Dear Aspirants, Now our SSC ADDA is Topper Ka Adda. We have started an initiative where Previous Years SSC toppers will be Guiding and training you through various platforms for the upcoming SSC CGL 2017 Exam. It’s a great opportunity for all of you to prepare for the exam and be trained by the best of the minds of India.
Since the exams will be conducted on 28th January 2018 (SSC MTS Tier-II) and 31st March, 2018 (SSC CGL Tier-III), there are three components of descriptive paper, Precis Writing, Letter/Application writing and Essay writing. Today, in this series we will post an Essay written by SSC TOPPER Mr. Narendra Kumar. Read the below given Essay and try to write in your language. Study and Practice well.
Topic: Demonetization: To deify or Demonise
Demonetization is the act of stripping a currency unit of its status as legal tender. On November 8, 2016 the government announced a historic measure to demonetize the two largest denomination notes Rs. 500 and Rs. 1000, which constitute 86% of the total cash in circulation.
The aim of the action was fourfold: to curb corruption: counterfeiting, the use of high denomination notes for terrorist activities; and especially the accumulation of “black money”, generated by income that has not been declared to the tax authorities.
To fulfill the vision, the government announced that notes of Rs. 500 and Rs. 1000 were to be deposited in the banks by December 30, 2016, while restrictions were placed on cash withdrawals.
Some of the benefits of this reform are tax on black money, crowding out counterfeit notes, higher tax compliance due to formal economy etc. In addition to these immediate benefits, these are some long term benefits like making Indian economy a less-cash or cash-lite economy. Notwithstanding its long term potential, demonetization had some short term costs too, for example aggregate demand shock aggregate supply shock liquidity shock etc.
Moving forward, the emphasis must be on maximizing demonetization is benefits while minimizing its costs. First step to be taken immediately is to replenish the cash shortage. In medium term, the impetus provided to digitization must continue. For higher tax compliance taxation regime must be simple and predictable like GST.
Hence, if we compare the merits with demerits, it will be safe to conclude that former outweighs the latter.