Finance Minister Arun Jaitley said on Thursday said a lot more money had come into the banking system after the government's November 8 demonetisation announcement, with an ability of banks to lend higher.
"The revenue figures that have been updated are significant. The direct tax figures of the Income Tax are now available with an increase of 14.4% with a net increase of 13.6% till December 19, 2016," said Arun Jaitley.
"The indirect tax figures till November 30 are updated with an increase in the central indirect taxes of 26.2%," said the minister while thanking the people of India who supported the demonetisation move.
"Life insurance, international tourism, petroleum consumption, flow into mutual funds has increased by 11%," said the Finance minister.
He further added that with the critical part of remonetisation already behind us, and there being no impact on the above areas, the situation in the coming weeks is surely going to get bigger and better.
"Large benefits of the demonetisation move are visible, what is in banks is an identifiable impact on tax collection already visible," added Jaitley.
Adding to this he said that RBI has large amount of currency available, out of which major part of currency has been replaced.
"The critics have been proved wrong. There could have been adverse impact of demonetisation on GDP for quarter or so, but it is not as bad as predicted," Jaitley said on the impact of demonetisation on the GDP.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.