Demonetisation broke the myth that the powerful cannot be harmed: Shivraj Singh Chouhan

Bhopal: Terming the demonetisation decision as "historic", Madhya Pradesh Chief Minister Shivraj Singh Chouhan said Prime Minister Narendra Modi with his "courageous" call broke the myth that powerful people can't be harmed in the country.

"India witnessed a historic decision on November 8, 2016. This day has given a meaningful reply to the queries raised by the people at large on the style of functioning of governments."

 Demonetisation broke the myth that the powerful cannot be harmed: Shivraj Singh Chouhan

File image of Shivraj Singh Chouhan. AFP

"Often allegations are levelled against the governments that they can not take tough decisions under pressure. They fear to take decisions that could harm powerful people," Chouhan said in his blog on the issue on Thursday evening.

"Our PM has broken the myth with his courageous decision to demonetise Rs 500 and Rs 1000 currency notes," he said.

"The decision of demonetisation is historic in a way that it surprised everyone and this is the distinct feature of it. India has seen decision of demonetisation twice in the history of 100 years but those decisions gave ample time to the people having black money in the form of currency to change it.

"Thus the main objective of the decision was partially met. This time, however the decision did not give any time to people with black money," the Chief Minister said.

Those criticising the decision say that it could have been taken with better planning and people should have been given ample time. It is beyond my comprehension as to whom these critics are referring to when they talk of giving time to people, he wrote in the blog.

"Who are those about whom critics say time should have been given to them. It is obvious that they are favouring those who had black money in the form of currency," Chouhan said.

The decision of the Prime Minister to encourage cashless transaction is to transform the country from a developing nation to a developed one. All the aspects should be examined before criticising such a move, said Chouhan.

The Congress and other political parties say that demonetisation has wrought havoc on farmers and they could not sow on time.

In Madhya Pradesh, this year already sowing has been done on 105 lakh hectare so far as compared to a total of 108 lakh hectare last year. The sowing will further go up to 115 lakh hectare. It is clear that sowing has not been affected, he said.

"Those who opine that cashless transaction is not possible in this country, are challenging the wisdom and capacities of the 120 crore people of the nation without testing it. This is injustice to the people. The last two months have witnessed an impressive 77 percent increase through internet banking in the Central Bank of India in Madhya Pradesh alone," said the chief minister.

Referring to VAT, he said "Another benefit of cashless transaction is also very clearly perceptible. In December the VAT revenue has increased 14 per cent whereas there was a fall in revenue from other taxes.

"This makes it amply clear that the tax evasion that took place in cash transaction has reduced in cashless transaction. This will improve tax collection and the state governments will be able to spend more on welfare schemes."

"I have always believed that the people are wise enough to know what is in their interest. They are fully aware that the Prime Minister's step of demonetisation is a masterstroke against those indulging in amassing black money, anti-national activities and circulating counterfeit currency in the market.

"The people very well understand that this is a step in the interest of the country and are extending wholehearted support to promoting cashless economy. This will definitely help India catch up with the most developed nations," he added.

Updated Date: Dec 30, 2016 15:17:40 IST