NEW DELHI: Finance Minister Arun Jaitley had on Thursday assured the citizens that things will get much better as the government looks to speed up the remonetization process, post the December 30 deadline to exchange the demonetized Rs 500 and Rs 1000 currency notes. Sources said, that the Prime Minister will address the nation ahead of the New Year to announce government’s policy after December 30.
Though the government has not yet indicated on lifting restrictions after the ‘demonetization deadline’, it is understandable that the restrictions will continue for another one month with the RBI still struggling to provide banks with adequate cash. However, sources said that the government may raise the withdrawal limit to Rs 4,000 per day from January 2, 2017.
Addressing the media, a day before the demonetization process officially comes to an end, Finance Minister Arun Jaitely said that the tough phase of the demonetization has gone and that now it is with the government to pace up remonetization of currency. “We are monitoring the situation on a daily basis and I am hopeful that everything will be normal within a few weeks. The Reserve Bank of India will be pumping more Rs 500 notes into the market and things from here will only get better. much better”, the Finance Minister said.
“A large part of the currency has been replaced successfully so far and the banks are now able to lend to their customers”, he added.
According to the Finance Minister, after the Indian government has announced demonetization, the Indirect tax revenue grew 26.3 percent while direct tax by 14.4 per cent. Also, the Central excise went up by 43.3 percent as customs saw an increase of 6 percent. The figures were recorded during the period of November 8th to December 19, the Huffingtonpost reports.
Meanwhile, the Finance Minister admitted that there has been a considerable impact on GDP because of demonetization while adding that it has been better than what the government has expected it to be.