New Delhi, January 7, 2017

The resolution said that informal economy will now increasingly integrate with the formal economy

The Bharatiya Janata Party (BJP) national executive today unanimously congratulated the Narendra Modi government for its 'historic' note ban decision and “its successful and credible implementation”, including taking the demonetisation decision “with full fledged preparations”.

The resolution, moved by Finance Minister Arun Jaitley, termed demonetisation a sacred and patriotic move and a step to “transfer black money from the tax non-compliant to the poor and the weak”.

The BJP national executive passed an economic resolution on the concluding day of its two-day national executive. The resolution stated that “demonetisation was necessary for decimating the parallel economy of black money and for smooth functioning of the GST (Goods and Services Tax regime) in near future”.

The resolution noted that the currency swap decision has meant that there is today more money with the banks to lend and interest rates have reduced. It said that black money has been deposited in banks and has, therefore, lost its anonymity.

The resolution said that the informal economy will now increasingly integrate with the formal economy, which will lead to higher revenues with the states and the Centre and also lead to “bigger and cleaner Gross Domestic Product.”

Commerce Minister Nirmala Sitharaman, briefing the media after the adoption of the economic resolution said that data until November end shows income and revenue of state governments has increased, except may be Bengal.

She said the party’s Kisan Morcha appreciated the note ban decision as it brought relief to farmers and reduced wasteful expenditure. She said the government will continuously get information on unaccounted money stashed abroad from Switzerland and United States.

The resolution expressed the executive's gratitude to people for their support to the note ban move, and noted how there wasn’t even a single incident of lawlessness in the 50-days of the exercise. It also slammed the opposition for its destructive politics.

The resolution said note ban is an important step in the remaking of an equitable and strong India. “This step has reaffirmed the belief that patriotism isn’t just a political talk but it is the political will to take strong and decisive steps to favour the last man,” it said.

It listed demonetisation as one among several decisions by the Modi government to achieve a cleaner economy.

[The Business Standard]