On Thursday, during a winter parliamentary session, Former Prime Minister and prominent economist Manmohan Singh finally speaks about the impact of Demonetisation.
Former PM started his speech by saying that he doesn’t disagree with the objectives of Demonetisation as to curb black money, prevent growth of counterfeit currency notes and also help to control terrorist finance activities. But he called the process of demonetisation as a “monumental mismanagement” that has been undertaken.
By quoting John Maynard Keynes , Manmohan Singh said, “Even those who say that this measure will do harm or cause distress in the short term but will be in the interest of the country in the long run should be reminded of what John Keynes said once, ‘In the long run all of us are dead’.”
He also talked about the problems faced by common people; he said we don’t know what will be the outcome of this decision taken by the government. As earlier, PM Modi appealed to public that they should wait for 50 days which will bring normalcy to the situation. In response to this, former PM said that 50 days are short but think about the poor and deprived sections of the society, even 50 days can be disastrous and detrimental. That is why about 60-65 people have lost their lives.
He further continued by saying that the way scheme has been implemented it will hurt small scale sector industries, people in informal sector of economy and GDP can decline by about 2 percentage points as a result of what has been done.
He urged PM Modi to come up with some constructive and practical ways while avoiding distress in the country.