The economy will recover in the next six months as the issues arising out of demonetisation and the Goods and Services Tax (GST) are easing out, Road Transport and Highways Minister Nitin Gadkari said on Wednesday.
“I feel that we should wait for six months. Both measures [demonetisation and the GST] will yield results. The situation will improve. When you buy a brand new car, you face some problems in adjusting to it,” he said, reacting to the criticism by former Union Ministers.
Mr. Gadkari said in an interview that demonetisation and the GST were the “biggest reform measures.”
ADVERTISEMENT
“We are sorting out the problems faced by industry due to GST. The problems are subsiding. It’s too early to judge these measures,” he said.
Former Union Minister Arun Shourie called the demonetisation effected last year the world’s “largest money-laundering scheme” in an interview to NDTV. “I don’t agree with his views. All the money deposited in bank accounts will have to be accounted for. Black money in the economy will be reduced substantially,” Mr. Gadkari said.
Recently, former Union Finance Minister Yashwant Sinha wrote an article criticising the government for making a “mess” of the economy. Last month, former Prime Minister Manmohan Singh told CNBC-TV18 in an interview that “hasty” implementation of the GST and demonetisation were bound to hit the GDP.
ADVERTISEMENT
Pending projects
During the interaction, Mr. Gadkari said he would ask Ministry officials to clear all pending proposals for highway and shipping projects from the State governments so as to boost the economy. “The Finance Ministry has told all Departments to increase expenditure. To begin with, I will ensure that all pending projects and proposals of the State governments are cleared,” he said.