‘Demonetisation will destabilise economy’

November 26, 2016 11:19 pm | Updated 11:32 pm IST - NEW DELHI:

 Amit Mitra

Amit Mitra

Demonetisation of currency notes will completely destabilise the economy as it comes on close heels of the goods and services tax (GST) implementation, West Bengal finance minister Amit Mitra said here.

“Demonetisation will be a double whammy for the poor,” Mr. Mitra said. “It will completely destabilise and disrupt the entire process of economic activity and the GDP (Gross Domestic Product) will collapse. With GST, there is a destabilisation already underway.

That is why the states are being compensated for five years for losses arising out of the transition under the GST.”

Mr. Mitra said while the circulation of counterfeit currency notes in the economy was estimated to be about Rs.400 crore in 2014 “according to government’s own intelligence unit,” the demonetisation exercise will cost Rs.14.5 lakh crore to the economy.

“Is this move for combating black money or is there a hidden agenda?” the West Bengal finance minister asked.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.