Demonetisation's hardships will remain for one or two quarters, says Jaitley

Last Updated: Thu, Dec 01, 2016 17:41 hrs
India's Finance Minister Jaitley gestures as he addresses a gathering during a seminar in Ahmedabad

Bhubaneshwar: Finance Minister Arun Jaitley on Thursday said the hardships faced by people over demonetisation will remain for one or two quarters but its effect on the economy will be seen in long term.

"The effect of demonetisation would remain for one or two quarters but its effect on economy would be seen in long term," Jaitley told reporters on the sidelines of the Made in Odisha Conclave.

He thanked Odisha Chief Minister Naveen Patnaik for backing the demonetisation and the Goods and Services Tax (GST).

Elaborating the effects of the two major decisions, he said: "I believe both decisions would prove a game changer. GST will ensure higher taxation as far as Centre is concerned, state is concerned... It's a more efficient system. It plugs leakages and it will certainly help state like Odisha.

"While the currency change are concerned, once the remonetisation process is completed and the economy gets back to full speed, the size of the GDP will expand.

"Money coming to banks will be used more fruitfully for the benefit of the economy and together these two things have the potential to exaggerate what the Centre and the state are doing."

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