Skip to main content

Impact of black money on Indian economy:

 Impact of black money on Indian economy:

Preventing and controlling the circulation of illicit funds is a precondition for the establishment of a fair, transparent, and efficient economy. Because the economy is the backbone of a country, the presence of black money will cripple the economy, causing the country to fall into a state of stagnation. It is an obstacle to the development of the economy and will almost certainly bring it to a grinding halt. The existence of black money, also known as the parallel economy, has caused major disruptions in the country's economic planning. And the flow of this water is having a negative impact on India's entire economic system. Some of the most significant are as follows:

Poverty on a large scale:

The growth of the underground economy in our country has had a significant impact on the distribution of wealth and income in our country. The general public is harmed in a variety of ways by the government. Tax evaders are preventing the money from reaching those who deserve it. If the Indian government is successful in recovering and utilising all of the black money stashed away in tax havens, it will be able to pay off all of the country's outstanding liabilities while still having money left over for investment and development.


Inflation that is uncontrollable: When black money is allowed to circulate in the market, the amount of money in the system exceeds the amount of money that the government anticipates. As a result, the prices of commodities rise to levels that are significantly higher than normal. Having more money and offering more money on specific items is the direct result of more people having more money. Even if the government attempts to control the credit flow in the market by implementing the necessary measures, the amount of black money in circulation causes the process to be disrupted, resulting in some form of economic pressure.


Economic loss to the state exchequer: The Indian government has failed to collect the estimated amount of tax439 from the people on numerous occasions, and the underground economy that is fueled by black money must be given credit for this failure on many occasions. A report has been submitted to the Indian Finance Ministry, which depicts the spread of black money in various sectors such as real estate, mining, telecommunications, and so on. The study, which was overseen by NIPFP chief P.Kavita Rao, explains how illicit wealth is likely to exceed 10% of GDP in the near future.


The price of surrounding land tends to rise in tandem with the price of the piece of land being sought after, resulting in an artificially inflated price for the entire area when people with deep pockets are willing to pay more for a piece of land. As a general rule, people involved in the black money market are always willing to pay more for land because it allows them to convert their coloured money into legal currency more quickly.


Underestimation of GDP: Because a large portion of India's income is diverted to the unaccounted sector, the country's GDP has been underestimated. As a result, the parallel economy in the country has continued to grow and prosper.
Labels:

Comments

Post a Comment

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B
Post a Comment
Read more

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske
2 comments
Read more

60 Minute Marriage Counselling Session On Phone

Description A 60 minute phone call with an expert Marriage\Relationship Counselor to discuss your marriage\relationship related issues. Counselling aims to resolve issues and improve communication in a relationship. Couples’ counselling works with both people in the relationship, however sessions can start with one individual, working towards the involvement of the other partner. What's Included a) 60 minute phone call with the counselor where you can discuss all your issues and seek guidance. What's Not Included a) Counselling session via meeting
5 comments
Read more