Budget focuses on demonetisation; Jaitley calls it bold, decisive measure

Jaitley assured that effects of demonetisation are not expected to spill over to the next year

The Union Budget 2017-18 laid major emphasis on the demonetisation with Finance Minister Arun Jaitley calling it a bold and decisive measure.

Jaitley said that the government took two tectonic policy initiatives - passage of Goods and Service Tax  Bill and demonetisation.

"Demonetisation was a continuation of series of measures taken by the government in two years. It is bold and decisive measure."

On November 8, 2016 in a surprise announcement Prime Minister Narendra Modi said that the old Rs 500 and 1,000 notes will no longer cease to be a legal tender.

Highlighting the positive impact of demonetisation, Jaitley said, "Demonetisation will help in transfer of resources from tax evaders to government. Only transient impact on economy due to demonetisation; there will be long term benefit include higher GDP growth and tax revenue."

Jaitley also assured that the effects of demonetisation are not expected to spill over to the next year and the pace of remonetisation has picked up.