A United Nations report has said that the Narendra Modi government’s demonetisation drive alone could not have stopped the black money flows in the new currency notes introduced by the Centre, reported PTI. The UN Economic and Social Survey of Asia and the Pacific 2017 report has suggested the use of supplementary measures to target undeclared wealth and assets, IANS reported on Tuesday. The document was published on May 1.

“Broader structural reforms, which could also contribute to enhanced transparency include: the implementation of a goods and services tax; voluntary disclosure of income scheme; and tracking of high-value transactions through taxpayer identification numbers,” the report said. “Other measures, such as reforming the real estate registration process to ensure transparency, are being discussed.”

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The survey also found that demonetisation had “greater and longer-lasting” impacts for lower-income individuals, households and businesses. “Rural incomes and consumption were affected owing to a decline in prices for agricultural products [although again, this was not reflected in the national accounts data which measure agriculture in terms of quantity],” it said. “In the medium-term, the currency initiative is expected to bring more economic activities into the formal sector and spur digitisation of financial transactions, helping to broaden the tax base and secure the fiscal space needed for public social and infrastructure expenditures.”

The government demonetised Rs 500 and Rs 1,000 notes on November 8 saying it would help tackle corruption, black money, and counterfeiting. The high-denomination notes accounted for more than 86% of the cash in circulation. While the country grappled with a major shortage of cash in the weeks that followed the demonetisation decision, the Centre took the opportunity to push for cashless transactions, encouraging people to take go digital with incentives such as discounts and lucky draws.