As far as the negative impact of demonetisation is concerned, Jaitley said, “When you switch over, it creates disruption. I don’t see disruption lasting too long. You may see the impact for a quarter or so. Then when you look at next 12-15 quarters, it’s certainly going to benefit.”
Citing a few economic trends post demonetisation, the Minister said rabi sowing this season has been higher than last year, while auto sales were a mixed bag.
“Of course, you will have some disruption created because of the switchover, in the long run, advantages are going to be huge as far as the relative cost of disruption is concerned,” Jaitley said.
Speaking about the various advantages of the demonetisation, the Finance Minister said, it could lead to reduction in interest rates.
“Rates will now hopefully at some stage come down. With more money in the taxation system, our base itself increases,” he said.
As far as inflow from demonetisation is concerned, he said it would come from many sources including higher tax penalty to be levied on unaccounted money.
Sourced from agencies, Featured image courtesy: outleadership.com
