India Today Conclave Next 2017: Every structural reform will have consequences, says Jaitley on demonetisation

 BT Online   New Delhi     Last Updated: November 7, 2017  | 13:11 IST
India Today Conclave Next 2017 LIVE: Every structural reform will have consequences, says Jaitley on note ban

Ahead of demonetisation's first anniversary, Finance Minister Arun Jaitley today talked about the jump in bank deposits, shell companies and how technology have enabled the people and governments to track the information. Finance Minister Arun Jaitley was speaking at India Today Conclave Next 2017 today.

Here's what the Finance Minister had to say:

Arun Jaitley on Demonetisation

If you link demonetisation to all govt steps, we have succeeded in how finance system in India ought to be carried out. Earlier, it was not possible to buy property without some cash. Way of life is not to pay taxes. So do we want to allow this happen. It (demonetisation) will surely help in tax collection. The number of tax filling people going up: FM Jaitley

Earlier it was only credit, debit or BHIM apps, but we nudged a process for greater tax compliance. Now more money is coming into the stock market and insurance firms. Now stone pelters, who used to come in thousands, are no more active. Contrary to what critiques say, that's the success of demonetisation: FM Jaitley

Demonetisation effect on informal sector
Any form of disruption like this can have an immediate effect. Demonetisation was effective only for weeks. So, impact was so huge, unrest to a longer period would have been evident but the process was so strong that during that time agricultural growth actually went up: Arun Jaitley

Arun Jaitley on supply of black money after demonetisation
No one is in a position to talk about a society where there's no cash at all. That's where the technology is an enabler and the government's interface with citizens minimises. In the allocation for natural resources, rather than go to ministers, you had to go to address the software on laptop as to which bid you are going to make. So if you are going to use all these tools, I think the government can become far more efficient.

Black money detection after note ban
This will be a continuous process. Amongst the individuals who have made deposits, the CBDT has been able to identify 1.8 million people. A large number of shell firms have been used as conduits. It's more about the process than the number, as the numbers will keep on varying. Today people are more concerned about the cleaner use of money, which is more important and that's the government's achievement: Arun Jaitley

Tech has distinguished who are the people who have wealth disproportionate wealth as compared to their returns. It is now easy to track shell firms for media too: Arun Jaitley

If we are able to use technology for land records, building permits, the impact it will have on reducing corruption: Arun Jaitley 

 

I have analysed the World Bank's Doing Business report and found that large jump was in areas where we have been able to use technology. The largest jump was in taxation indicator. Technology enabled in very silent manner to bring about disconnect between assessor and assessee: Arun Jaitley