Five sources of black-money and corruption

Five sources
of black-money and
corruption

1. Large denominations and many de-
nominations of the currency
2. Illegal Mining
3. Leakages from development programs
4. Bribery
5. Tax Evasion

Large denominations and many
denominations of the currency
At present, the country has ten lakh crore
rupees of money-in-circulation and this
money is largely in higher denominations.
World over, in any economy only a figure
of 2-3 percent of money circulation is con-
sidered to be ideal one. Based on this per-
centage, the size of our economy should be
about 300-400 lakh crore rupees and the
size of our economy is, in fact, that big.
This can not be denied. This unaccounted
black money has been accumulated inside
and outside the country. There are two
kinds of money. First is the money earned
as a result of hard-work. The second kind
is printed money. These 400 lakh crore ru-
pees, which our corrupt people have looted,
have not been printed by our central bank.
Rather, this money has been accumulated by
the abusing the sheer hard-work of 120 crore
people and extorting natural resources of the
country. This is the real money of the country.
So, there is no chance of rising inflation by
bringing in black-money. There won’t be any
solution if the Reserve Bank of India happens
to print money. Rater this would devalue our
currency.
Illegal Mining
There are about 200 licenses offered to le-
gally mine our natural resources. And not all
the license-holders have started mining activ-
ity. Rather, there are about 1 lakh illegal min-
ers. This is the biggest source of black-money.
We have natural minerals of 89 kinds valued
at about 10,000 lakh crore rupees. If the reign
of corruption continues, then looting of natural
resources would not stop.
Leakages from development pro-
grams
There have been high incidences of serious
proportion of leakages from developmental
schemes by fraudulent practices and forging
official papers.
Bribery
Another way of accumulating money is by
abusing constitutional positions and their au-
thority.
Tax Evasion
Income tax is evaded by not declaring income
in the country and transferring this money to
overseas banks. Earlier, black-money had to
be deposited abroad but now these banks from
Italy and Switzerland have been called here to
do the same.