Jaitley defends demonetisation, says note ban gave economy new direction

New Delhi : Defending the government's decision to demonetise high value currency last year, Finance Minister Arun Jaitley on Tuesday said that demonetisation cannot be a one-stop solution to cleanse all corruption, but it did give a "new direction" to economic and financial decisions.

"Demonetisation is not a one-stop solution to end corruption. It cannot be, but it did change the agenda. And that changed agenda is that we should go towards less-cash economy. Individual tax payers' number has increased, digital transactions have gone up and terror funding has squeezed," Jaitley said. 

The Finance Minister said he was "more than satisfied" with the new direction the economy is moving. 

"We at BJP believe that for the nation's economy and its future, it was necessary to change the status quo. Domination of cash in any economy, especially having 86 per cent of currency as high denomination notes, and excessive cash transactions lead to tax evasion. In such cases the taxpayers have to bear the burden, of the evaders too," Jaitley said.

He said it is unjust that resources meant for the country's development and welfare of the poor should be kept in rich people's coffers. He said that though corruption will not end even in less-cash system it will become difficult to indulge in corruption.