is reflected in the fact that even after 50 days, there was not a single major incident in the country. There was no loss of public property and there was no loss of people’s patience anywhere in the country,” the resolution said.
Rebutting criticism that demonetisation was abrupt, not a well though-out call, the resolution said it was taken with full-fledged preparations. BJP’s national executive believes that the country’s 107 crore mobile phone connections, 147 crore bank accounts including 117 crore savings bank accounts and 25 crore Jan Dhan accounts, 35 crore smart phones, more than 40 crore ADHAR-linked accounts and more than 75 crore debit cards make it an “enabled” society for digital transactions, it said.
BJP’s ‘Kisan Morcha’ chief Virendra Singh Mast claimed at the meeting that demonetisation also resulted in lack of wasteful expenditure by farmers, a community which, opposition parties claimed, has suffered most due to cash crunch.
listing the Government’s efforts to curb black money leading to demonetisation, the resolution cited constitution of a SIT, introduction of Income Declaration Scheme, Jan Dhan Scheme, Black Money Act, Bankruptcy Insolvency law, DRT Amendment law and Benami Property Act.
The Double Taxation Avoidance Treaties with Mauritius, Cyprus and Singapore which earlier enabled the round tripping of Black Money were re-written, it said. The central government has also promoted cashless transactions through UPI, USSD, AEPS and Rupay Card. All these steps are towards the corruption free India, it said.