Scars and wounds of demonetisation are getting more visible with time: Manmohan Singh

Scars and wounds of demonetisation are getting more visible with time: Manmohan Singh
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Manmohan Singh who is the Former prime minister shared his harsh opinion of demonetisation as a strong political fight between the government and the opposition marked the second anniversary of the cash ban.

The former prime minister said, “It is often said that time is a great healer. But unfortunately, in the case of demonetisation, the scars and wounds of demonetisation are only getting more visible with time.”

“I urge the government to restore certainty and visibility in economic policies. Today is a day to remember how economic misadventures can roil the nation for a long time and understand that economic policymaking should be handled with thought and care.”

He called Prime Minister Narendra Modi’s overnight ban on Rs. 500 and 1,000 notes on November 8, 2016, an “ill-fated and ill-thought exercise”, He further stated that “the destruction it unleashed on the Indian economy and society is now evident to everyone.” The cash ban, he said, impacted every single person.

Mr Singh said, “prudent to not resort to further unorthodox, short-term economic measures” that could cause any more uncertainty in the economy and financial markets.

Finance Minister Arun Jaitley called the notes to ban a key step in a chain of important decisions taken by the government to formalize the economy. The cash ban had also made it difficult to avoid taxes, pushed digital transactions and helped improve tax collection, he said.