The Centre’s decision to demonetise 86% of the country’s currency has undone the gains of the near-normal monsoon and the Seventh Pay Commission awards, D. Narayana, Director of Gulati Institute of Finance and Taxation, has said.
Both the parameters were expected to improve the performance of the economy, he said, at a discussion on the impact of demonetisation on society and economy, organised by the Thiruvananthapuram YMCA Ashayavedi.
“As a consequence of demonetisation, the GDP growth could be falling below 2.54%. The economy was expected to grow over 7% this year. The declining investment rate in the economy was pushed down further and bank credit growth hit a historic low. The Fiscal Policy Strategy statement released along with Central Budget has admitted that Growth Recovery has not taken place. Budget 2017-18 was expected to give the necessary boost to investment,” he said.
N. Deviprasad, Rtd. General Manager, State Bank of Travancore, said ‘cashless economy’ was an impossibility. The country may, at best, move towards ‘less cash economy.’
Georgekutty S., Secretary, EduPress, and Thomas Mathew presented the findings of surveys conducted respectively by EduPress and the Survey Research Center of Kerala University, on the impact of demonetisation on society. K.V. Thomas, president of YMCA, presided over the function.
