black money
ECONOMIC MATTERS
Ill Effects of Black Money on Growth of Economy
V. Gopalan*
A
ccording to the data provided by the Swiss
Bank, India is topping the list with almost
$1500 billion of its black money deposited with them, followed by Russia $ 470 billion, UK $390 billion, Ukraine $100 billion and China with $96
Billion. It looks like India’s share is more than rest of the world combined, 13 times larger than the nation’s foreign debt and about 40% of GDP of India.
Every year this amount is increasing at a rapid speed.
It is a record embarrassing for any country to top the list for these reasons. The black money issue is haunting the government for quite some time and our
Supreme Court is also monitoring the steps taken by the government in putting an early end to this menace.
As pure water when polluted or contaminated loses its value, the economy of any country would be in jeopardy when contaminated with black money as it amounts to parallel economy not contributing in any way to the growth of the country.
It is not that only India is facing this problem. It is omnipresent. But what is worrying is that it is crossing the tolerance of even average citizens as they are witnessing the economy resisting growth as parallel economy is acting as a deterrent.
Bringing back the black money stashed in foreign banks is, of course, the primary task of the government as it is a matter of pride more than anything else.
Viewing from the angle of government exchequer, it is estimated that the Indian Government can run without levying any taxes for next about 3 decades! In a nation where more than 450 million live below the poverty line, bringing back the black money means so much. India has huge foreign debts and this would reverse the position from deficit to surplus.
India’s external debt, as at end March 2011, was placed at US$ 305.9 billion (17.3 per cent of GDP) recording an increase of US$ 44.9 billion or 17.2 per cent over the
Ill Effects of Black Money on Growth of Economy
V. Gopalan*
A
ccording to the data provided by the Swiss
Bank, India is topping the list with almost
$1500 billion of its black money deposited with them, followed by Russia $ 470 billion, UK $390 billion, Ukraine $100 billion and China with $96
Billion. It looks like India’s share is more than rest of the world combined, 13 times larger than the nation’s foreign debt and about 40% of GDP of India.
Every year this amount is increasing at a rapid speed.
It is a record embarrassing for any country to top the list for these reasons. The black money issue is haunting the government for quite some time and our
Supreme Court is also monitoring the steps taken by the government in putting an early end to this menace.
As pure water when polluted or contaminated loses its value, the economy of any country would be in jeopardy when contaminated with black money as it amounts to parallel economy not contributing in any way to the growth of the country.
It is not that only India is facing this problem. It is omnipresent. But what is worrying is that it is crossing the tolerance of even average citizens as they are witnessing the economy resisting growth as parallel economy is acting as a deterrent.
Bringing back the black money stashed in foreign banks is, of course, the primary task of the government as it is a matter of pride more than anything else.
Viewing from the angle of government exchequer, it is estimated that the Indian Government can run without levying any taxes for next about 3 decades! In a nation where more than 450 million live below the poverty line, bringing back the black money means so much. India has huge foreign debts and this would reverse the position from deficit to surplus.
India’s external debt, as at end March 2011, was placed at US$ 305.9 billion (17.3 per cent of GDP) recording an increase of US$ 44.9 billion or 17.2 per cent over the