Demonetisation still haunting Our Lives
It is three years since Narendra
Modi struck the nation with
demonetization, that is, withdrawing
notes of denominations of Rs.1000
and Rs.500 from circulation and
introducing new Rs.2000 and
Rs.500 notes. The explicitly stated
purpose was the cleaning of
economy of black money. The
people of India believed Modi and
faced many hardships without
complaining with the hope of sunny
days ahead as promised. But
Narendra Modi belied their hopes
and demonetization not only failed
miserably in unearthing black money
but also still haunting the people.
No doubt black money cripples
our economy. Many official reports
found that black money is not
stashed in cash, but sooner or later
convert into other valuable assets
like real estate, gold etc. Yet a canard
was spread that black money means
cash and demonetization would make Rs, 3 lakh crore of cash
cancelled. The RBI reported that
99.2 per cent of cash had come
back to it. This fact showed that
demonetization had not impacted
the generation and circulation of
black money.
The government claimed t6hat
tax compliance could get an impetus
and as a result tax collections could
increase substantially. Narendra
Modi himself claimed that the
number of income tax payers had
increased. Yes more people are
filing their tax returns but the
number of them declaring significant
incomes has not risen. Thus over
these three years the ratio of tax to
the GDP had changed very little.
The supporters of demonetization
argued that it would formalize the
unorganized sector. But the attempt
to formalize it through GST had
further damaged it. Even if
formalized, most of their incomes
are below taxable level. Though the demonetization
failed to achieve its stated
objectives, it had adversely impacted
the lives of 130 crore people. The
immediate effect was the shortage
of cash. 86 per cent of the currency
was of the denominations of
Rs.1000 and 500 and it was
withdrawn from circulation resulted
in unprecedented cash crunch.
Many small and micro businesses
shut down and people have lost
jobs. Traders have no cash to buy
agricultural produce and farmer’s
incomes fell sharply. Though banks
were flushed with cancelled notes,
banking operations came to a
standstill. The unorganized sector
constitutes 93 per cent of work force
and produces 45 per cent of GDP
was almost closed.
The situation had not improved
after the note shortage ended. A
year after demonetization about 22
contd. on page 22
contd from page 24 children
and
increasingly
commercialising the education
sector and for this purpose the
government run schools are being
deprived of all infrastructure, the
introduction of English as a medium
of instruction in the name demand
from the people and effecting the
social justice is in practice perpetuate
the same class and caste system.
Many schools are being closed
down in the name of rationalization.
Now the students of poorer sections
have to walk for miles to get
education. More than half of the
schools have no simple tool like
black boards while the government
talks eloquently about the e-classes
being broadcasted to schools. The
dropout rates have been on the rise
before reaching level of fifth class.
The government boasts of educating
the children in corporate schools by
paying tuition fee, but not a single private management had asked to
do so. The present exercise of
introducing English as medium of
instruction as well as heated
debates over it are not new and
every time they came up on the
political agenda it served the purpose
of diverting the people’s attention
from the real situation and anti-
people policies of the successive
governments which depriving the
children of poorer section of society
from getting educated.
Instead of falling into the trap
laid by the ruling classes, we have
to demand for providing free
education for all the children by the
government; stop experimenting
with the education system to likes
and dislikes of those in the power.
The medium of instruction should
be in the mother tongue up to 10the
class along with learning one more
national language.
23
had counter-posed English and
mother tongue sidelining the facts
and reality from discussion. That
either English or vernacular
languages are not epitomes of
knowledge and synonyms of
employment is well documented as
both the knowledge and
employment are dependent upon
factors that lie outside the realm of
language. Similarly in the case of
caste oppression and class
deprivation, whose eradication is
linked to the social revolution and
not to the language of learning.
The medium of instruction
debate is being conducted in such
a way to obfuscate the reality. While
the successive governments at the
centre and in states are moving
away from the responsibility of
providing education to all the
January - 2020