Essay No. 01
Of the total supply of money in circulation, black money accounts for a sizable percentage. What is this ‘black money’? Black money means unaccounted money, concealed income and undisclosed wealth. This money is not in any way helpful to the society. It deprives the nation of the funds required for its development.
Richer classes of people spend more from this black money and they are prepared to pay any price for any commodity Black money increases corruption and intensifies inflation. Thus black money causes rise in prices and increases the misery of the poor people. So the rich grow richer while the poor becomes poorer.
The people who have black money are a danger to the society. They have spread violence, corruption among Government officials, law enforcing authorities, politicians and unemployed youth in the country.
Black money symbolises something which violates moral and social and legal norms. Its effect on the economic set up is dangerous. It has an evil effect on the moral fiber of the society, integrity is placed under a discount and vulgar display of wealth is at a premium.
The nation is deprived of more than Rs. 1000 crores every year by way of tax evasion on account of black money.
Concentration of wealth in the hands of a few people is also a cause for black money. The evils of black money can be checked by bringing monopolistic trends under control. More industries shall be brought under state control. Small producers shall be encouraged by the grant of industrial licenses, import quotas of raw materials and loans from banks.
Smuggling is another cause of black money. Secret transactions in respect of properties and other assets, large stale leakage of foreign exchange along with the-smuggling of gold and other luxury goods add to black money.
To control and ultimately eradicate the evil of black money, the Government must fight with an iron glove. Stern measures should be taken against tax evaders, smugglers, speculators and black marketeers. When they caught and found guilty, they shall be debarred from getting any license or import quota or any other trade concession from the Government. Electoral reforms should be carried out to minimize the role of big money in all elections. Elimination of corruption and became transactions are very important.
In some cases, black money is actually, money not paid to the Government by way of income and other taxes. Higher rates of taxation on higher expenditure will curb extravagance.
Anti-smuggling drive has already been undertaken. Severe action is being contemplated against black marketers. Our economic system is to be overhauled in-such a way as to leave no room for the operation of black money.
Essay No. 02
Black money is the unaccounted wealth which is earned by an individual or firms, bypassing the laws of the country. The economy generated by black money is so powerful that it can clear all the debts of the Indian government and could also place India at centre of the international business on account of its financial strength.
Black money is created in many ways. At times this black money is given as gift or in the form of bribery which is illegal but since, these escape government notice these keep creating more and more black money in society.
Then thirdly, the practice of underbilling or overbilling in business leads to the generation of black money. For example the overall value of a property is shown very low in the documents but in reality and in the actual money transaction it has a very high value. The major inhibiting factor in the process of national economic development is black money.
Black money has made rich people richer and poor people poorer and its consequences are such that the masses have to suffer. The businessmen, individuals, black marketeers etc. are nowadays being targeted by agencies like Customs and Excise department, the Vigilance Department, the Enforcement Directorate etc. in their drive to curb the black money menace.
Only honest financial practices can end the phenomena of black money and it needs both individual initiative and government action.