When Narendra Modi had announced the discontinuation of the old Rs. 500 & 1000 notes, followed by the implementation of GST, the common man’s back doubled under the weight. But it could have been avoided, says Geetha Gopinath.
Though the implementation of the goods and services tax (GST) has caused disruptions, people will get the benefits of the tax regime soon, said Kerala Chief Minister’s financial advisor Gita Gopinath.
The GST could have been implemented in a better way if there was no note-ban. Since both the measures came one after another, there were lapses in their implementation.
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The central government had assumed that all the high-value currencies that were in circulation won’t return. But what happened was the perfect opposite.
However, demonetization has helped in sending a strong message that the government is taking strict measures against black money and corruption, she said.
She also opined that the hasty implementation of GST has resulted in generating immense confusion.
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Gita didn’t respond to queries on the financial crisis facing Kerala. She added that more women should attend the Loka Kerala Sabha.
Gita Gopinath is a professor at the economics department of Harvard University and the Financial advisor to the Chief Minister of Kerala. She has done work on price setting across currencies and the sovereign debt defaults in Europe.
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