TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    PM Narendra Modi with Armed Forces Personnel after 'Operation Sindoor',

    How Modi’s ‘Delegation Strategy’ Turned into Foreign Policy and Domestic Political Win

    Salman Khurshid

    Salman Khurshid Hails Abrogation of Article 370, Calls it a Step Toward Prosperity and Unity

    Delhi High Court Issues Notice to Ajeet Bharti in ₹2.1 Crore Defamation Suit Filed by TFI Media

    Delhi High Court Issues Notice to Ajeet Bharti in ₹2.1 Crore Defamation Suit Filed by TFI Media

    PM Modi

    PM Modi Launches ₹48,520-Crore Development Projects in Bihar’s Karakat, Lays Foundation for Major Infrastructure Works

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Global economic outlook worsens but India seen as growth driver: WEF report

    Global economic outlook worsens but India seen as growth driver: WEF report

    Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping

    Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping

    Understanding the differences between BTC season and altcoin season

    Understanding the differences between BTC season and altcoin season

    Best ₹1 Crore Term Plans with Return of Premium: Benefits vs Cost

    Best ₹1 Crore Term Plans with Return of Premium: Benefits vs Cost

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    New Delhi: Indian Army Brahmos Missile System during a rehearsal for Republic Day Parade, in New Delhi on Friday, January 20, 2023. (Photo: Anupam Gautam/IANS)

    India’s Defence Manufacturing Set to Reach ₹8.8 Lakh Crore by 2047: CII-KPMG Report

    Top Naxal Leader Hidma Nabbed in Odisha in Coordinated Security Sweep

    Top Naxal Leader Hidma Nabbed in Odisha in Coordinated Security Sweep

    Mock Drills to Be Held Tomorrow in States Bordering Pakistan

    India’s Major Preparations After ‘Operation Sindoor’! Mock Drills to Be Held Tomorrow in States Bordering Pakistan

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Colombia Withdraws Statement Condoling Terrorists Killed in 'Operation Sindoor'

    Colombia Withdraws Statement Condoling Terrorists Killed in ‘Operation Sindoor’

    Elon Musk

    Elon Musk Steps Down from DOGE Role, Criticizes Trump’s ‘Big Beautiful Bill’

    Bangladesh Supreme Court Frees Jamaat Leader Azharul Islam Behind 1971 Bangladeshi Hindu Genocide

    Bangladesh Supreme Court Frees Jamaat Leader Azharul Islam Behind 1971 Bangladeshi Hindu Genocide

    Pakistan’s Nuclear Ambition: A Costly Shield Fueling Economic Woes

    Pakistan’s Nuclear Ambition: A Costly Shield Fueling Economic Woes

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Role of Consultants to Study in Ireland: How to Choose the Right One?

    Role of Consultants to Study in Ireland: How to Choose the Right One?

    The Complete Guide to Education Loan Interest Rates in 2025

    The Complete Guide to Education Loan Interest Rates in 2025

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Cricket – More Than Just a Bat and Ball

    Cricket – More Than Just a Bat and Ball

    Lazer247 India – Best Online Sports Betting and Casino Platform

    Lazer247 India – Best Online Sports Betting and Casino Platform

    Adjustable Folding Adirondack Chair With Cup Holder – Customizable Support For Ultimate Relaxation

    Adjustable Folding Adirondack Chair With Cup Holder – Customizable Support For Ultimate Relaxation

    1win कैसीनो गेम्स: जब दांव से पहले रिवाज़ बन जाते हैं आदत और खेल का हिस्सा

    1win कैसीनो गेम्स: जब दांव से पहले रिवाज़ बन जाते हैं आदत और खेल का हिस्सा

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    PM Narendra Modi with Armed Forces Personnel after 'Operation Sindoor',

    How Modi’s ‘Delegation Strategy’ Turned into Foreign Policy and Domestic Political Win

    Salman Khurshid

    Salman Khurshid Hails Abrogation of Article 370, Calls it a Step Toward Prosperity and Unity

    Delhi High Court Issues Notice to Ajeet Bharti in ₹2.1 Crore Defamation Suit Filed by TFI Media

