Demonetisation a failed experiment, Modi should apologise: Harish Rao

Harish Rao listing out adverse impact of demonetisation before media at the BRS Legislative Party office, said demonetisation did not meet even one of its three core objectives

Hyderabad: Terming the demonetisation as a flop show that adversely affected Indian economy and the people, Finance Minister T Harish Rao demanded that Prime Minister Narendra Modi tender an unconditional apology and release a white paper on the entire exercise and its impact. He said the Centre’s failed experiment of demonetisation had resulted in a staggering burden of Rs 5 lakh crore on the country’s exchequer.

Harish Rao, who listed out the adverse impact of the demonetisation before the media at the BRS Legislative Party office here on Tuesday, said demonetisation did not meet even one of its three core objectives – contain fake currency notes, limit the usage of high denomination banknotes for storage of unaccounted wealth and also disrupt financing to subversive activities like drug trafficking and terrorism.

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“The BJP preaches something and practises something else. Every time it does something, it always ends up as a flop show due to its inefficiency in implementing it. Demonetisation, GST and several other reforms which they claimed to improve the economy, have instead ruined it,” he said. He ridiculed the claims of the BJP over demonetisation and said all the claims were proved wrong.

On Monday, referring to union Finance Minister Nirmala Sitharaman acknowledging in the Lok Sabha that the objectives of demonetisation were not met, Harish Rao said as per the RBI report, the circulation of counterfeit currency in the market had increased by 54 per cent after demonetisation. Similarly, the cash to GDP ratio had increased from 11.6 percent in 2014 to 13.7 per cent in 2022.

He pointed out that the data furnished by the Central Board of Direct Taxes (CBDT) revealed that black money had increased in an unprecedented manner where the authorities seized over Rs 40,000 crore in 592 cases after currency of higher denomination of Rs 2,000 came to the market. “The list does not end here. Over 100 people died while waiting in the queue lines to exchange old notes and many unknown people suffered hunger deaths as over 62 lakh people lost employment, due to demonetisation,” he added.

The Finance Minister said the Prime Minister sought 50 days time to improve situation across the country and urged people to cooperate, but after more than 2,000 days, things are going nowhere. “On behalf of the BRS, we supported the Centre’s move as we too believed in their promises which turned out to be mere statements. Due to utter negligence and lack of planning in implemention of the demonetisation, the country’s economy bore severe brunt,” he said.

The Centre spent nearly Rs 21,000 crore for printing of new currency notes of different denominations which could have been utilised for completing a major irrigation project, Harish Rao pointed out. He said with adverse effect on the economy, the union and also the State governments are being forced to obtain loans. The Modi government has obtained fresh loans of Rs 1.07 crore crores in the last nine years i.e. around Rs 4,618 crore everyday.