Akhilesh Yadav says black money helped India at recessions

Posted on November 16, 2016

In a shocking remark, UP CM, Akhilesh Yadav said on Tuesday that black money had actually helped India when there was a global recession during 2013 – 2014! “I am very clear on this…black money should not be generated. Economic experts say the magnitude of the global economic crisis at times is not felt in India because of the strong parallel economy of black money”, Akhilesh Yadav said. “I am opposed to black money. I do not want it”, Akhilesh Yadav added. His remarks came in the wake of the sudden demonetization of the Rs. 500 and Rs. 1000 notes, which led to people rushing to banks and ATMs to deposit or exchange their currency notes, which in turn led to long queues outside the banks and ATMs of India. Akhilesh Yadav also said that whichever government had troubled the poor was shown the door by the commoners. “This government has caused immense pain to commoners”, he said.

Akhilesh Yadav is of the opinion that demonetizing Rs. 500 and Rs. 1000 notes will not serve the purpose of removing black money from the Indian economy! “It’s good that corruption is being checked and people have become aware that there should not be any corruption. But this problem cannot be overcome merely by changing Rs 500 and Rs 1000 notes. Those who used to keep such notes are now waiting for Rs 2000 notes”, Akhilesh Yadav said on Tuesday. Read more on Black Money

Ever since PM Narendra Modi had announced that Rs. 500 and Rs. 1000 notes would be demonetized, people have been rushing to ATMs and banks to deposit or exchange their money. The motive of the move is that, people who have black money, mostly in the order of crores, will only have high value denominations like Rs. 1000 or Rs. 500. By demonetizing those notes, people who have black money will be forced to deposit their money in banks before the given deadline to get access to legal currency. PM Narendra Modi said that if people, who have black money, reveal and deposit their money in banks on or before 30^th of December, this year, they need only to pay 45% tax on their black money. They will not be questioned about the source of the black money. On the contrary, if people, who have black money, do not disclose or deposit it in the bank/s on or before 30^th of December, are caught, they will be questioned about the source of the black money and could even be imprisoned for life or given a death sentence if the government finds it appropriate to do so. This move can ensure that black money, in the form, of liquid cash, which is stashed in India, is retrieved. In fact the total deposits of black money in banks so far, have exceeded Rs. 7 lakh crores. But it cannot retrieve black money in the form of assets, gold, silver, shares or foreign currency stashed in India and abroad. The government of India must take some steps to retrieve that as well. Black money only causes a loss of revenue to the government. The people who had black money may not have been affected by the global recession, but most of the commoners in India did feel the impact to some extent. Hence Akhilesh Yadav’s comment that black money actually shielded India from global recession is wrong. Moreover, if that money was with the government (if it was honest) then too India would not have been affected by the recession (at all). We’ll have to wait and see what PM Narendra Modi has to say about Akhilesh Yadav’s comment. Read more on Startup News