With the first anniversary of the fateful (un-fateful for some) Demonetisation approaching the, BJP and their governments have geared up to put before the public their report card. The report card does not actually mean to show as to what happened during and after the whole exercise but, yes it deems to present a good picture of the economic system before the countrymen.
The Congress has announced to observe a ‘black-day’ in the aftermath of the whole exercise while the BJP has resolved to make the citizenry aware that it is ‘Anti-Black Day’.
In a series of connected revelations over the black money trail, the recent leak of Paradise Papers by International Consortium of Investigative Journalists (ICIJ), has given another kick-start to the black money crusade led by Narendra Modi.
The events have been followed by a very optimistic outlook by the our Finance Minister Arun Jaitley who has said that after the Paradise leaks there is nothing more left to be done in India to curb black money and the shadow economy. Meanwhile, the CBDT has released a list entities to be brought into the net for siphoning INR 792 crores, in offshore accounts which is a trail brought to light by the Panama Leaks of Mossack Fonseca Firm.
The latest information that the government has provided regarding the DeMo and its positive impacts include a handsome addition of taxpayers, who, though are not within the tax bracket but will certainly add to the transparency and health of the economy.
The government has also de-registered as many as 2.44 lakh shell companies that had been used for dubious transactions, and with their directors barred from future registrations the scenario seems to be sorted for now.
The overall impact of the DeMo has also been assessed to have been beneficial for the loss laden banking sector which is now dealing with surplus liquidity and will also come out with recapitalisation bonds.
The economic ecosystem that has been slow has been attributed to the dent made on the shadow economy being hampered due to positive measures taken since the Demonetisation exercise. The RBI and NPCIL have also released periodic figures showing the rise in the number of online transactions via e-wallets and payment channels which have further given a new meaning to the transparency crusade.
Though a lot has to be doe yet, the government has calibrated a list of taxpayers who will be subjected to detailed investigation for tax evasion and income graft. The undisclosed income figures have seen a 29% increase which has a whole new meaning for the government. The DeMo has also lowered the price of real estate where black marketing and profiteering was rampant, and now the dreams of affordable housing may be fulfilled too.
The overall picture that is pivoted on the health of the banking sector and financial inclusion has given banks enormous potential to catapult their growth and kick starting the economy from a whole new dimension.
The shadow economy crusade may get a new life with the Paradise leaks which will see a greater international co-operation and better transparency in global business transactions.
Thus we hope that the anniversary of the DeMo brings a new sense of revival for the economy and we move towards a more sustainable economy which is not opaque.