PM Narendra Modi during his recent Mann Ki Baat Dated 27 th November 2016 spoke about How The demonetisation( of Old Currency Notes of Rs 500 and Rs 1000 ) campaign is yielding instant benefits for common man & women in India.

PM Modi on instant benefits of demonetisation

He said “The nation will reap these benefits in the days to come but some people have got benefits instantly. On asking how things were going on, I got to know about the impact in small towns. On the basis of reports received from about 45-50 cities, I gathered that demonetisation had encouraged people there to pay their arrears accumulated due to non-payment of dues earlier; many people were in the habit of not making tax payments such as water tax, electricity bills, etc., they just did not pay. Now all of us know very well that the poor people always like to clear their dues 2-3 days in advance.

It is the well-off people, who do not pay their taxes and bills as they have higher connections and know that nobody is going to ask or do anything against them. Thus there are big arrears of payments, which remain pending.

All municipalities receive hardly 50% of their tax revenues. But, this time after the decision taken on the 8th instant, people rushed to deposit their old currency notes. 47 urban institutions had received about 3 to 3.5 thousand crore rupees in taxes last year. You will be surprised and also happy to know that during this one week, these institutions received 13 thousand crore rupees.

Imagine the difference – from 3 to 3.5 thousand crores to 13 thousand crores. And, that too with the self initiative of those making payments. Now that these municipalities have received 4 times the money, it is quite natural that poor localities and slums will get better drainage facilities, better water supply and better Aanganbari system.

Many such examples are coming to light where direct benefits of this demonetisation can clearly be seen.