# Rs10,861 crore: The printing cost to maintain currency flow

This piece originally appeared on Livemint.com

Opportunity and endurance costs aside, the ongoing exercise to replace the stock of high-value currency denominations will cost the government about Rs11,000 crore in just printing costs. In 2015-16, the two high-value denominations, Rs500 and Rs1,000, made up 24.4% of currency in circulation by volume, but a steep 86.4% by value.

A guesstimate of how much it will cost the government to replace them with new paper can be worked out. In terms of printing, the government is taking a cost hit twice. One, it is effectively writing off the cost it incurred in printing the old lot: Rs5,932 crore. Two, it is incurring an additional cost in printing the new lot: Rs4,929 crore. Or, a total cost of printing of Rs10,861 crore.

# News in Numbers, Nov 10, 2016: He paid less, much less…

### < \$5

What is it? The amount US President-elect Donald Trump likely paid per vote, according to a Reuters analysis campaign finance records and voting data. This is on the assumption that the candidates spent all the money raised.

Why is it important? This is about half of what Democratic Party nominee Hillary Clinton spent per vote. Until mid-October, Trump’s campaign committee spent around \$238.9 million versus Clinton’s \$450.6 million. This works out to be around \$859,538 per an electoral vote for Trump and \$1.97 million per an electoral vote for Clinton (this doesn’t include spending between October 20 and until election day). Trump got about \$5 billion worth of free media coverage during the campaign, which is more than twice of what Clinton got, according to data analytics firm mediaQuant.

Tell me more: Interestingly, Trump also spent lesser than the campaigns of President Barack Obama (\$630.8 million) and Mitt Romney (\$360.7 million).

### Rs 2.5 lakh

What is it? The limit above which cash deposits made till December 30 in a bank account will be reported to the tax department by banks.

Why is it important? After having banned old currency denominations of Rs 500 and Rs 1,000 effective Tuesday midnight, the government had announced that one could deposit the old notes in the banks between November 10 and December 30. The authorities would then match the deposits with the income tax returns of the depositors and any mismatch would be treated as a case of tax evasion. The tax amount and a penalty of 200% of the tax payable would be levied. Jewelers are being given instructions to note the PAN numbers of their buyers and the government would take action against those who do not comply with this.

Tell me more: There is a format that has been created to collect information from the depositors and CCTV cameras would be installed to keep track of them. In addition, banks have also appointed nodal officers to deal with situations as and when they arise.

### 202 crore

What is it? The number of currency notes in Rs 100 denomination that would be fed into ATMs over the next few days.

Why is it important? As many as 12,000 cash vans would reportedly carry these notes and on their return trips, they would carry 1,300 notes of Rs 500 and Rs 1,000 denominations (approximately, worth Rs 8.5 lakh crore). This is probably the largest amount of cash that has ever hit the Indian roads at the same time. However, such a seamless operation is possible only if enough Rs 100 notes are supplied on time to banks, cash in transit operators and ATM service providers.

Tell me more: There is likely to be inconvenience for customers who wish to withdraw Rs 100 notes as most ATMs have cassettes (used to dispense cash) that can hold up to only 2,250 notes at a time. And, again, most of these are fitted with four cassettes, which means these ATMs can dispense about Rs 9 lakh when they are fully filled up.

### Rs 1 lakh crore

What is it? The amount the Karnataka government plans to invest in the development of irrigation projects.

Why is it important? The southern state has been facing its second consecutive drought year, which is also the sixth straight year of deficient rainfall. Karnataka, which is involved in river disputes with six states, has been seeking about 28% of its drought-related losses of Rs 12,125.79 crore this year in disaster relief. The number of farmer suicides has increased from 122 in 2014-15 to a record 1,461 in 2015-16, which the government officials attribute to crop losses, drought and pressure from private money lenders.

Tell me more: The new estimates of irrigation spending are double of the earlier outlay and the escalation in costs is due to delays in completion of existing projects and addition of new ones.

### 1.5%

What is it? The growth forecast for the euro zone in 2017, according to the European Commission.

Why is it important? This is lower from the 1.8% growth predicted by the body in May thanks to Britain’s exit from the European Union, political uncertainty and weak global trade. Investment is expected to rebound in 2018 and is forecast to grow by 3.3% this year, 3.1% in 2017 and 3.5% in 2018.

Tell me more: The UK economy is expected to grow 1.9% in 2016 and this is expected to fall to 1% in 2017, which is almost half of what the Commission had forecast in its previous estimates before the country voted to leave the European Union.