Wednesday 9 March 2011

Indian black Money

Under the reeling pressure of world the govt. of Switzerland has finally decided to disclose the names of persons holding illicit accounts in swiss banks only if government of countries ask for a favor from them personally, no wonder Indian Politicians are not at all interested in taking this matter seriously and bring back the black money stashed abroad and just dilly dallying with the matter because most of them are part of this whole parallel Indian black economy.
India tops the charts in nations having black money stashed abroad way ahead than Russia.


1) INDIA $1,456 BILLION 
2)RUSSIA $470 BILLION 
3)U.K. $390 BILLION 
4)UKRAINE $100 BILLION 
5)CHINA $96 BILLION 



This black money accounts for 40% of GDP of India and is  of size as much as 13 times larger than the total foreign debt on Indian Economy. So if all this money is being brought to India which is highly unlikely considering our politicians, India will be able to pay all its debt within 24 hours and would be left with such a hefty amount which if put on interest simply would provide money greater than the size of Annual Indian Budget and Indian government would be able to run the country for 30 years without any taxes being charged from public.


Alternatively, after paying the debt if this money is distributed amongst the 45 crores poor Indians living below the poverty line,each one of them would be getting Rs.1000/- each.And we say India is poor or a so called developing country.so,are we really poor.


There are number of countries as high as 70 in number which claim themselves to be tax heavens.The well-known tax havens are Switzerland/ Liechtenstein/Luxemburg/ Channel Islands etc.However Switzerland accounts for around 45% of the illegal money.


When asked from Professor R Vaidyanathan, Professor of Finance at the Indian Institute of Management, Bengaluru what are the ways by which our corrupt businessman,politicians, bureaucrats are able to amass such huge wealths he gave a idea of various methods prevailing which are twisted by these tax heavens to provide safe passage of black money abroad.


He said,there are several methods/reasons. Under invoicing/over invoicing of exports and imports and getting the balance stored abroad. Kickbacks from major defense/civilian contracts. Not bringing the earnings abroad. In the old days smuggling of gold and illegal money. Transactions done abroad and not reported here. Hawala funds. Funds earned by artists/ entertainment industry /sports people and stashed abroad. When you want to indulge in adharma, hundreds of ways are open! 


According to estimates more than $5 trillion have been shifted out of poorer countries to the West since the mid-1970.Every time laws are being tweaked or twisted to favor the rich and each one is able to grease his arms while it's the money earned by a common man after lot of turmoil.Its a high time now that only 1% of the world's population accounting for 57% wealth of the world.Until and unless we don't deal with situation with stern hand and force our government to bring all the culprits to justice,we will again be witnessing larger and larger scams and  black money accounts of Indians ballooning at the cost of the money of common man.


Though our govt. has started to feel the pressure and now with increasing pressure from Media and growing discontent in public, the govt. in order to save itself from criticism and show its serious has offered to bring in a amnesty schemeThe government has set up a panel to examine if an amnesty scheme should be unveiled to tackle black money, Lets see if this is again a futile attempt of our govt to curb the resentment.But,This has also become a matter of pride of nation and if nothing is done about this we will be making a mockery of our "India shinning" image.

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