Wednesday, November 1, 2017

GST, demonetisation having desired impact?

GST/Demonetisation/Swachha Bharat – Anticipated Influence
According to Finance Minister, Arun Jaitley, the initiatives of the Modi government such as Swachh Bharat, Goods and Services Tax – GST, together with the demonetisation seems to be having the anticipated influence wherein GST and demonetisation have been causing increasing tax amenability and pressing significant of cash in the economy. Jaitley in his key note speech through video conference to the Berkeley India Conference had stated that public support to the reforms has been undertaken by the governments of the day at the centre as well as the state levels. He commented that he expects India would be capable of retaining its growth rate and live up to the aspiration of its people since it must not be overlooked that they not only belong to a huge population to service but have a very young population to service. He had informed that if India has to accept a challenge for moving into a higher economic group country, in the next one or two decades, the need to grow was essential at a much faster pace. In response to a query, Jaitley had contested that the transformation initiatives such as Swachh Bharat, GST together with demonetisation has not been the cause of any alterations on the ground.
Short-Term/Long-Term Impact
The finance minister was questioned as to `would you say there are long term benefits and the country would have to wait for those? Or is there any way to mitigate the issue being faced by the country?’ He debated that a much more serious analysis would be portrayed that even in the matter of months would show a short term positive impact on most of these projects. Though demonetisation as well as GST have been showing the desired impacts with regards to tax compliances and pressing the significant of cash in the economy, Jaitley for the first time had stated that Swachha Bharat campaign had brought to the forefront the importance of sanitation as well as cleanliness. H informed that adequate progress has been done considering sanitation and cleanliness for the first time in Indian history which has become the centre stage agenda and is making headway. The campaign of GST and demonetisation is said to be having short term as well as long-term impact.
Shake the System
Jaitley has informed that the campaign has become way beyond the administrative program and is a mass movement. He further stated that before demonetisation, Indian normal was to live with a high cash economy and not paying taxes, `you purchase a property, transact partially in cash and in business you maintain two sets of accounts. He debates on how could a country aiming to be the fastest growing major economy in the world, that aspires to grow from a developing to a developed economy continue with the normal of this kind. His observation was that one needs to shake the system in order to decrease the quantum of cash in India and hence apparently make it a more tax complaint society. Jaitley had commented that there has been sharp reduction in insurgent as well as terror activities in states such as Jammu and Kashmir as well as Chhattisgarh, in the instant repercussion of demonetisation.