Skip to main content

Notebandhi is nasbandi of fastest growing economy in world, will not produce any long-term benefits

By Kiran Pandit*
If the objective of the government was to fight corruption then very clearly notebandhi (demonetization) will not hurt corruption. How do pink coloured notes prevent babus and politicians from not accepting bribes?
Black money that is in our system is not corruption. Demonetization may reduce black money, there maybe more money coming into the banks and people will resort to cashless transactions. That's fine. But how does this make the corrupt honest?
Basically demonetization is barking up the wrong tree.
It has helped only:
  1. Removal of fake currency ( microscopic amount)
  2. Put the political parties in a fix before major elections.
Already, its business as usual who are with the income tax officers (ITOs). Almost all chartered accountants (CAs) of Delhi have sorted out their clients black cash and are neat and clean to file the returns.
It’s business as usual in Land and Development Office (L&DO), Delhi Development Authority (DDA) and municipalities. Although property market is in miserable state, the bureaucracy is up to the same mischief. In small towns domicile certificates are still being given after a bribe (now in new currency). Without the bribe the babu will use his discretionary powers to delay giving it up to the last date for admission to tertiary institutes/colleges in the district headquarters.
The satta bazaar is as good as it was before 8th November.
The bootlegging is as usual. Liquor licences are sold to the highest bribe giver.
Police thanas are auctioned. The highest bidder is made the Thanedar/SHO.
Management of currency flow has been very badly handled. Lack of planning and poor implementation is clearly visible in the urban areas. What is happening in rural areas where there are hardly any bank branches? No one in the media cares to find out.
The repercussions of demonetization will be clearly seen in:
  1. No interest in investing in India by outsiders. NRIs are all waiting and watching. Foreign corporates are also backing off. 'Make in India' worst hit.
  2. Fall in foreign tourism. Hotels and tour operators are suffering as domestic tourism is badly hit. Atithi tum bhago! Indians loaded with black money used their money to make a foreign jaunt. Out bound tourism boomed. New Zealand is flooded with Indian tourists!
  3. Foreign exchange dealers stopped trading in Indian rupee.
  4. There is a very big rise in unemployment in unorganized sectors. Building and construction workers are the worst hit. Contract labour on daily wages is totally smashed. Government may claim success by talking of fall in property prices but the reality is that there are no buyers. The objective of generating 10 million jobs for 10 years is badly hit. In fact there will be at least a loss of 1 million/year jobs alone in housing sector for another year or two.
  5. All these raids by Enforcement Directorate (ED) and Income Tax (IT) are creating fears and drop in business confidence. What is being unearthed is just the tip of the iceberg and is serving only as propaganda. Indian business houses are dormant. No big ventures are being planned.
  6. Demonetization followed by raids has further empowered the bureaucracy and public sector bank management to make money.
  7. There are no major incentives to those who pay taxes properly. No tax benefits have been given to salaried classes. No benefit has been given to employers who properly employ workers with proper wage structure, provident fund deductions and ESI insurance provisions.
Was going towards cashless economy the main aim? What’s the point in bragging about sabjiwalas managing without cash? Cashless economy doesn't mean corruption free governance.
Demonetization hasn't been very successful anywhere in the world in the past. Demonetization in itself can't produce the desired results. It has to be a part of a complete package of well thought out and well timed economic and fiscal steps.
To me it’s a drive. Drives do not produce long term benefits. Just like Indira Gandhi's nasbandhi (sterilization) didn't make any impact on the population growth, this notebandhi is a nasbandi of the fastest growing economy in the world.
---
*Director (company) at Pandit Properties Investment Ltd. Lives in Auckland, New Zealand. For source click HERE

Comments

TRENDING

Banned? Indian ports 'received' 38 US plastic waste containers reexported from Indonesia

By Rajiv Shah
An Indonesia-based international environmental watchdog group has dug out what it has called “a global pollution shell game”, stating how officials in Indonesia approved re-exports of “illegal” US waste shipments containing plastics mainly to India, as also to other Asian countries -- Thailand, South Korea and Vietnam -- instead of returning them to the US “as promised.”

Gujarat refusal to observe Maulana Azad's birthday as Education Day 'discriminatory'

By Our Representative
The Gujarat government decision not to celebrate the National Education Day on !monday has gone controversial. Civil society organizations have particularly wondered whether the state government is shying away from the occasion, especially against the backdrop of "deteriorating" level of education in Gujarat.

Cops' 'inability' to deliver justice? Model Gujarat ranks 12th among 18 major states

By Rajiv Shah
A Tata Trusts study, released in Delhi on Thursday, has ranked “model” Gujarat 12th out of 18 major states it has analysed across India to “assess” the police's capacity to deliver justice. Several of the advanced states such as Tamil Nadu, Karnataka, Punjab, Haryana, Maharashtra, Andhra Pradesh and Telangana as well as some of the so-called Bimaru states such as Odisha, Jharkhand and Chhattisgarh are found to have ranked better than Gujarat.

People's pressure? GPCB mining cancellation 'notice' to top cement unit in Gujarat

By Sagar Rabari*
Environmental Clearance (EC) was given to Ultratech Cement Co Ltd for limestone mining in villages Talli and Bambhor of Talaja taluka in Bhavnagar district of Gujarat on January 5, 2017. EC was issued ignoring, overriding and undermining opposition from local farmers to mining activity in the area. The mining in these two villages covers an area of 193.3268 hectares (ha), while the entire project is spread over an area of 1,715.1311 ha.

Bullet train acquisition: Land holding worth Rs 1.5 crore, Gujarat govt 'offer' Rs 8 lakh

By RK Misra*
Foundation stones laid by Prime Minister Narendra Modi litter India’s cities, towns and villages, but there are few projects which he has pursued with such perseverance and tenacity as the Ahmedabad-Mumbai bullet train one. However, the overwhelming state power notwithstanding, the farmers, whose lands are being acquired for the Modi government’s dream project, have no plans to give up the fight.

NHRC notice to Gujarat chief secretary following silicosis deaths in Rajkot

By Our Representative
The National Human Rights Commission (NHRC) has asked the Gujarat chief secretary and the district magistrate, Rajkot, to respond to a complaint filed by health rights activist Jagdish Patel of the People's Training and Research Centre (PTRC), Vadodara, regarding the alleged death of Raju Prakash Parihar and two others reportedly because of silicosis, a fatal occupation disease, in Rajkot, one of Gujarat’s top cities.

Visually challenged lady seeks appointment with Gujarat CM, is 'unofficially' detained

By Pankti Jog*
It was a usual noon of November 10. I got a phone call on our Right to Information (RTI) helpline No 9924085000 from Ranjanben of Khambhat, narrating her “disgraceful” experience after she had requested for an appointment with Gujarat chief minister Vijay Rupani. She wanted to meet Rupani, on tour of the Khambhat area in Central Gujarat as part of his Janvikas Jumbesh (Campaign for Development).