Finance Minister Arun Jaitley said on Thursday said that post the government’s November 8 demonetization announcement, a lot more money has come into the banking system with an ability of the banks to lend higher.
“The revenue figures that have been updated are significant. The direct tax figures of the Income Tax are now available with an increase of 14.4% with a net increase of 13.6% till December 19, 2016,”said Arun Jaitley.
“The indirect tax figures till November 30th are updated with an increase in the central indirect taxes of 26.2 %,” said the minister while thanking the people of India who supported the demonetization move. “Life insurance, international tourism, petroleum consumption, flow into mutual funds has increased by 11 %,” said the minister. He further added that with the critical part of remonetization already behind us, and there being no impact on the above areas, the situation in the coming weeks is surely going to get bigger and better.
“Large benefits of the demonetization move are visible, what is in banks is identifiable impact on tax collection already visible,” added Jaitley. Adding to this he said that RBI has large amount of currency available, out of which major part of currency has been replaced.
“The critics have been proved wrong. There could have been adverse impact of demonetization on GDP for quarter or so, but it is not as bad as predicted,” Jaitley said on the impact of demonetization on the GDP.