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Monday, November 14, 2016

Government Vs Public Interest

By on Monday, November 14, 2016
Kshitiz Kant; Editor
The union government banned note currencies of Rs 500 and Rs1000. The Finance Minister told that the ATMs will dispense cash normally after 21 days.

The government can control by cancellation the currencies, but it has the responsibility to manage its redistribution. The Janta Party Government had banned the currency of Rs1000 to clean the black money from the Indian Economy in 1978.
Public Crises
 The Modi government has hurriedly declared to ban on the big notes; but the needful co-operation by the public has its limit. The hands-to-mouth men of the labourers have been affected for their daily wages because those who give them daily work have lost their paying capacity.
The decision badly affected to those who are the pension holders and are in queue at banks to withdraw the currencies to fulfill their daily need.
The persons are in crises to buy the medicine to save their dearest; those who had promised to wed their daughters; and the scheduled date fall during the ban period are also facing the difficulties.
The crowd surged, whether it are at banks or at ATMs, because the money is the need to live in society; exactly like blood needed to a human body to survive.
Why the steps demonetization
 The union government was failing to implement its economic policies; so the demonetization is the consequence of non-compliance of economic rules and restrictions by the system.
The black money amounting was Rs 8000 crores during year 2001; and the amount may recently increased beyond the expectation.
Whenever the centre tries to control the credit in some areas; the economy of black money, having made available itself the credit services, foils the policy of government.
What happened
Now we should not search the black money somewhere else; we should inquire the 5 star hotels where the vacations are enjoyed; costly restaurants where the money are spent with free hands; the race course where the money are spent in horse race; the luxurious decorations in buildings.
The black money is in Indian economy persistently gnawing it like termites.
The commodities become short in economy. The control over the rates and distribution is an important step to remove the flaws of shortage of these goods. The control is misused and born the trafficking, the profiteering, and the tax evasion — this creates black money.
The political atmosphere in the country generates the black money. The elections are the expensive nowadays, and the rich who possess the black money provide these currencies as contribution to the parties. By this way, the black money are a spending like outlet.
The commission, the bribe, and the guarantees -- all are paid by black money. The inflation and the black money both have the positive co relation. The correct distribution of monetary income under inflation is not possible which generate the black money. The price rises because of black money. the steps, unearth of black money from India, are as follows: the currencies of big notes should be banned; and issued new notes; the high rates should be slashed; the control and license should be done minimum; the contribution to the political parties should be regularized. the agricultural income to be taxed; the production tax to be imposed.  

The inflation is poison to the economy; if having thought it an infant we left it, after some time the baby creep and then begins to run on foot. The treatment to eliminate it is to withdraw the big currency notes and supply new circulation for the public purpose.
PM Modi said during the inauguration of Greenfield airport at Panaji, “Only 50 days are required; the honest persons are supporting my steps; if any mistake emerges after 30th December, I am the accused.”
writer is the student of
M.Sc(statistics) in DSMNRU
Lucknow e-mail: buntline123@gmail.com

1 comments:

  1. This is true if we say that by old currency 500 and 1000 rupess fully banned in india, stop and store black money come in circulation in a definite time. But I not satisfy with the launching 2000 rupess. 2000 rupess is the big currency of india and with the help if this currency most of, over restore his money compare to past.

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