by team toi there are early signs of widening of the tax base greater use of electronic payment channels as well as lower cash in the economy postdemonetization although the move to scrap old rs 500 and rs 1000 notes resulted in deceleration of economic activity with the informal sector facing the negative impact the economic survey said chief economic adviser arvind subramanian however admitted that it was too early to jump to conclusion and it would be advisable to watch the impact over the long run the second volume of the governments economic report card tabled in parliament on friday estimated that compared to the normal growth trajectory the cash in the system was 20 lower and the sudden move had also resulted in a shift to electronic and plastic payment tools on the assumption that the process of remonetisation is complete the survey pointed out that cash as a share of both gdp and money supply has decreased the cash to gdp ratio has declined by about 16 percentage points to 97 and as a proportion of money it has fallen by 5 percentage points to around 59 separating the impact of demonetisation on tax compliance the survey concluded that as many as 54 lakh tax payers or 1 of all individual taxpayers came on boardbut its impact in terms of tax collections was muted this is because the average income of the new taxpayer was rs 27 lakh an income level which represents a modest increase over the tax thres hold of rs 25 lakh the addition to the reported tax income was about rs 10600 crore