Question

what is the effect of black money on our economy

Answer 1

heya!
here's your answer !
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THE CORRUTION'S TERMINOLOGY -
- by AnviGottlieb

❇ Introduction to corruption

◾we have been living in a generation where hostility towards people who believe in being corruption free in nearly common..the effect of this hostility is see everywhere -
in every era , in every field , in every way ....
in my opinion ,
this happens primarily because of three reasons existent in this weary world..

⚫the thirst of rising high on glory , not with the stamp of merit, rather going away from it

⚪the irresistible belief of forgetting the simple ideals , goals and objectives our ancestors set in front of us for development and preparation for the future

⚫the notion that in today's day.. by ignoring self-respect and honesty ... we can achieve the roots of anything good.. enough to get you going

◽in my opinion ,
these have been the primary causes of the existence of this dirty face of corruption prevelant in India .... more sadness lies in the fact that the future will be more ghastly than the present.. due to this devil..we have been experiencing a truly inquisitive and disturbed era.. where we need to at least touch the crossroads of dishonesty for being successful or for achieving a hint of speciality... even if it isn't achieved by merit ..

◾the various job opportunities in India,
the high posts , offices , degrees , estates are derived corruptly , if I'm not wrong in any context ... the people who stand bowing before their masters should have been Rulling over them.. because the high degrees are near to dishonesty , unfair means , and corruption..

This surely has Not adverse effect on our economy , draining resources , money , merit , posts and of course:- sincerity and honesty inside us in fast decreasing.
We can hope for a better Tomorrow once we've washed away the dirty stains of corruption.
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Also visit this site containing Answer by our honourable Upender Joshi sir :)
https://brainly.in/question/1679437

Thanks!
Hope this helps!

Answer 2

   Black money is the money (funds, currency, property, deposits) which are acquired through illegal means. An amount earned becomes black money if it is not declared to the government  through Income tax authorities or other tax authorities.  The first loss to the national economy is the tax on the earnings.

   Amount of black money in the country is not known to the government. Then it does not know how the economy is going to be in future. They cannot plan their budgets properly.  The income of government is reduced. So government has to increase taxes for every citizen and every property transaction. Then the prices go up. Government has to get funds for its budget by borrowing from banks, financial institutions and external banks like world bank. So government has to pay interest too on those loans. Government also will reduce the subsidies to poor people and halt welfare schemes.

   Finally inflation goes up. This situation gives an undue advantage to the black marketeers, hoarders and those who do scams and hawalas.

   In many countries government estimates black money (like 20% of white money) and takes it into its economy planning. Black money implies violation of fundamental rights of people, as some people become very rich and others become even poorer.

   Black money leads to black market. Availability of products to people becomes difficult. Demand and supply are monitored selfishly by private citizens and corporates.

   Black money increases corruption. In that case, corruption rules the government, public and private corporates.  black market will eclipse white open market. Products are taken away from white market and sold only through black market.  In India during the 1960 - 70s, the impact of black market was high.

   If percentage of black money in the economy is high, then stock markets go into the control of some powers. They can alter the stock exchange indices and either boost it or crash it. That affects the money in circulation.  Artificial crisis could be created.

   Thus it is in the best interest of citizen that black money is reduced to a minimum percentage of the domestic product to better control economy.