Defence Ministry approves 1st phase of reforms in Indian Army: Arun Jaitley

Sep 01, 2017, 12:34
Defence Ministry approves 1st phase of reforms in Indian Army: Arun Jaitley

DB Shekatkar had given 99 recommendations to the central government in its report on December 2016, out of which the Union Ministry of Defence has chose to implement 65 suggestions, according to a statement issued by the high-powered Cabinet Committee on Security (CCS).

The reform, aimed at altering the "tooth to tail" ratio, would be implemented by 2019, said Defence Minister Arun Jaitley while addressing the press today. "The quantum of cash into the system must come down", he said.

"It's nobody's case that black money has been completely eliminated after demonetisation", said Jaitley.

Foreign Direct Investments (FDI): "Global economy is picking up faster than expected", Jaitley said.

Even GST collection has surpassed the estimates, he stated. "The fact that money got deposited in banks doesn't make it legitimate money".

The finance minister further said that finally the government's massive currency culling exercise was able to increase the revenue of Centre and states', which will increase the government's ability to spend, especially on development projects increases.

"People with inadequate understanding of how to tackle black money linked note ban with money returned to system", said Jaitley, adding "deposits in banks don't legitimise" black money.

Critics, however, said the residual impact of demonetization was continuing to impact growth.

The demonetisation of the old Rs 500 and Rs 1000 currency notes which was announced suddenly in November 2016 resulted in a severe cash crunch, causing chaos through the nation. More than 9.27 lakh responses were received giving information on 13.33 lakh accounts involving cash deposits of around Rs.2.89 lakh crore.

- The Operation Clean money has since moved into the next phase that includes enforcement actions in high risk cases, taxpayer engagement through a dedicated website in medium risk cases and close monitoring in low risk cases.

The Income Tax Department conducted searches on various entities, leading to seizure of cash and admission of undisclosed income.

According to data released on Thursday, India's GDP growth rate slipped to 5.7 per cent in April-June quarter in 2017.

The Indian economy had grown by 7.1 per cent in 2016-2017. The investigation is going on, the statement said. The government, he said, has already put in Rs 70,000 crore in banks as capital over a four year period and is "open" to putting in more money.

Around 163 companies which were listed on the exchange platforms were suspended from trading, pending submission of proof documents.