On the first anniversary of demonetisation, economist Prabhat Patnaik speaks about why its stated objectives were not achieved, the role of GST and more.
Given his government’s record of inaction, however, the latest disclosures are also likely to sink without a trace.
We must have an exhaustive investigation of every minute aspect of this whole disastrous experience. This includes a government-led comprehensive one, resulting in a white paper or report tabled in Parliament.
One year later, the stated objectives of Modi’s shuddhi yagna stand unmet, while India’s poor and most vulnerable continue to bleed. “Demonetisation is not the end but the beginning of a ‘long, deep and constant’ battle against black money and corruption and will benefit the poor and the common […]
Swadeshi Jagran Manch convener Ashwani Mahajan and Jawaharlal Nehru University professor Himanshu join Maya Mirchandani to discuss the mixed balance-sheet.
Demonetisation has resulted in, at best, marginal improvements in India’s tax compliance and digitisation. But at what cost?
A study in December 2016 reported 40% and 32% job losses in the age groups of 40-55 and 22-30 years respectively during the first 50 days of demonetisation.
While digital transactions have started ebbing, with cash remaining king in the real estate sector, what has been hit are new investment proposals and the informal economy in general.
What matters now is the meta narrative about how India debates, makes and implements policies. If too many people in politics feel that this kind of decision won the Uttar Pradesh election, then we may have more of such actions
Demonetisation crippled an economy that ran on cash; it destroyed the livelihoods of millions of farmers, workers, traders, women and the elderly; and it violated the dignity and liberty of law-abiding citizens.
While there is no direct evidence of wrong-doing or illegality, the leaks provide an interesting window into the manner in which money is moved, manipulated and hidden behind complex corporate structures around the world.
The government’s attempts to reduce the CIC-GDP ratio by merely reducing currency in circulation without the necessary structural reforms are likely to have deleterious consequences.
Whistleblower Herve Falciani, a former HSBC Bank employee, had said in 2015 that the Indian authorities weren’t using all the information he provided on people stashing black money abroad.
Despite the well-documented adverse effects of demonetisation, Modi government’s continued support for it reflects the arrogance of the behavioural ideology that thrives in its sense of certainty, far removed from the struggles of everyday people.
The companies are among the over two lakh struck off from the Register of Companies by the government last month.
While the group has informed Australian authorities that Atulya Resources is the holding firm for the company’s operations, ABC alleges that it is actually a holding firm in the British Virgin Islands controlled by Vinod Adani.
In an interview to The Wire, the BJP leader defends his criticism of Arun Jaitley’s handling of the economy and explains why the government’s policies from Kashmir to Pakistan are wrong.
It’s not easy to defend a failing flagship policy, especially when the central premise is shaky. When the foundation is built on wishful thinking, the supporting ‘evidence’ is bound to stray into fiction too.
The process is “going on in full swing” with most RBI offices working in double shifts and with the help of high-end verification machines, the central bank said.
Demonetisation as a means of tackling the black economy was destined to fail. What’s worse is that its ripple effects are having severe adverse effects on India’s economy.
The price of demonetisation’s “success” is now clear – slowing economic growth. What makes matters worse is that India has made very little headway in solving its twin balance sheet problem.
Nine months after Prime Minister Narendra Modi announced the demonetisation Rs 500 and Rs 1000 notes, it is clear that his government has not had one single, consistent reason for conducting the notebandi exercise.
The adjudicating authority of the Directorate of Revenue Intelligence has struck down all proceedings against the Adani Group.
The Swiss People’s Party has said that India and ten other countries are “too corrupt” and that it will get enough support in the country’s parliament to halt the tax information exchange process.
The announcement by the Securities Exchange Board of India (SEBI) late on Monday did not say what illegal activities the companies may have been engaged in.
If Switzerland’s Federal Supreme Court rules in his favour in a case brought against him by Swiss prosecutors, Rudolf Elmer will release account data from Julius Baer bank that he still holds.
PricewaterhouseCoopers, convicted in the Rs 7,000 crore Satyam scam, had also audited accounts of Vijay Mallya’s firm and the Global Trust Bank, which collapsed.
While C. Rammanohar Reddy’s Demonetisation and Black Money tries to present a moderate view of demonetisation and its impact, what is missing is the way the impact is estimated and why official data may be lacking.
Financial secrecy deprives countries, especially developing ones, of key revenue resources by eroding their tax base. India must thus build a robust legal system to lift the veil of secrecy on both onshore and offshore financing.
Demonetisation has not dented the black economy, but it has damaged the white economy, especially the unorganised sectors.
In Understanding the Black Economy and Black Money in India, Arun Kumar takes us on a journey from the origins of the black economy in India to what should come after demonetisation.
By taxing the incomes of the top 4.1% of total agricultural households, as much as Rs. 25,000 crore could be collected as agriculture income tax.
C. Rammanohar Reddy speaks to The Wire about his recent book Demonetisation and Black Money, the impact of the policy on the masses and the government’s shifting narrative towards digitalisation.
With the end of the crisis in sight, the gains and losses from demonetisation can be assessed with some confidence.
Extracts from C. Rammanohar Reddy’s Demonetisation and Black Money that explore whether the note ban had any impact on the rich, how Digital India entered the narrative and the impact of the move on the poor.
Black money may be funnelled away in tax havens, but it is all controlled out of London, where Indian and other billionaires are happy to be based.
Despite the hardships, why do many people continue to back what most economists and analysts have termed a bad policy?
The rationales behind the surprise move – targeting black money, terror financing and building a cashless economy – have all failed to elicit results. Why then was this exercise undertaken at all?
If the government is serious about addressing the black economy, fundamental changes in the structure and organisation of the economy and politics are required.
For the government to truly fight black money and ensure complete transparency in political funding, the ambit of the Right to Information Act must be expanded to include political parties.