    Delhi High Court Issues Notice to Ajeet Bharti in ₹2.1 Crore Defamation Suit Filed by TFI Media

    PM Modi

    PM Modi Launches ₹48,520-Crore Development Projects in Bihar’s Karakat, Lays Foundation for Major Infrastructure Works

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Global economic outlook worsens but India seen as growth driver: WEF report

    Global economic outlook worsens but India seen as growth driver: WEF report

    Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping

    Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping

    Understanding the differences between BTC season and altcoin season

    Understanding the differences between BTC season and altcoin season

    Best ₹1 Crore Term Plans with Return of Premium: Benefits vs Cost

    Best ₹1 Crore Term Plans with Return of Premium: Benefits vs Cost

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    New Delhi: Indian Army Brahmos Missile System during a rehearsal for Republic Day Parade, in New Delhi on Friday, January 20, 2023. (Photo: Anupam Gautam/IANS)

    India’s Defence Manufacturing Set to Reach ₹8.8 Lakh Crore by 2047: CII-KPMG Report

    Top Naxal Leader Hidma Nabbed in Odisha in Coordinated Security Sweep

    Top Naxal Leader Hidma Nabbed in Odisha in Coordinated Security Sweep

    Mock Drills to Be Held Tomorrow in States Bordering Pakistan

    India’s Major Preparations After ‘Operation Sindoor’! Mock Drills to Be Held Tomorrow in States Bordering Pakistan

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Colombia Withdraws Statement Condoling Terrorists Killed in 'Operation Sindoor'

    Colombia Withdraws Statement Condoling Terrorists Killed in ‘Operation Sindoor’

    Elon Musk

    Elon Musk Steps Down from DOGE Role, Criticizes Trump’s ‘Big Beautiful Bill’

    Bangladesh Supreme Court Frees Jamaat Leader Azharul Islam Behind 1971 Bangladeshi Hindu Genocide

    Bangladesh Supreme Court Frees Jamaat Leader Azharul Islam Behind 1971 Bangladeshi Hindu Genocide

    Pakistan’s Nuclear Ambition: A Costly Shield Fueling Economic Woes

    Pakistan’s Nuclear Ambition: A Costly Shield Fueling Economic Woes

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Role of Consultants to Study in Ireland: How to Choose the Right One?

    Role of Consultants to Study in Ireland: How to Choose the Right One?

    The Complete Guide to Education Loan Interest Rates in 2025

    The Complete Guide to Education Loan Interest Rates in 2025

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Cricket – More Than Just a Bat and Ball

    Cricket – More Than Just a Bat and Ball

    Lazer247 India – Best Online Sports Betting and Casino Platform

    Lazer247 India – Best Online Sports Betting and Casino Platform

    Adjustable Folding Adirondack Chair With Cup Holder – Customizable Support For Ultimate Relaxation

    Adjustable Folding Adirondack Chair With Cup Holder – Customizable Support For Ultimate Relaxation

    1win कैसीनो गेम्स: जब दांव से पहले रिवाज़ बन जाते हैं आदत और खेल का हिस्सा

    1win कैसीनो गेम्स: जब दांव से पहले रिवाज़ बन जाते हैं आदत और खेल का हिस्सा

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

Demonetization has achieved its primary goals

Amit Agrahari by Amit Agrahari
30 August 2018
in Economy
modi, demonetisation

PC: cloudfront.net

Share on FacebookShare on X

As per Reserve Bank of India (RBI) annual report, 99.3 percent of the demonetized currency is back to the central bank. The total value of demonetized 500 and 100 rupees notes was Rs 15,417.93 billion and now after more than a year of hectic counting RBI found that currency worth Rs 15,310.73 billion was returned to them. Almost all the newspapers, news websites, and TV channels have declared that demonetization failed drastically. In fact, some of them declared demonetization as the biggest mistake of Modi government in four years. The whole point is being presented with one-sided facts without taking a look at the flip side.

Here we are not defending demonetization or claim to have solved the debate. But the other side of the story needs to be told.

