Demonetisation effect: civic bodies across the nation receive a windfall
New Delhi: The likes of Delhi chief minister Arvind Kejriwal may not like it, but devalidation of high-denomination currency notes has led to higher collection of revenue by civic bodies, in addition to other utilities such as electricity.
Figures of revenue collection made in November, after demonetisation, officially released now, indicate that some states in the country collected three to five times more revenue during the month. Number one position in this regard is held by Haryana.
The state received a windfall, the collection rising to Rs 27 crores from a meagre Rs four crores, the previous month. In percentage term the spurt is more than 500 per cent.
Some other states are not much behind. For instance, the new state of Telengana had revenue jump from Rs 34 crores to Rs 196 crores.
Other states which are rejoicing over the note-ban include Gujarat which has the highest number of municipal bodies-- 31.
The other western state of Maharashtra has done almost equally well. Collection by that state improved by over 400 per cent in that period. In terms of money, the collection was of the order of Rs 1500 crores.
A few states including Goa and Himachal Pradesh, however, registered a fall. No reason has been given for the dip. It may be for other reasons than demonetisation.
The other utilities like electricity had reaped a rich harvest ahead of civic bodies in the month in the wake of note cancellation. Some states like Uttar Pradesh had more than 200 per cent increase in revenue collection. One of the reasons was permission to pay the old dues in banned notes of Rs 500 and Rs 1000.
Meanwhile, the government has stepped up its drive against hoarders and money launderers. Bank branches and officials who have helped them are already under the lens. While some of bank managements have themselves taken action, others are waiting for the outcome of the inquiry being made by the government.
The investigation will take a long time as the number of accounts used by launderers is quite high. A new route used for converting black into white was cooperative banks controlled mainly by politicians of all hues. They have also come under the government's radar.