what is the effect of black money on our economy ?
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The increase in the amount of black money in India over a period of time lead to the perpetual growth of economic dualism which consists of Parallel economy (black money economy) operating side by side with the Official or Reported economy on the country.
The black economy represents not less than one fifth of the aggregate economic transactions. There is also interaction between the reported and unreported activities such that it is difficult to identify black money from the white money economy. Such a Parallel Economy will ruin the entire economic development
The black economy represents not less than one fifth of the aggregate economic transactions. There is also interaction between the reported and unreported activities such that it is difficult to identify black money from the white money economy. Such a Parallel Economy will ruin the entire economic development
Answered by
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1. Dual Economy
2. Under-estimation
3. Loss of Revenue to the Government
4. Undermining the Equity
5. Widening the Gap between the Rich and the Poor
6. Distortion of Production Pattern
7.Distribution of Scarce Resources,
8.Deterioration of General Moral 9.Standards of the Society,
10.Effects on Production.
2. Under-estimation
3. Loss of Revenue to the Government
4. Undermining the Equity
5. Widening the Gap between the Rich and the Poor
6. Distortion of Production Pattern
7.Distribution of Scarce Resources,
8.Deterioration of General Moral 9.Standards of the Society,
10.Effects on Production.
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