Buoyed by the recent poll victories, the government on Monday asserted that demonetisation had got a huge public support as it has dealt a heavy blow to the shadow economy which was to the tune of 33.7 per cent.
Demonetisation will help boost GDP and the higher growth will lead to social and income equity in the country, Minister of State for Finance Arjun Ram Meghwal said in the Lok Sabha.
He was replying to a debate as the House passed the Supplementary Demand for Grants for 2016-17 and Demand for Grants for 2017-18 of various ministries as required to complete the budgetary exercise.
Meghwal, in his speech, rejected the opposition criticism of the government’s performance and said the slew of initiatives taken by the Modi government had pushed growth and was ensuring welfare of all sections of the society.
Listing the schemes and programmes launched since 2014, he said, “Are these mere slogans? These are not mere slogans. This is actual work done.”
He said all the schemes like ‘Digital India’, ‘Make-in-India’ and ‘Start-Up India’ are going to benefit people and perk up growth.
Pointing to demonetisation, the minister said the decision had won a huge support from the people and this was reflected in the election results in five states earlier this month.
“Despite all hardships faced by the people during demonetisation, the country stood by the Prime Minister on the decision,” Meghwal said.
Emphasising that demonetisation will reduce the rich-poor divide, he said it has dealt a heavy blow to the shadow economy which was 33.7 per cent of Indian economy as per the World Bank report.
The positive impact is going to be higher GDP growth as consumption, investment and exports, which are three components of the economy, will get a boost, he said.
The minister insisted that demonetisation has helped curb corruption and black money besides checking fake currency and squeezing funding to terrorists.