Late declaration of PMGKY-scheme resulted in low declaration of black money


It refers to news about just rupees 4900 crore having been disclosed by a small 21,000 members from public under the Pradhan Mantri Garib Kalyan Yojna(PMGKY), under the Voluntary Disclosure Scheme announced several days after sudden announcement regarding demonetization of old currency in denominations of rupees 500 and 1000.

Scheme would have been a super grand success if Prime Minister would have himself announced the scheme in his speech of 08,.11.2016 when he surprised nation by announcing demonetization of currency. Then people would have funded the scheme with unaccounted currency fetching a consolidated 49.9 percent as tax, surcharge and penalty rather than risking by exchanging old currency at commissions ranging about 40-percent above.

Demonetization was indeed a bold step, but lack of bureaucratic-coordination and poor pre-planning resulted in making it almost a flop. There would not have been currency-crunch if old currency would have been allowed at outlets of essential services like Mother-Dairy booths, Kendriya-Bhandaar and petrol-pumps. Negligible cases of misuse could make demonetization a smooth affair. Allowing too many Identity Proofs for note-exchange resulted in persons queueing up repeatedly by taking money to exchange notes. If complete polling can be done in a few hours of a single day, there was no reason to witness unending long day-night queues for weeks at a time when number of bank-branches was much higher than polling-booths.

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