NITI Ayog vice-chairman Aravind Panagariya has called Prime Minister Narendra Modi's demonetisation scheme as a “frontal attack” on black money and said that this is not last step to curb corruption as more actions are in store.
Panagariya said 'if you are asking that demonetisation is the last step to curb corruption, then I will say no. I think more actions will be taken, but in terms of taking action against the existing black money and also in changing the roles, and the policy regime in such a way that future accumulation of black money is also discouraged, so we need to do both'. He added that the discussions are under way on the budget, and hopefully they will see some action in the upcoming budget. He also stated that the Union Finance minister had already committed to streamline the corporate income tax and hopefully some progress would be made. Therefore, he said that simplification of some taxes, reduction in the tax rate and these should also discourage the accumulation of black money.
On the negative impact of demonetisation on the people, he said that people have been with the Prime Minister despite hardships and they are also observing that he is doing it ultimately for the benefit of the country. He also said that in fact the government has done a frontal assault on black money and people are generally supporting it. He expects demonetisation to bring significant tax gains going ahead, and help the economy bounce back strongly in the years ahead.