Arun Jaitley claims demonetisation has resulted in black money making its way to bank accounts

BJP on Saturday termed the aftermath of demonetisation a “sacred movement” during which the masses accepted the temporary suffering with enthusiasm and asserted that black money has now been deposited in banks that will lead to high revenues and bigger and cleaner GDP.

The economic resolution passed at second and concluding day of the party’s national executive also accused the opposition of trying to defame the government by destroying the country’s positive environment and termed demonetisation a “brave move aimed at the poor’s welfare“.

“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,” it said.

Finance Minister Arun Jaitley claimed that demonetisation has resulted in black money making its way to bank accounts and the additional money will boost developmental projects.

“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 the bigger and the Cleaner GDP,” the resolution said.

The resolution said demonetisation was necessary for decimating the parallel economy of black money and for the smooth functioning of the GST in near future.

“There is today more money with the banks to lend. Interest rates have moved downwards,” it said.

With BJP leaders endorsing the exercise whole-heartedly, the party’s ‘Kisan Morcha’ chief Virendra Singh Mast claimed at the meeting that it also resulted in lack of wasteful expenditure by farmers, a community which, opposition parties claimed, has suffered most due to cash crunch.

Briefing reporters on the resolution and Mr. Jaitley’s speech in the closed-door meeting, Union Minister Nirmala Sitharaman said the “bold and historic decision” underlined a firm and visionary leadership which puts the country above party and individuals.

“The Rs 500 and Rs 1000 notes hidden in mattresses, something people would say symbolically, is now in bank accounts. It will help development,” she said.

Mr. 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 and took a dig by adding that states can raise revenue by running efficient governments.

Citing various surveys, BJP claimed 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,” it said.

Rebutting criticism that demonetisation was abrupt, not a well though-out call, the resolution said it was taken with full-fledged preparations.

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.

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.

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.

“The BJP firmly believes that digital economy will stop the leakage of taxes. This Government has ended any role of middlemen from its beneficiary schemes like MNREGA, financial assistance to poor students, subsidies to marginal sections including SC/ST/OBC through digital transactions and Direct Benefit Transfers,” the resolution said.

Referring to Mr. Modi’s sops for the rural poor, women and senior citizens, it said Prime Minister ensured honour to the honest people on November 8 with demonetisation announcement and on December 31 he provided a new energy and faith to the youth, women, small businessmen, senior citizen and farmer of this country.

“Prime Minister’s appeal to all political parties about election expenditures is a revolutionary step as the political parties’ freedom from black money and corruption is essential for the making of the India of our future,” BJP said.

Asking party workers to push digital economy, it said the government’s measures are in like with “integral humanism”, a core philosophy of BJP’s ideologue Deen Dayal Upadhyay.

“These decisions are paving the way towards making of a modern India where modern technique, transparent governance and equitable society will be fulfilling the aim of ‘sabka saath sabka vikas’,” the resolution said.