Former deputy chairman of the planning commission Montek Singh Ahluwalia described demonetisation drive by the Centre as ‘disruptive’ and ‘shocking’ on Friday. He said: “Although the Central government is talking about short-term pain and long-term gain, but they have not yet given the estimate of such gain. They have to clarify, what the magnitude of long-term gain is.”
The revered economist was keynote speaker at ‘India Policy Reforms: Priority of the Future’ organised by Bharat Chamber of Commerce (BCC). “The Centre’s version is short-term pain will result in long-term gain. But, at present, we are not in a position to access the gain. It is now looking disruptive and shocking thing,” he said.
Discussing on the growth rate, former deputy chairman of the planning commission said that he is expecting to see 7 per cent growth at the end of the current financial year. “I think that the demonetisation could hamper only 1-2 per cent of GDP growth. Although the various spokesperson of the Central government is saying that the growth would be around 10-11 per cent, which I feel is far from reality,” Ahluwalia said. “I always say, there is an underline capability of economy, which earlier had pushed the GDP to 8 per cent. But I do not think it will grow up to a double digit after the end of ongoing financial year,” Ahluwalia, the deputy chairman of the planning commission during UPA II, added.
Ahluwalia had tendered his resignation from deputy chairman of the planning commission post in May 2014 following the impending end of the UPA II regime at Centre. He was previously the first Director of the Independent Evaluation Office at the International Monetary Fund. He was asked, by which law, the Central government could access to common people’s accounts to restrict them withdrawing money, as there are arguments over implementation of RBI act, 1935, Section 26(2).