We have heard a lot of arguments for and against the demonetisation move of the government. Many support, many oppose and many are confused. Some have been inconvenienced more than others. As a ordinary citizen of the country, my thoughts on this subject is as follows:
I believe every Indian citizen who is paying tax due to intent or compulsion ( many end up paying tax because it is TDS from salary) . Why I said compulsion is because every salaried employee knows that only 3 crore Indians pay income tax out of a population of 125 crores. If I take one is to 5 ratio of tax payer to dependents, still we need to have 25 crore people paying tax. But, only 3 crore Indians file tax returns and 60-70 % of that is NIL tax. There is anger in tax payers mind that while I am being forced to pay tax, most of the business men evade tax or pay significantly lower tax by window dressing books of accounts.
I believe that this population and the poor who don't have any use of high denomination of notes are happy with the action taken. This gives a feeling of revenge taken. Now, whether this action of demonetisation of currency will bring result is a question in every ones mind including mine.
There are arguments on both sides, I am on the side which believes that it will benefit us. But, people want instant gratification, which is a problem. One can't deliver a baby in one week. It normally takes 9 months and have to go through enormous pain. India was under foreign rule for more than 700 years if you include Mughals. During this period also, whenever some king or individual wanted to fight like Rana Pratap Singh of Mewar against Akbar , Kattaboman or Balganghadar Tilak, Gandhi against British. They were a lot of nay sayers... either one has to act or support people, who act.
We need to have patience to see the results. What are the measures that will reflect that the action taken has had positive impact? 1. Fiscal Deficit has to go down 2. Banks will be having more cash in hand resulting in lower rates on deposits and loans 3. Real Estate prices should come down from current levels 4. Inflation should moderate 5. Counterfeiting if currency should reduce 6. Money available for terrorist and miscreants should drain. All this will take any where from 6 months to 24 months to show results.
I have the patience to wait and see. I respect all those who have made significant change. PV Narasimha Rao, who brought country back from bankruptcy to liberalisation... he did not speak much.
Vajpayee, non corrupt government, Golden Quadrilateral... Indira Gandhi who invested in missiles and space technology when everyone questioned the need for rockets when India was a poor nation. We have reached Mars now... she made sure that the adversary is shown it's place in 1971.
Now, Modi...he acts that is what I like the most. This country is full of thinkers and opinion holders and very few doers. He does and hence I welcome his actions. I believe that certain section of the society is very unfair to Modi. A student who was scoring 40 out of hundred is trying to improve the score and started taking action which will result in 60-70 but the nay sayers keep complaining that you promised to score 100 and hence you have failed. We need to appreciate the effort taken to improve the situation.
Corruption is present since time immemorial, otherwise India would not have been ruled by foreigners for a long time. If we believe that this can be solved in 1-2 year then we are fooling ourselves.
Bottom line is that I will not spend time in debates on the subject of whether this current action will yield results. I will wait for 12-18 months to conclude whether it was useful or not.
I believe every Indian citizen who is paying tax due to intent or compulsion ( many end up paying tax because it is TDS from salary) . Why I said compulsion is because every salaried employee knows that only 3 crore Indians pay income tax out of a population of 125 crores. If I take one is to 5 ratio of tax payer to dependents, still we need to have 25 crore people paying tax. But, only 3 crore Indians file tax returns and 60-70 % of that is NIL tax. There is anger in tax payers mind that while I am being forced to pay tax, most of the business men evade tax or pay significantly lower tax by window dressing books of accounts.
I believe that this population and the poor who don't have any use of high denomination of notes are happy with the action taken. This gives a feeling of revenge taken. Now, whether this action of demonetisation of currency will bring result is a question in every ones mind including mine.
There are arguments on both sides, I am on the side which believes that it will benefit us. But, people want instant gratification, which is a problem. One can't deliver a baby in one week. It normally takes 9 months and have to go through enormous pain. India was under foreign rule for more than 700 years if you include Mughals. During this period also, whenever some king or individual wanted to fight like Rana Pratap Singh of Mewar against Akbar , Kattaboman or Balganghadar Tilak, Gandhi against British. They were a lot of nay sayers... either one has to act or support people, who act.
We need to have patience to see the results. What are the measures that will reflect that the action taken has had positive impact? 1. Fiscal Deficit has to go down 2. Banks will be having more cash in hand resulting in lower rates on deposits and loans 3. Real Estate prices should come down from current levels 4. Inflation should moderate 5. Counterfeiting if currency should reduce 6. Money available for terrorist and miscreants should drain. All this will take any where from 6 months to 24 months to show results.
I have the patience to wait and see. I respect all those who have made significant change. PV Narasimha Rao, who brought country back from bankruptcy to liberalisation... he did not speak much.
Vajpayee, non corrupt government, Golden Quadrilateral... Indira Gandhi who invested in missiles and space technology when everyone questioned the need for rockets when India was a poor nation. We have reached Mars now... she made sure that the adversary is shown it's place in 1971.
Now, Modi...he acts that is what I like the most. This country is full of thinkers and opinion holders and very few doers. He does and hence I welcome his actions. I believe that certain section of the society is very unfair to Modi. A student who was scoring 40 out of hundred is trying to improve the score and started taking action which will result in 60-70 but the nay sayers keep complaining that you promised to score 100 and hence you have failed. We need to appreciate the effort taken to improve the situation.
Corruption is present since time immemorial, otherwise India would not have been ruled by foreigners for a long time. If we believe that this can be solved in 1-2 year then we are fooling ourselves.
Bottom line is that I will not spend time in debates on the subject of whether this current action will yield results. I will wait for 12-18 months to conclude whether it was useful or not.
