Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Drop in Economic Activity Due to Demonetisation Transient: Arun Jaitley

Finance Minister Arun Jaitley on Wednesday said that the drop in economic activity due to demonetisation was only transient and its effect would not spill over to the next financial year.

IANS

Updated:February 1, 2017, 12:23 PM IST
facebookTwitterskypewhatsapp
Drop in Economic Activity Due to Demonetisation Transient: Arun Jaitley
Finance Minister Arun Jaitley arrives at the parliament to present the federal budget. Photo: Reuters

New Delhi: Finance Minister Arun Jaitley on Wednesday said that the drop in economic activity due to demonetisation was only transient and its effect would not spill over to the next financial year.

"Demonetisation has a strong potential to generate long-term benefits in terms of increased flow of financial savings and greater formalisation of economy," Jaitley said here while presenting the Union Budget 2017-18 in the Lok Sabha.

"The effects of demonetisation are not expected to spill over to the next year. We firmly believe that demonetisation and Goods and Services Tax (GST) will have an epic impact on the lives of people," he added.

The Economic Survey, released on Tuesday, took into account the possible fallout of demonetisation of high value currency, and sharply cut the GDP growth for 2016-17 to 6.5 per cent, from 7.6 per cent last financial year.

The growth is likely to return to trend in 2017-18, following a temporary decline in 2016-17, said the Survey, while predicting the GDP to expand by 6.75-7.5 per cent in the next fiscal.

Demonetisation was a bold and decisive strike in a series of measures to arrive at a new normal of bigger, cleaner and real GDP, Jaitley said.

The measure helps transfer resources from tax evaders to the government and there is early evidence of it in the increased capacity of banks to lend, Jaitley said.

"Suplus liquidity will also lower the borrowing cost," the Finance Minister said.

"We are moving from informal to formal economy and the government is now seen as a trusted custodian of public money," he added.

The Finance Minister said that tax evasion had become a way of life and had bred a parallel economy, which demonetisation aimed to change.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Ashish Yechury
Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Bandhan Bank 623.70 9.67
HUL 2,064.40 2.49
Infosys 768.30 -2.26
RBL Bank 264.05 1.99
Maruti Suzuki 6,985.75 2.41
Company Price Change %Gain
Bajaj Consumer 195.55 -14.77
Future Life 413.10 2.71
Bandhan Bank 625.05 10.14
Federal Bank 84.50 1.50
Indiabulls Hsg 189.05 -4.47
Top Gainers
Company Price Change %Gain
Eicher Motors 19,199.10 4.75
Vedanta 153.50 3.86
Zee Entertain 250.70 3.21
M&M 583.40 2.59
Hero Motocorp 2,675.70 2.55
Company Price Change %Gain
Vedanta 153.45 3.79
M&M 584.60 2.83
ONGC 138.75 2.63
Hero Motocorp 2,676.00 2.56
Maruti Suzuki 6,987.70 2.47
Top Losers
Company Price Change %Gain
Bharti Airtel 383.65 -2.52
Infosys 768.30 -2.26
Bharti Infratel 256.95 -0.96
JSW Steel 219.65 -0.81
Tata Motors 126.95 -0.70
Company Price Change %Gain
Bharti Airtel 383.55 -2.53
Infosys 767.80 -2.27
Tata Motors 126.95 -0.67
HCL Tech 1,084.10 -0.27
Bajaj Finance 3,880.30 -0.03

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results