Telangana minister K T Rama Rao has said that PM Narendra Modi's “half-baked demonetisation idea threw the economy into chaos, leading to eight consecutive quarters of slowdown.”
On the eve of the demonetisation's sixth anniversary, the TRS scion demanded that the PM should “tender apology to the people of the nation for the colossal policy failure that crippled the growing Indian economy.”
“After the hasty decision to scrap all the high-value currency in circulation, the amount of currency with public has hit an all-time high of Rs 30.88 lakh crore - is a proof of how spectacularly demonetisation has failed,” said minister KTR on Monday, while “recounting the horrors of demonetisation.”
“The Prime Minister has claimed that if the desired benefits are not seen within 50 days, he could be burnt alive. But after six years, the lives and livelihoods of crores of poor and middle income group Indians have been burnt down by demonetisation,” said KTR.
The minister said that PM Modi and the ruling BJP had listed several ‘benefits’ that would accrue from the demonetisation decision.
“Six years later, it is clear that all those claims of PM Modi have fallen flat. Wild claims were made that demonetisation will reduce cash in circulation, end terrorism, reduce black money, reduce counterfeit currency and bring in cashless economy,” added KTR.
The minister stated that the cash in circulation has increased by 72 per cent or Rs 12.91 lakh crore from Rs 17.97 lakh crore on November 4, 2016.
“Our country continues to witness terrorist activities on a regular basis, there is no hope of any large amount of black money coming back into the formal economy, and more alarmingly there is an increase in counterfeit currency. Hundreds of lives were lost in the serpentine queues at ATMs during the initial weeks of demonetisation,” reminded the Minister.
KTR said that between 2016 and 2019, “demonetisation has resulted in a whopping 50 lakh people losing their jobs.” 88 lakh taxpayers did not file returns in the year of note ban due to loss in jobs or incomes. The MSME sector suffered the most as these small and medium enterprises depended a lot on cash and the sudden demonetisation resulted in closure of lakhs of MSMEs across the country, the minister said.