Sankalpa New - MS Ramaiah Institute of Management

Mystery Behind BlackstVidisha Pandey, Shweta Mishra, PGDM (Auto.) 1 YearBlack Money is currently a highlightedissue because of the indefinite hungerstrike of yoga guru Baba Ramdev againstcorruption in black money after thegovernment failed in its last ditch effortto talk him out of the protest. BlackMoney is income earned surreptitiouslyor illegally,usually in cash ,and notreported to the government so as to avoidpaying taxes on it. Sources revealed that$1.4 trillion India's black money isdeposited in the Swiss Bank. Accordingto data provided by Swiss Bank, Indiahas more black money than rest of theworld combined. India tops the list withalmost $1500 billion black money inS w i s s B a n k f o l l o w e d b yRussia,U.K.,Ukraine,etc........and outside the country.During the interaction with the group ofprint media journalists, the P.M. said-"BLACK MONEY WAS A REALITYEVEN AS HE DOUBTED THE SIZEOF THE BLACK MONEY BEINGQUOTED". Various measures shouldbe taken to curb black money such as -methods to prevent generation of blackmoney should be worked out. Secondly,the black money that is kept overseasshould be brought back.Lokayukta Justice Santosh N Hedge said"if we can bring back black moneystacked in tax havens abroad and putthem in a bank in lieu of interest, we canhave budgets without fresh taxes ".In May this year, the governmentconstituted a committee headed by theCBDT Chairman for strenghtheningLegislation to curb the generation ofblack money. In March this year, thegovernment had signed agreements with3 leading think-tanks NCAER, NIFMand NIPFP to conduct study onunaccounted income generated insideIf black money is obtained from SwissBank it can boost both aggregate demandand aggregate supply. Money obtainedfrom Swiss Bank's thus would appear tobe a sound source of financingdevelopment expenditure.M S Ramaiah Institute of ManagementMail: sankalpa.editor@msrim.orgPh:‐ 080‐23608769/6909/8230, Fax 080‐23601974