PM Narendra Modi (R) listens to ex-PM Manmohan Singh in RS. PTI
Simran Sodhi
Tribune News Service
New Delhi, November 24
The Rajya Sabha today saw the debate on demonetisation resume, but for a brief period. Former Prime Minister Manmohan Singh opened the debate in the House on behalf of the Congress, calling the government decision “monumental management failure.” He accused the government of ignoring the plight of the poor and the aam aadmi and said the decision was in fact “a case of organised loot, legalised plunder of the common people.” Prime Minister Narendra Modi was present in the House when Dr Manmohan spoke. The former PM warned the government that the decision will harm the country’s economy. “The GDP of the country will decline by about 2 per cent by what has been done. And this is an underestimate and not an overestimate,” he said. The Opposition parties in the Rajya Sabha have been demanding that the PM be present in the House when the debate on demonetisation takes place. The PM today came to the House during question hour and for that one hour, the debate was resumed. Dr Manmohan’s speech was short, but highly critical of the government’s November 8 decision to scrap Rs 500 and Rs 1,000 notes. “The PM has said wait 50 days, it is a short period. But for the poor and the deprived, even 50 days can bring about disastrous effects,” he said, referring to a speech made by Modi recently where he asked for 50 days to complete the crackdown on black money.After Dr Manmohan, it was the turn of Naresh Agrawal of the Samajwadi Party who in light banter also took a dig at the timing of the demonetisation announcement, linking it to the upcoming poll in Uttar Pradesh. He alleged the decision was “not taken in the national interest, but considering UP elections.” Derek O’Brien of the Trinamool Congrss (TMC) countered several arguments put forth by the government on the “benefits” of demonetisation. “If only 2 per cent people hold black money, then why are the rest of 98 per cent people being made to suffer due to demonetisation,” he asked the government.The House was then adjourned for lunch. When it re-assembled at 2 pm, the Opposition members refused to carry forward the debate in the absence of the PM. An agitated Finance Minister Arun Jaitley accused the Opposition of devising ways to avoid the debate.
Jaitley objects to speech
New Delhi: Finance Minister Arun Jaitley objected to Dr Manmohan Singh’s speech saying: “If there is no debate on demonetisation, nobody from the Opposition will be allowed to speak.”
Breach of privilege notice
New Delhi: Congress RS MP from Goa Shantaram Naik filed a breach of privilege notice against PM Modi for making statements on note ban outside Parliament, even when both Houses were in session. PTI
LS adjourned amid din
The Lok Sabha was adjourned for the day on Thursday after the Opposition continued its protest demanding discussion on the demonetisation issue under an adjournment motion.
Jaitley kept in dark: SP“There are those who say the PM did not take even (Finance Minister) Arun Jaitley into confidence (about note ban). If Arunji had known, he would have whispered about it in my ears. He knows me”.—Naresh Agrawal, SPIt will kill economy: TMC“Anyone who opposes you, Mr PM, is not anti-national or in favour of black money. Why are you giving us this lecture on black money? We are opposing you since we believe this will kill the economy” —Derek O’Brien, TMCTreat it as calamity: Tata“It may be worthwhile to consider special relief measures similar to those employed at times of national calamities to serve the poorer segment of the population for their daily needs.” ——Ratan Tata, TATA Sons chairman
Demonetisation: Manmohan Singh’s full speech in Rajya Sabha
Calling it a ‘monumental mismanagement’, former Prime Minister Manmohan Singh on Thursday said that the demonetisation of high value currency notes has caused great distress to the common man of the country. He remarked that the GDP of the country could shrink by 2 percentage-points due to the way it has been implemented.
I rise to highlight some of the problems that have risen after the decision to demonetise Rs 500 and Rs 1000 currency notes.
Prime Minister has been arguing that this is the way to curb black money, to prevent growth of forfeiture currency notes and also to help in control of terrorist finance activities. I do not disagree with these objectives. But I do want to point out this that in the process of demonetisation monumental mismanagement has been undertaken about which today there is no two opinions in the country as a whole. Even those who say that this measure will do harm or cause distress in the short term but be in the interests of the country in the long run should be reminded of what John Keynes said once,” In the long run all of us are dead.”
