New Delhi: Chief economic adviser Arvind Subramanian said on Thursday that demonetisation of Rs 500 and Rs 1,000 notes should be seen as transfer of wealth to the government for the amount which doesn’t come back to banks for exchange.
“It is a wealth transfer and not wealth destruction move,” said Mr Subramanian. The CEA said that to the extent some unaccounted wealth will be affected. “But instead of seeing it as reduction in unaccounted wealth, it should be seen more as the transfer of that unaccounted wealth from the private sector to government and public sector,” he said.
On reports of people burning Rs 1,000 and old Rs 500 notes, revenue secretary Dr Hasmukh Adhia said that government has no problem in that as it will reduce the liability of the government.
