Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/demonetisation-is-data-being-cherry-picked-to-show-note-ban-delivered-rupa-subramanya-4685915.html"/> LATEST NEWS UPDATES | Demonetisation: Is data being cherry-picked to show note ban delivered? -Rupa Subramanya | Im4change.org
Resource centre on India's rural distress
 
 

Demonetisation: Is data being cherry-picked to show note ban delivered? -Rupa Subramanya

-Financial Express

Has demonetisation led to a big increase in the number of people filing taxes and in tax revenue collected?

Has demonetisation led to a big increase in the number of people filing taxes and in tax revenue collected? In other words, have the tax base and tax revenue increased substantially due to demonetisation?

Minister of finance Arun Jaitley, and assorted defenders of the government, do make these claims. Writing in this newspaper, economist Surjit Bhalla, a part-time member of the prime minister’s economic advisory council, defended demonetisation exactly on these grounds (bit.ly/2Pr07az). In an interview, Bhalla claimed “tax payments went up by an enormous amount”, due to demonetisation (bit.ly/2qHOnS1).

Do the facts support these claims? Let’s start with tax buoyancy. In macroeconomics, this is the elasticity of tax revenues with respect to nominal GDP, or in other words, the percentage change in tax revenues divided by the percentage change in nominal GDP. Greater tax compliance, caused say, by demonetisation, should show up as higher tax buoyancy.

In the two financial years preceding demonetisation, direct tax buoyancy was 0.8 and 0.7 respectively. In 2016-17, the year of demonetisation, this increased to 1.3, and it was 1.4 in 2017-18, the last full financial year for which we have data. Sounds impressive, right? Yes, if we cherry-pick dates to suit our agenda, as defenders of demonetisation often do.

Please click here to read more.