Demonetisation has hit state exchequer: Minister

Bengaluru: Karnataka Industries Minister R V Deshpande on Wednesday said the demonetisation has affected the state exchequer and the registrations had come to a standstill.

The Minister, who was intervening during a debate on the motion of thanks to the Governor for his address in the Assembly, however, did not explain the extent of the impact and said Chief Minister during his budget speech will dwell on it.

Deshpande’s statement came as BJP objected to Congress MLA Rajanna speaking about the demonetisation and its effects on cooperative societies and common man, and union government’s failures to tackle the black money as promised.

BJP’s objection was that the MLA was trying to deviate from the Governor’s address and put the blame on the Central government to hide state government’s failures.

Stating that demonetisation was done by the central government, BJP members asked the Speaker not to allow the issue to be deviated as no one from the central government was in the House to respond.

Rising in defence of Rajanna, Deshpande said the MLA has every right to speak on the issue as it has impact on the state.

“It has affected the state exchequer…Registrations have come to a standstill…” he said.

“Demonetisation, if it eradicates black money we will welcome it, but poor and farmers have been affected in a big way”, he added.

As the Minister made this statement, JD(S) leader YSV Datta questioned as to why the government did not make a mention regarding the impact of demonetisation in the Governor’s address.

Karnataka budget is expected to be presented in the first half of March.

According to government sources, due to the impact of demonetisation, the state’s annual revenue loss could be to the tune of over Rs 3,000 crore.