Manmohan singh speech in Lok Sabha on Demonetization

  1. Former PM Manmohan Singh today spoke his heart out in Parliament during the debate on demonetization.
  2. Attacking the government decision from the front, he said that monumental mismanagement has been undertaken in implementation of demonetization. It is true as without adequate currency notes and infrastructure, it makes no sense to demonetize the present currency.
  3. It is also worth wondering that even if one has all the money as white, still only 2000 can be withdrawn ! It is not justified to punish the honest in the blind pursuit of black that the people turn red !
  4. As per him demonetization is a case of organized loot and legalized plunder of the common people. This is true as well. State and its apparatus is holding people in long queues and forcing them to bring out their money before them without adequate alternatives which is causing huge inconvenience.
  5. He argued that the move will hurt agriculture, small industry and everyone in the unorganized sector. Today 90% of the people work in unorganized sector with little or no banking facilities. This move is definitely a curse on their livelihood and well being for atleast next 6 months.
  6. On GDP growth, he said that it can fall by 2 % and that is an underestimate, it means there are chances for GDP to fall more than 2 % as well.
  7. Lack of cash have led to reduced footfalls in the markets, shops, malls etc impacting the demand singnificantly.
  8. This is going to affect the production adversely and thus his argument of GDP slowdown is correct, but how has he arrived at the precise number is well known to Manmohan singh only.
  9. Futher on PM Modi’s request to bear for 50 days Manmohan singh said, these 50 days could be small for some but they are disastrous for poor and marginalized people.
  10. He also said that the frequent changes in the demonetization move, including frequent revisions in the amounts that people can withdraw reflects that all the future problems were not anticipated and decision was taken in a total haste. This is something PM Modi would himself agree!
  11. Manmohan singh is a renowned economist and the valid points made by him were already discussed at platform in yesterday’s post on demonetization survey.
  12. The opposition has made it clear that they are not against demonetization but against the manner it was announced or implemented.
  13. The government is now in damage control mode as crores of money is now being released for farmers, but had it been conceived earlier, the damage could have been reduced.