Union Budget 2017: 7 things Finance minister Arun Jaitley said on demonetisation

1. Demonetisation was a bold and decisive strike in a series of measures to arrive at a new normal of bigger, cleaner and real GDP.

2. Demonetisation and GST will have an epoch making impact.

3. For many decades tax evasion was way of life for many. Post demonetisation, India is moving towards a formal economy. The government is now seen as a trusted custodian of public money.

4. There has been higher GDP growth and tax collection due to demonetisation.

5. Pace of

remonetisation

has picked up and will soon reach comfortable levels. The impact of demonetisation will not spill over into the next year.

6. Drop in economic activity, if any, during remonetisation period, is expected to have transient effect on economy.

7. Any adverse impacts of demonetisation on the informal sector would be offset by a surge in the

formal sector

, higher tax collection translating into higher government spending.












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