The government’s decision to junk two high-value currency notes created a new normal that will help the Indian economy in the long run, finance minister Arun Jaitley said in his fourth and unique budget presentation on Wednesday.
Speaking in the Lok Sabha, Jaitley said the government had replaced sluggish growth with high growth and launched a “massive war” against illegal cash holdings.
“Demonetisation is a bold and decisive measure… It seeks to create a new normal wherein the GDP will be bigger, cleaner and real,” the minister said.
He said India was seen as an “engine of global growth” that witnessed “historic reform” in the last one year in the form of demonetisation and the goods and services tax.
“Our government was elected amid huge expectation, the underlying theme being good governance. We thank the people for their support,” Jaitley said.
He said the effects of scrapping Rs 500 and Rs 1000 notes – such as a nationwide cash crunch wouldn’t spill over into the next year and that the levels of injecting cash into the economy would soon reach “comfortable” levels.
“We are moving from informal to formal economy and the government is now seen as a trusted custodian of public money.”
