Question

How black money is affecting our economy?

Answer 1

Explanation:

Black money is a socioeconomic evil. The existence of rapidly growing black money in our economy has grave and disastrous consequences. The major effects of black money are discussed below:

Growth of economic dualism,

Under-estimation of the true size of the economy,

Tax evasion, thereby loss of revenue to Government,

Undermining equity,

Widening Gap between the Rich and Poor,

Lavish Consumption Spending,

Distortion of Production Pattern,

Distribution of Scarce Resources,

Deterioration of General Moral Standards of the Society,

Effects on Production.