Depending on the volume of such monies, and the number of incidents through which such monies are generated and secreted away, it may very well reveal the degree of "softness of the State. The gap between the haves and the have-nots is widening every day.
The Indian economy stands badly shattered because of the huge amount of this trainted wealth lying in the coffers of the rich. Economists and financial analysts believe that a large percentage of black money being held in cash in India would now be brought into the mainstream economy through the banks, which would bolster economic growth over the long term.
Thus the entire social structure comes to be badly polluted. While this is set for the benefit of the people it is often misused to accumulate black money. The report  suggests that the Agreements be expanded to other countries as well to help with enforcement.
Conclusion While the Modi government has taken the step of demonitization to break this illegal wealth accumulation, there is still a lot that needs to be done in order to bring this problem down.
Another cause of black money, the report finds is the high transaction costs associated with compliance with the law. Black money can also be generated, through the sale of fixed assets and the sale of scrap as fixed assets can be under-priced and it is difficult to make a curate evaluation of scrap.
There are innumerable methods in which black money forms and daily several newer methods crop up.
The government must take certain steps to award the officials who are dedicated and sincere towards this task so as to motivate more and more officials to take this seriously.
Similar moves had been made earlier in pre-independence era in and also in by the first non-Congress government called Janata government.
Those possessing large properties try to apportion it in the name of their relatives, and thus evade wealth taxes.
The government must work on its price control policy as it is also one of the reasons behind the generation and accumulation of black money.
But this isn't "even a fraction" of their expenses. A lot of bribery goes on at different levels in the government as well as private sector and this also contributes to black money.
It also paves way for long term inflation. The two judge bench observed that the failure of the government to control the phenomenon of black money is an indication of weakness and softness of the government.
Ultimately black money is a social problem. Essay on Black Money in India for Children | Article | PDF December 24, by Study Mentor Leave a Comment Black money refers to unaccounted money that is untraceable and has no legitimate source though which it was earned.
Black money enters India at a rate of five times more than it leaves. Black money in India is % that of what India spends on Education.
India’s black money economy exceeds the GDP of Argentina and Thailand.
How Black Money affects the Economy. Corruption today, is one of the main reasons for the splurge of black money. Human beings have.
impacts of black money in india * Affecting the GDP Growth: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period. Government Measures to Control “Black Money” in India – Essay Article shared by Various attempts have been made to stop tax evasion but results have been futile in a large number of cases.
A former CBI Director of India has said that the total black money in India is around billion US dollars. Global Financial Integrity Report has mentioned that India lost around billion US Dollars in the time frame of Black-money results in the functioning of a parallel economy in the country.
The problem, therefore, needs immediate attention. Black money in economic terms means 'unrecorded gains'. In other words, it is income which has escaped taxation.Black money in india essay