Question

what is the effect of black money on our economy ?

Answer 1

So when black money eats up a part of this tax, the government deficit increases. The government has to balance this deficit by increasing taxes, decreasing subsidies and borrowing. ... The infusion of unaccounted black money in the economy leads to higher inflation.

Answer 2

black money is reducing down the economy of a countries the major effect of black money is that becaose of it the rich get richer and the poor gets poorer