Demonetisation Could Slash GDP By 2%, Says Manmohan Singh
The Rajya Sabha finally functioned for about an hour on Thursday, when the Prime Minister gave in to the Opposition's demand that he be present for a debate on demonetisation. The cheer was short-lived though, for his absence from the Upper House of Parliament, after the lunch break, led to the Opposition storming into the Well of the House, forcing the vice chairman of the Rajya Sabha to adjourn proceedings for the day.
But the principal opposition party, the Congress, fielded one of its senior most leaders to initiate the debate earlier in the day, Modi's predecessor Manmohan Singh described the cash curb as “organised loot and plunder" that could reduce India's GDP by 200 basis points. Describing the implementation as a “monumental management failure”, the former prime minister questioned the government's move to set withdrawal limits on a weekly basis.
These measures convince me that the way this scheme has been implemented, it's a monumental management failure, and in fact is a case of organised loot and plunder.Manmohan Singh, Former Prime Minister And Congress Party Member
Singh pointed out that the cash crunch in the economy following the sudden ban on Rs 500 and Rs 1,000 notes on November 8 is seriously hurting a large part of the economy.
Highlighting the plight of the informal sector, the former prime minister said, "90 percent of our people work in the informal sector, 55 percent of our workers who into agriculture are really in distress."
Even the cooperative banking system which serves a large number of people in rural areas is non functional and "have been prevented from handling cash", he claimed.
Singh, who is also a former RBI Governor, called out to Urjit Patel, saying the criticism received by the central bank was justified in his opinion.
Singh ended his speech urging Modi to find "practical and pragmatic" ways to relieve the people in distress.
I conclude that it is not my goal to pick holes in what one side does or another side does but I sincerely hope that the Prime Minister will view at this late hour, will help us to find practical pragmatic ways and means to provide relief to the suffering people of this country.Manmohan Singh, Former Prime Minister and Congress Party Member
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