And therefore, it is important to take note of grievances of the ordinary people who have suffered as a result of this imposition on the country overnight by the Prime Minister. And I say so with all responsibilities, that we do not know what will be the final outcome.
Prime Minister has said that we should wait for 50 days. Well 50 days is a short period. But for those who are poor and from the deprived sections of the society even 50 days torture can bring about disastrous effects. And that’s why about 60 to 65 people have lost their lives, maybe more. And what has been done can weaken and erode our people’s confidence in the currency system and in the banking system.
I would like to know from the Prime Minister the name of any country he may think of where people have deposited their money in the banks but they are not allowed to withdraw their money. This alone,I think, is enough to condemn what has been done in the name of greater good of the people of the country.
And Sir, I would further like to point out that in my opinion that the way the scheme has been implemented will hurt agricultural growth in our country, will hurt small industry, will hurt all those people who are in the informal sector of the economy. And my own feeling is that the national income, that is the GDP, can decline by about 2 per cent as a result of what has been done. This is an underestimate, not an overestimate. Therefore, I feel that the Prime Minister must come up with some constructive proposal on how we can implement this scheme and at the same time prevent this distress that has been caused to the common people.
It is no good that everyday the banking system comes with modification of the rules, the conditions under which the people can withdraw money. That reflects very poorly on the Prime Minister’s office, on the Finance Minister’s office and on the Reserve Bank of India. I am very sorry that the Reserve Bank of India has been exposed to this sort of criticism which I think is fully justified.
I, therefore, would not like to say much more than this. I urge upon the Prime Minister to find practical, pragmatic ways and means to relieve the distress of the people who happen to be a great majority. After all, 90 per cent of our people work in the informal sector, 55 per cent of our workers in agriculture are reeling in distress. The cooperative banking system which serves large number of people in the rural areas is non-functional and has been prevented from handling cash. So, in all these measures convince me that the way this scheme has been implemented is a monumental management failure, and in fact, it is a case of organised loot, legalised plunder of the common people.
With these words, sir, I conclude. It is not my intention to pick holes in what one side does or another side does. But I sincerely hope that the Prime Minister will view that this late hour will help us to find practical, pragmatic ways and means to provide relief to the suffering of the people of this country. Thank you.
Dr. Manmohan Singh speech on demonetization failure at Rajya Sabha 24th Nov, 2016
Modi is riding high now but if things don’t improve fast, the triumphalism over demonetisation could become a selfgoal
For those still surprised by Prime Minister Narendra Modi’s audacious demonetisation gamble, the past maybe a useful guide. In 2007, just ahead of the Gujarat assembly elections, Modi kickstarted power reforms in the state as chief minister, including a hike in rates and police action against farmers involved in power theft. When an angry RSS-backed farmers’ delegation met the chief minister, Modi’s response was reportedly defiant: “I will step down as chief minister but not back down. You can always replace me if you wish.” In the elections that followed, Modi won the day and silenced his critics.
PTIIf the queues don’t shorten because of a creaking banking system, if the cash crunch extends beyond the 50day mark…then public support can easily turn into rage at being taken for granted by the leadership
In a sense, the 2007 power reform battle in Gujarat, much like today’s demonetisation challenge, is typical Modi: He is a leader whose self-belief, bordering on narcissism, leads him to short circuit political systems and reject sectional interests in the confidence that he has the answers to all likely pitfalls. It is both a strength and weakness: The lack of self-doubt makes him a consummate risk-taker, but also someone who can at times act impulsively without due consultation.
Is Gujarat a mini-India then, and will Modi triumph yet again? When almost the entire Opposition protests against you within and outside Parliament, there is reason to believe that demonetisation has provided fresh impetus to a potential grand anti-Modi alliance. When even your own allies, like the Shiv Sena, speak out and BJP MPs express reservations, then the disquiet has to be taken on board.
When rising anger in queues outside banks over a cash crunch can no longer be masked as temporary inconvenience, the political leadership should be worried. Nor can the growing concerns of leading economists and global research groups warning of an economic slowdown and job losses be wished away. Indeed, on the face of it, it appears that the prime minister who has chosen to even stay away from a Parliament debate on the issue is being pushed on the defensive: What else explains the rather bizarre app-based poll conducted by the PMO — a classic self-simulation exercise designed to sway public opinion.
