Demonetisation, which has been hailed as a historic step by the Modi government, finds no mention in Chief Economic Advisor Arvind Subramanian’s list of major reforms of 2016.
Although the government claims the move will deal a heavy blow to black money, it didn’t figure in a tweet spelling out last year’s key achievements sent out by Subramanian.
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The Economic Survey, released on Tuesday, mentions that demonetisation will have short-term loss but ensure long-term benefit.
The costs include a contraction in cash money supply and subsequent, albeit temporary, slowdown in GDP growth; and benefits include increased digitalisation, greater tax compliance and a reduction in real estate prices, which could increase long-run tax revenue collections and GDP growth.
But the glaring omission of the notebandi “masterstroke” in the CEA’s tweet didn’t go unnoticed by tweeples.
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