Decoding arvind subramanian's stand on demonetization: did ex-cea ever support note-ban?

8.Demonetization was a necessary radical, historic decision with profound impact on the India Economy: Economic Survey 2016-17 The Economic Survey 2016-17 was tabled in Parliament on January

31, 2017, nearly 3 months after demonetization was announced. The survey authored by a team led by Surbramanian said demonetization resulted in widening of taxpayers' base and rise in

household saving. The survey argueed that the move was indeed a necessary “radical”, historic” decision with “profound” impact on the India Economy. “India’s demonetization is unprecedented

in international economic history, in that it combined secrecy and suddenness amidst normal economic and political conditions,” it said. “In fact, India has given a whole new expression to

unconventional monetary policy, with the difference that whereas advanced economies have focused on expanding the money supply, India’s demonetization has reduced it. This policy could be

considered a “reverse helicopter drop”, or perhaps more accurately a “helicopter hoover." "Taking seasonality into account it is found that there is a 0.8 per cent monthly trend

increase in new tax filers (annual growth of nearly 10 per cent). The level of tax filers by November 2017 was 31 per cent greater than what this trend would suggest, a statistically

significant difference," said the Economic Survey 2017-18 released by the government said. "This translates roughly into about 18 lakh (1.8 million) additional taxpayers due to

demonetization-cum-GST, representing 3 per cent of existing taxpayers." Besides, the survey said one of the main aims of demonetization and the Goods and Services Tax (GST) was to

increase the formalisation of the economy and bring more Indians into the income tax net, which includes only about 5.93 crore individual taxpayers (filers and those whose tax is deducted at

source in 2015-16). (Photo: PTI)