8th November 2016 – 86% of Indian currency was wiped overnight
Black money would be destroyedInitial news of massive raids. Political opponents targeted. News of currency seized from various people. Widespread understanding among critics and supporters alike that the objective was to strangle cash flows (legal or otherwise) of political opponents during the upcoming election campaign in Uttar Pradesh.
ISI fake currency thwarted
The new notes would have special security features to prevent counterfeitingInitial reports in media suggested that the new notes would have special features that prevented counterfeiting them. At the very least, having to imitiate a new design would slow the counterfeiters down and reduce the amount of fake currency in circulation. Various reports in a pliant news media even took claims of special GPS chips embedded in notes and discussed them seriously, creating a perception among the masses that the new notes would be extraordinarily resistant to misuse or imitation.
Tax Collection would increaseAlmost 25% increase in tax collection has been unquestioningly gushed over by a pliant media. This increase in tax collection has been attributed to demonetisation.
Fake currency made legitimate!!!
The new notes had no special features that prevented counterfeitingThe new notes are of poor quality and apparently easier to counterfeit. Various leaders and affiliates of the ruling party have been caught with counterfeited notes and the equipment to make more. The trust in the notes is very low and “even the real notes look fake”. Hurried printing has resulted in real notes not having all features they should have. Among early news of counterfeiting included school children who had photocopied a Rs.2000 note and used it to dupe a sweets shop owner when they purchased treats using it.
There has been no changeTax collection has been increasing year on year for a long time now, and if you look at the trend over the years, this year’s increase in collection fits the curve. The country would profit
RBI would transfer profits to the governmentRBI transferred Rs 30,659 crore as surplus to govt. This is lower than the Rs 65,876 crore last year – less than even half the amount. The budget has assumed Rs 75,000 crore would come from RBI and PSBs. Not just is the windfall absent, the government has not even been able to reach half the amount of the previous year.
The windfall from demonetisation would fund welfareIn addition to the losses made by the government, the citizens have made losses – from disruption and decimation of livelihoods to time taken off daily wage work and expenses. There will be no benefit/compensation to them. Likely, a reduction of existing benefits will happen due to the lack of funds this “minor inconvenience” will cause.
Yep, demonetisation has been every bit of the clusterfuck it had been predicted to be, and we are not even close to recovering from the damage done.
Founder at Aam Janata
Vidyut has a keen interest in mass psychology and using it as a lens to understand contemporary politics, social inequality and other dynamics of power within the country. She is also into Linux and internet applications and servers and has sees technology as an important area India lacks security in.
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