The truth though is that the prime minister has already won round one of the demonetisation battle. First, he has successfully pitched his political opposition as a “coalition of the corrupt’’. A number of his political opponents are tainted by sleaze: Can a Mulayam Singh or a Mayawati, both of whom have faced disproportionate assets cases, take the moral high ground on corruption? Can Mamata Banerjee completely erase the blot of the Saradha chit fund scam or the Congress of the 2G and coal muddles? The fact that no corruption scandal has yet stuck to Modi gives him the moral edge in his battle with the Opposition.
Second, Modi has mastered the art of shaping the media narrative to his advantage through populist nationalism. By positioning demonetisation as a sharp weapon in the “war” on black money and terror funding, he has created a post-truth dialogue where even an intelligent argument as to why demonetisation will have limited impact on the black economy is lost in the cacophony of treating any dissent as “anti-national”. Any criticism of the prime minister’s move is instantly identified with being an apologist for corrupt forces, thereby preventing any sane debate on the issue.
Third, the prime minister has successfully projected himself as an “agent of change”, someone who wants to wipe away decades of sloth and dishonesty in the political system. The spectacular Modi victory in 2014 was predicated on the promise of “achhe din”, of dramatic change that would end the Congress era of slow-moving governance once and for all. By taking a tough decision, Modi has cemented his image as a strong leader with a self-proclaimed “chhappan inch ki chhati” (56-inch chest).
Finally, Modi has without doubt built a personal connect with millions of Indians who are inclined to trust him. The “jumla” tag may have been used by his critics to brand him as a leader who promises more than he delivers, but on the ground he still enjoys enormous goodwill, especially among youth and the urban middle class. For them, Modi still symbolises an aspirational India, one that wants to break free of the status quo. Which is why even amidst mounting public anger over restrictions on withdrawing your own hardearned money, there is a willingness to give the prime minister the benefit of the doubt.
The key question is, of course, for how long will Modi ride on individual charisma without ushering in greater legal and institutional reform? If the queues don’t shorten because of a creaking banking system, if the cash crunch extends beyond the 50-day mark, if small and medium enterprises begin to lay off employees, if farmers struggle with rural credit, if a tax bureaucracy becomes oppressive, then public support can easily turn into rage at being taken for granted by the leadership. Which is why the chestthumping Modi cheerleaders need to be careful in projecting demonetisation as a magic bullet that will make their leader invincible. In the short run, it is highly likely that Modi has scored a political slam-dunk over his rivals ahead of crucial assembly elections but if an economic slowdown begins to hurt the aam aadmi, then today’s triumphalism may become tomorrow’s self-goal.
Post-script: A senior minister in the Modi government claimed in Parliament’s central hall that the pain of demonetisation will last for only two quarters. Now, 180 days may seem a short span in the life of a nation, but for millions dependent on a cash-driven informal sector, six months can seem an eternity. As a cash-strapped fisherman living by Goa’s River Mandovi told me, “In this country, the big fish get away, the small are always trapped.”
The government tonight extended the last date for use of the scrapped Rs 500 notes till December 15 while withdrawing Rs 1,000 notes and doing away with the over-the-counter exchange of cash with immediate effect.A notification by the Ministry of Finance said that Rs 1,000 notes would no longer be allowed for exemptions announced earlier. These notes, however, could be deposited in bank accounts.“It has been observed that over-the-counter exchange of old currency notes of Rs 500 and Rs 1,000 denomination has shown a decline. It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1,000 notes in their bank accounts,” the statement read.“This will encourage people who are unbanked to open bank accounts. Consequently, there will be no over-the-counter exchange of old Rs 500 and Rs 1,000 notes after the November 24 midnight,” it added. The government had earlier permitted exemptions for certain transactions wherein payment could be made through scrapped Rs 500 and Rs 1,000 notes, which included purchase of fuel from petrol stations.
