Tresa & Jayasimha
BENGALURU: “Demonetisation is a game changer for the Indian Economy with far reaching benefits even though it is causing short-term inconvenience for the common man,” said Prof Venkanna speaking at a seminar on demonetisation at BJP Head office, Malleswaram.
Tejaswi Surya, leader of the BJP Yuva Morcha was present during the talk with other BJP officials and public. During the seminar, praising the move, Prof. Venkanna said that demonetisation would break the nexus between corruption, black money, financial terrorism and the use of such stocked money for subversive activities. He said that there is a need to make India partially a cashless economy as most of the developed countries do not have more than 4 % of their GDP in cash but India has in circulation more than 12% of its GDP.
“But this sudden move has caused inconvenience for the public and has damaged the reputation of BJP and has also damaged the popularity of the government for now, but it will surely boost the image of the BJP in long term,” he opined answering a question.
He said that the cashless economy leads to accountability and transparency of any transactions, which will eventually lead to the automatic stoppage of tax evasion which in turn yields higher revenue to the government. The government then may reduce the tax rate. He also said that the sudden withdrawal to circulating notes of high value can spark distrust among the common people in the government.
“Demonetisation was unavoidable in the larger interest of the nation to strengthen its economic security. Replacing more than 75% of the currency without any social unrest in a few weeks shows the efficiency of the government and the RBI. This move serves multiple purposes, it works against the illegal wealth and illegal income and helps in circulation i.e flow currency as against the stocking of currency,” he said.
He concluded that only time will tell about the effects of Demonetisation, whether it will turn out to be a boon or bane for the Indian economy.