RelatedPosts

Busting negative campaign, falsehoods against GST

Remembering Arun Jaitley: Architect of Economic Transformation, Defender of Justice

Busting falsehoods around tax on popcorn, sale of old cars

Load More

The objective of demonetization was to crack down on black money. This was not a single step taken to curb black money. Demonetization was one step in the whole gamut of structural reforms like GST, Real Estate (Regulation and Development) Act, lakhs of shell companies’ closure, Benami properties act so on and so forth. The aim of all these steps was a formalization of the economy, curb on black money and an increase in tax to GDP ratio. So, we need to analyze the success or failure of demonetization on variables like formalization and digitalization of economy and increase in tax to GDP ratio.

The ratio of central government’s taxes to GDP was 10 percent in the fiscal year 2014-15. In subsequent fiscal years of 2015-16, 2016-17, and 2017-18, the steps like RERA, Jan Dhan accounts, demonetization, GST implementation, shell companies’ closure and amendment in Benami properties act were taken. Now, if we take a look at central government’s taxes to GDP ratio has gone up from 10 percent to 11.6 percent. This is a whopping 15 percent increase in tax to GDP ratio.  According to Economic Survey 2018, 10.1 million people filed income tax returns in the year following demonetization (November 2016- November 2017), while the average for the last six years has been 6.2 million. This shows an increase of over 1.5 times the previous number of income tax returns filed. So, the point is crackdown on black money has been successful because tax collection increased dramatically. The simplest definition of black money is ‘an income on which taxes are not paid’, so if people paid taxes or started paying taxes after demonetization, that simply means it achieved the primary goal.

Now let us examine whether formalization and digitalization of economy happened in last three year or not. The cash to GDP ratio has come down as low as 8 percent in recent years. This simply means that that cash (which is easier for black money parking and illegal transaction) circulation in the economy is lower in the post-demonetization period. If we take a look at the rise in ‘value’ and ‘number’ of the digital transaction in post demonetization period, they have grown at an explosive rate. So, the promise of formalization and digitalization of economy has also been achieved in the post-demonetization period.

The government has been able to achieve two primary goals of demonetization which were ‘crackdown on black money’ and ‘digitalization and formalization’ of the economy. There have been some negative spillover effects of demonetization, no one is denying that. But presenting one side of the story is completely wrong. The government is scrutinizing the ‘suspect accounts’ which are expected to have deposits of black money. That part is yet to complete. So, the so-called mainstream media should be more responsible in the analysis of demonetization.

Tags: Benami PropertiesBlack Moneydemonetizationgst
Share2949TweetSend
Previous Post

Rahul Gandhi to undertake Kailash Mansarovar yatra soon

Next Post

Delhi Police foiled Communist leader’s plot to kill Manipur CM N. Biren Singh

Related Posts

Global economic outlook worsens but India seen as growth driver: WEF report
Economy

Global economic outlook worsens but India seen as growth driver: WEF report

29 May 2025

The global economic outlook has worsened since the start of the year, as rising economic nationalism and tariff volatility...

Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping
Finance

Benefits of Using a Bajaj Finserv Insta EMI Card for Shopping

28 May 2025

Flexible financing has changed the way people shop in India. From large electronics to everyday essentials, more consumers now...

Understanding the differences between BTC season and altcoin season
Finance

Understanding the differences between BTC season and altcoin season

28 May 2025

The power shift between Bitcoin and altcoins (any other coins other than Bitcoin) has deepened in the past years,...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

Pakistan needs money from IMF to feed their people

Pakistan needs money from IMF to feed their people

00:15:20

Vacate PoK and more: Steps Pakistan needs to take to avoid Indian military action

00:06:36

Taking The Wire’s Propaganda Piece on VP to the Cleaners – Feat. Prof. Kapil Kumar

00:09:19

Rahul Gandhi Undermines India’s Electoral Integrity as Trump Applauds It

00:07:09

Why Pakistan army chief reminds two nation theory| what is the plan| Waqf Bill |Asim Munir| Jinnah

00:13:02
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited