write an article about war on black money
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Article on War of Black Money in India
On November 8 Prime Minister Narendra Modi delivered a surprise reform to the nation: the government declared that the high-denomination 500 and 1000 rupee notes, which constituted more than 85% of currency outstanding in value, would be invalid as legal tender and could only be deposited into bank accounts until the end of the year.
This is a courageous and substantive economic reform that, despite the significant transition costs, has the potential to generate large future benefits.
India is largely a cash-driven economy, though a rapidly growing percentage of the population is becoming tech savvy. A shadow economy reliant on cash transactions and evading taxes, especially on high value transactions such as real estate purchases, gold, and intrinsically illegal activity, has taken deep and highly persistent root. Counterfeiting of Indian rupee notes and their subsequent use in funding of terrorist activities has also been an important concern.
While the pernicious effects of a large black economy and tax avoidance have been well recognised, no tangible policy action has been taken until now. Modi’s radical move to invalidate the high denomination notes, in which the black economy primarily transacts, is a daring step.
Economically and politically powerful constituencies with considerable stake in the shadow economy have been upended. Undertaking this reform has required the political courage to impose predictable transition costs on the economy to lay the foundation for sustained future benefits – the converse of what one normally expects from one’s politicians.
Some economists have advanced a criticism that this initiative is an abrogation of contract and trust in the currency. This is incorrect, as the policy allows for the exchange of old notes for new notes. Although the process is inconvenient, and subjects many households to hardships, it forces the cash from the black economy to be deposited into the banking system, potentially increasing transparency and expanding the tax base and revenues to the government from taxes and surcharges.
Explanation:
HOPE IT HELPED U DEAR FRND...
Black money is so much a part of our present day white economy; just like a brain tumour, you try to remove the tumour – you kill the patient. In this research paper, I’ve gone over the details regarding “black money” with a fine toothed comb.
The money accumulated in the hands of a very few people due to tax evasion, illegal business deals, crimes, etc., is called black money. Nearly 6 Lakh Crore Rupees has been the out flux in the year 2012. A “Special Investigation Team” has been set-up by the government to further investigate the matter. To this date, merely 97 names have been found and a notice has been sent to them.
The hope of getting all this money back to our nation, seems too grand to be true. It’s a fairytale spun by the adults to make peace with the idea of today’s grim economic system. But, if we do gain success in bringing this stashed away amount to the country, it could be used in a billion different ways to ensure our nation’s overall development. Apart from hiking our economy, it would boost the development process, ensure better medical aid, educational facilities and betterment of the Indian masses.
Further, the negative impacts of this out flux and how can this economic and social evil be curbed have 0been discussed. Also, the much hyped, 2G Spectrum Scam of 2008 has been critically analysed and how the government played a role in the scam. This very scam found it’s place on the 2nd number in the list of “Top Ten Abuses of Power”, by the TIME magazine, 2011.