Advertisement
Friday, Dec 03, 2021
Outlook.com
Outlook.com
Indian Economy

Never Said That I Wasn't Consulted. Made It Clear That We Didn't Think Demonetisation Was A Good Idea: Raghuram Rajan

he also said that the implementation of GST was not an 'unfixable' problem.

Never Said That I Wasn't Consulted. Made It Clear That We Didn't Think Demonetisation Was A Good Idea: Raghuram Rajan
| File Photo
Never Said That I Wasn't Consulted. Made It Clear That We Didn't Think Demonetisation Was A Good Idea: Raghuram Rajan
outlookindia.com
2018-04-12T13:02:12+05:30

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an "unfixable problem", former RBI governor Raghuram Rajan has said, reiterating that demonetisation was "not a well-planned, well thought-out" move.

With the Modi government bringing in ambitious reforms like GST and demonetisation, Rajan said it would be good if such measures were better implemented.

"On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it's (GST) not an unfixable problem. We can work on it. I wouldn't give up hope at this point on that," Rajan told an audience at the Harvard Kennedy School in Cambridge yesterday.

Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago's Booth School of Business, gave the 2018 Albert H Gordon Lecture on the topic 'Leverage, Financial Crises, and Policies to Raise Economic Growth'. He was asked about the "shoddy implementation" of big ticket reforms like GST and demonetisation in India.

On demonetisation, Rajan rejected the claim that the Reserve Bank of India had not been consulted by the government before it went on to declare 1,000 and 500-rupee currency notes as illegal tender in November 2016. He however reiterated that the move to cancel 87.5 per cent of the currency value was "not a good idea".

"I didn't ever say that I wasn't consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn't think it was a good idea," Rajan said.

He said demonetisation "was not a well-planned, well thought-out, useful exercise an

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Analysis | Mamata Banerjee Dismissing UPA Shows TMC Is On Mission To Rob Congress Of Its Allies

Analysis | Mamata Banerjee Dismissing UPA Shows TMC Is On Mission To Rob Congress Of Its Allies

On one hand, Mamata Banerjee's TMC has a rapport with parties like NCP and Shiv Sena, while also maintaining friendly relation with the Samajwadi Party in UP.

Mamata Banerjee In Mumbai: Growing NCP-Sena Ties Leave Congress In The Lurch

Mamata Banerjee In Mumbai: Growing NCP-Sena Ties Leave Congress In The Lurch

West Bengal chief minister Mamata Banerjee left out the Congress from a meeting between NCP chief Sharad Pawar and Shiv Sena leaders Aaditya Thackeray and Sanjay Raut in Mumbai.

Mumbai Test, Day 1 LIVE: Toss Delayed; Injuries Galore

Mumbai Test, Day 1 LIVE: Toss Delayed; Injuries Galore

New Zealand clinched a morale-boosting draw in the first Test in Kanpur. Can India win the two-match series in Mumbai?

Rajasthan Cabinet Reshuffle: How Congress Is Trying To Keep Warring Factions Happy

Rajasthan Cabinet Reshuffle: How Congress Is Trying To Keep Warring Factions Happy

Following the tussle between Sachin Pilot and chief minister Ashok Gehlot, Congress had dissolved all district and block committees after the former was removed as deputy chief minister and as the party president in July 2020.

Advertisement