Bc Presentation

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.