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BLACK MONEY AND

ITS IMPLICATIONS
ON INDIAN
ECONOMY
RAHUL BARANWAL
09BSHYD0623
Section-L
Points to discuss
What is Black Money?
Causes of Black money
Implications on our economy
Steps government should take to curb black
money
What is black money?
Black money is the sum total of transactions
deliberately kept out of the books of accounts
by household and business in the economy.
India has about 1500 billion US dollars in Swiss
banks.
This amount is about 10 times larger than the
country’s foreign debt.
Once this large amount of black money and
property comes back to India, the entire foreign
debt can be repaid in 24 hours.
Causes of black money
High rates of taxation
Corrupt business practices
Political and bureaucratic corruption
Prohibited trades like liquor and drugs
Manipulation of public expenditure
Inadequacy of power to the tax authority
Ineffective enforcement of the tax law
Implications on our
economy
Black money generated every year in India
accounts for 20 % of GDP which will be around
160 billion US dollars.
Black money is like block money.
Creation of a Parallel Economy
Used now days in financing terrorist’s activities
and also put in “hawala” for illegal transactions
Steps govt. should take to
curb black money
Establishment of anti corruption bodies
Stringent rules to curb all forms of corruption
Enhance the transparency in tax transactions
Confiscation of personal rights of guilty
persons
Persons should also be debarred from holding
any elective offices, important posts including
directorships in companies, MP, MLA
International cooperation
Conclusion
It is, therefore, no exaggeration to say that
black-money is like a cancerous growth in the
country's economy and if not checked in time it
will surely to lead to its ruination. Only strong
will power of the govt. can wither the roots of
black money.
THANK
YOU.