Had parallel black trade continued as before DM, GST mop-up could have failed miserably. That could have threatened states’ finances and the federal structure itself, even caused financial emergency. SBIs latest Ecowrap researches have brought out the truth about unpopular DM.
https://twitter.com/sgurumurthy/status/1465550566986170368
SBI Ecowrap says because of DM, Jan Dhan bank accounts rose by 5.7 cr; digital transitions from 182 per 10K in 2014 to 13,615 in 2020 — by 135 times; ATM network growth, that indicated cash drawls, has flattened; the savings in the Jan Dhan accounts has risen to Rs 1.40 lakh cr.
SBI Ecowrap says DM, GST, digital transactions reduced share of the informal economy from 54% in 2014 to 15-20% in 2020-21. Formalisation extended to 36 lakh jobs, says the Employee Provident Fund office, to 5.7 cr unorganised workers —most in backward states, says E-Shram portal
Cash use of Rs 1.2 lakh cr, agricultural credit of Rs 4.6 lakh cr, and petrol/diesel purchase of Rs 1 lakh cr have also been formalised through bank or digital transactions. The outcome of formalisation is higher GST collections. For October 2021, collection is Rs 1.30 lakh cr
Ecowrap (8.11.2021) also brings out the social benefits of the rise in Jan Dhan accounts and says it has reduced alcohol & tobacco consumption, wasteful spending and crime rates! Truth always emerges, but late.
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