Demonetisation: Government will earn Rs 2-3 lakh crore in taxes, says Parrikar

He adds that the decision had also resulted in huge caches of black money being unearthed

Due to Prime Minister Narendra Modi's demonetisation move, the Central government will earn at least Rs 2 lakh crore to Rs 3 lakh crore in taxes, Defence Minister Manohar Parrikar said on Sunday.

"A minimum of Rs 2 lakh to Rs 3 lakh crore in taxes will be collected and once this tax comes to the government, it will help fulfil the needs of the common people and the poor. The Central government will utilise the money to give financial strength to these sections," Parrikar told a BJP party meeting at Quepem assembly constituency, in South Goa.

Parrikar also said that one of the key aims of the demonetisation move was to strengthen the Indian economy and that the decision had also resulted in huge caches of black money being unearthed.

"But the manner in which black money is coming out, even in trucks, is something else. Until now, Rs 700 to Rs 800 crore of black money was caught in currency notes. I do not have to say how many people who have deposited money in banks are going to be taxed," Parrikar said.

At the same time, Parrikar also conceded that some amount of hardship had been caused to people, especially in areas where there were fewer bank branches in operation.

"We can understand there was a hardship. There was some hardship in Goa, but outside Goa, where there are lesser banks, some people may have been troubled more," he said.