Demonetisation is like dengue mosquito flying in Switzerland and wielding the stick in India: Arun Shourie

Questioning the demonetisation move of the Modi government, former Union Minister and journalist Arun Shourie on Saturday asked how the move would help check black money which is lying in foreign shores.

Demonetisation is like dengue mosquito flying in Switzerland and wielding the stick in India: Arun Shourie

Questioning the demonetisation move of the Modi government, former Union Minister and journalist Arun Shourie on Saturday asked how the move would help check black money which is lying in foreign shores.

"The one who actually has black money, is he keeping it in India in rupees?Those who have black money, they keep it outside. They buy companies, they buy estates. This dengue mosquito is flying in Switzerland and you are wielding the stick here?," he said, speaking at the ongoing Hyderabad Literary Festival (HLF) in Hyderabad.


He said that people do not exactly know whether demonetisation would help control black money or not. Shourie said that an idea does not become valid just because the people have voted for it and added that common people don't know the merits of or demerits of demonetisation.

He said that people don't know whether it is actually against black money or it actually generates more black money. "They don't know that (Rs) 15.50 lakh crore worth of currency was finished and it was said that it was for terrorist money or fake currency and that turned out to be 0.02 per cent, as per the government's own answer in Parliament. They don't know. Then, it is for GST. Cashless, what is such a big thing in cashless," he said.

Shourie advised that the government have concentrated on tax administration and boosting the banking sector, and alleged that nothing has been done in the last two-and-a-half years.

"The main task for the last six-seven years has been on the revival of private investment. It is because the private investment fell from 19% to 14% of the GDP during the last three years of Manmohan Singh's regime, that this whole period of stagnation, low growth started," he said.

"This was the principal task for this government. For that, they had to work on the banks and they had to work on the tax administration even more than on tax rates," he said.