Black and white of a tough decision Demonetising Rs 500, Rs 1000 notes
- The Sangai Express Editorial :: November 10 2016 -

Demonetising Rs 500, Rs 1000 notes affects life in Manipur :: Pix - TSE

Not unexpectedly the decision of Prime Minister Narendra Modi to demonetise Rs 1000 and Rs 500 notes has received mixed reactions from different sections of the people.

While economists and industrialists have hailed the decision to check black money as well as curb the flow of money to finance terrorism and corruption, others like Mamta Banerjee of the Trinamool Congress and West Bengal Chief Minister has said that this is just a drama to divert people’s attention from the fact that the Prime Minister has not been able to get back the promised black money stashed abroad.

Whatever the case, it stands that the Prime Minister has taken a tough decision and it is at times like this that tough decisions are indeed needed.

There is a reason why Infosys founding chairman Narayanan Murthy has gone on record to say that the demonetisation move is a master stroke of the Prime Minister.

It is there on record that after the Government decided to grant a four month amnesty to tax defaulters some time back, the declaration of hidden assets was nearly 10 billion dollars.

In its 2010 report the World Bank estimated that the shadow economy in India was 20.7 percent in 1999 and this shot up to 23.2 percent in 2007.

Take the unaccounted wealth stashed in foreign banks, such as the Swiss Bank and one can have a fair idea of how some unscrupulous, rich people have been dodging the laws of the land.

It will also be interesting to see how the decision of the BJP led Government at the Centre impact on Manipur, particularly in the run up to the Assembly election which is scheduled to be held in the early part of next year.

Will money flow as easily as in the previous elections ?

Most likely there will be some curbs and this is where the Election Commission of India and the office of the Chief Electoral Officer need to step in and see how they can work in conjunction with the other law enforcing agencies and ensure that the new step taken up by the Centre has an impact on the election here.

As with any tough decisions taken, there can also be the downside to this one too.

As former Union Finance Minister P Chidambaram pointed out while addressing the press, the decision to demonetise Rs 1000 and Rs 500 notes will adversely affect the small time traders, students and daily wage earners.

His questioning the rationale of easing out the Rs 1000 and Rs 500 notes and introducing a new Rs 2000 note also makes sense.

Moreover this is the wedding season and to the people of Manipur, the question of how they are going to give Potyeng or Potpang will surely arise.

Anyway as with everything associated with tough decisions, the people will have to learn to adjust and bear the inconveniences for the benefits of all.