On exemption list
Transactions under all exempted categories but only through old Rs 500 notes
School fee up to Rs 2,000 in govt schools; fee in central or state govt colleges
Pre-paid mobile top-up up to Rs 500
Purchase from consumer co-op stores up to Rs 5,000
Payment of utilities, limited to water, electricity bills
Toll at plazas through old Rs 500 notes till Dec 15
Exchange by foreign citizens up to Rs 5,000/week
Nepal bans new Rs 500, Rs 2,000 notes
Kathmandu: Nepal Rastra Bank on Thursday banned the use of India’s new currency of Rs 500 and Rs 2,000 denomination, terming them “unauthorised and illegal”. An NRB spokesperson said these would be legal in Nepal only if India issued a FEMA notification under the Foreign Exchange Management Act. PTI Rupee in freefall, hits all-time lowMumbai: The rupee went into a freefall on Thursday, hitting an all-time low of 68.86 against the dollar as the demonetisation after-effect played out and concerns grew about a possible Fed rate hike in the near term. report on page 18BJP ally Sena sings a different tuneMumbai: Shiv Sena chief Uddhav Thackeray has asked the BJP to take former PM Manmohan Singh’s words on demonetisation affects seriously. “We won’t hesitate taking a critical stand in the way demonetisation is being implemented,” said Thackeray. PTI
Note ban a monumental management failure: Manmohan Singh
Former PM Manmohan Singh. PTI
Tribune News Service
New Delhi, November 24
Pointing out the extent of hardship that demonetisation has caused the common man and small businesses, and the likely hit of 2 per cent on the GDP, former prime minister Manmohan Singh on Thursday said this had been coupled with “monumental” mismanagement in implementation, and a case of “organised loot and legalised plunder”.Manmohan said the demonetisation move of the BJP government could not prevent black money and terror funding.(Follow The Tribune on Facebook; and Twitter @thetribunechd)Speaking in the Rajya Sabha, he said the GDP would take 2 per cent hit due to demonetisation.”These measures convinced me that the way the scheme had been implemented, it’s a monumental management failure. And in fact, it is a case of organised loot and legalised plunder. It is not my intention to pick holes what this side or other side does. But I sincerely hope that the PM even in this late hour will help find us pragmatic ways to provide relief to the suffering people,” he said as the debate on the issue resumed after Prime Minister Narendra Modi came to the House.“I want to ask the PM if he can name a country where people have deposited their money but are not able to withdraw it,” he said.He said those who said demonetisation is good in the long run should recall the quote, “In the long run we are all dead”, Manmohan said.The cooperative banking sector, which was serving a large number of people in the rural sector, was not operational, he said.”The Prime Minister asked people to wait for 50 days, but for the poor section these days can be detrimental,” the Congress leader said.He said: “Sixty to 65 people have lost their lives, what has been done can weaken our people’s confidence in the currency and banking system.” With Agencies
Toll suspension on national highways extended till Dec 2
Rs 500 notes to be accepted at toll plazas from Dec 2-15
Sufficient swipe machines would also be installed at toll plazas with help from SBI and other banks. File photo
New Delhi, November 24
The government on Thursday extended suspension of toll collection on National Highways till December 2 midnight.The government also announced that scrapped Rs 500 notes would be accepted at toll plazas on National Highways from December 2 midnight to December 15.(Follow The Tribune on Facebook; and Twitter @thetribunechd)Sufficient swipe machines would also be installed at toll plazas with help from SBI and other banks.The government had earlier extend the deadline three times.A day after Prime Minister Narendra Modi announced ban on Rs 500 and Rs 1,000 notes to tackle corruption and black money, government had on November 9 said that no toll fee would be collected on National Highways till November 11 midnight.The deadline was again extended till November 14 midnight and then till November 18 midnight.The government had earlier decided to accept the withdrawn notes at toll plazas till November 11 midnight but that led to chaos in the absence of adequate change, causing massive traffic jams.— PTI
PUNJAB GOVT WILL CHARGE ON STATE OWNED TOLL PLAZA::sukhbir badal
The bankrupsy of Punjab Govt has forced to charge on Stae owned Plazas against the notification of the Central Govt.
The tall promises claimed by S.Prakash Singh Badal seems to be false and can be termed as Lip Services as far as concessions for the Ex-Servicemen are concerned.
An Ex-servicemen was charged Rs 62/- on one of the Toll Plaza located along the canal from Neelo Bridge to doraha
The Road is incomplete and Braidge at Railway Crossing near Doraha is far from Completed. The Commuters are facing difficulties once the railway Xing Gates are closed due to heavy traffice.
PTIIf the queues don’t shorten because of a creaking banking system, if the cash crunch extends beyond the 50day mark…then public support can easily turn into rage at being taken for granted by the leadership
