DAVOS: The Modi Government “owed” demonetisation to the nation and it had to do it to eradicate black money menace and to bring hoarded cash back into the banking system, Union Minister Nirmala Sitharaman said today.
Speaking at a panel decision at WEF on India’s Time to Transform, she said it may sound ‘propagandist’ but one needs a strong and courageous leadership to take such a bold step.
On why Government felt it was necessary to do the demonetisation, Sitharaman said it was part of the “electoral promise we made to check the black money menace”.
“Right after coming to power, we started with setting up the special investigation team, came out with scheme for declaration of undisclosed money, tightened tax treaties with different countries to check round tripping of money. We took all these steps.
“This step of demonetisation was absolutely necessary…. 87 per cent of our economy was informal and only in cash-driven segments where money would not go to banks …Only about 50 lakh people pay tax and all others who file the returns do not file any tax,” she said.
“Can we survive if this kind of tax to GDP ratio continues …. We had to do it, we owed it to the country and we do not regret it,” Sitharaman said.
“Even if it sounds propagandist … You need a strong and courageous leadership to take such a bold step,” she said. (AGENCIES)
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