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KALA DHAN: BLACK MONEY TAKE BIRTH AND GROW IN INDIA REASON ARE MANY FOR CREATION OF INDIAN BLACK MONEY

 
 
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KALA DHAN: BLACK MONEY TAKE BIRTH AND GROW IN INDIA REASON ARE MANY FOR CREATION OF INDIAN BLACK MONEY
by System Administrator - Friday, 8 July 2016, 11:01 PM
 

By : M.S.Yatnatti: Editor and Video Journalist Bangalore : Total computerization and ERP adoption and online government is first step towards making a Corruption-Free Government and Governance . One area where government should concentrate is bringing about systemic changes and automation, which would help in minimizing corruption if not eliminate it. For example computerization and automation of railway ticketing has virtually eliminated touts and reduced to a large extent corruption. But there are several other areas in railways where corruption is rampant like contracts, catering, procurement, scrap disposal and so on, which are not yet fully transparent. Smart cards in metros have virtually eliminated ticketless travel. Likewise digitalization, a pet subject of Modi, will minimize corruption in movement of files, tenders and so on as it would introduce transparency.

Reportedly Kala Dhan is created by the people who do not pay tax for their earnings and eventually it take birth in India and grow in India . So question of bringing it from outside does not arise and it is alleged that balk money exists in all part of the world. .In India, Black money refers to funds earned on the black market, on which income and other taxes have not been paid. The total amount of black money created in corruption deals is unlimited and quantum is unknown. Effective and credible deterrence is necessary in combination with reforms, transparency, simple processes, elimination of bureaucracy and discretionary regulations. Credible deterrence needs to be cost effective, claims the report. Such deterrence to black money can be achieved by information technology (integration of databases), integration of systems and compliance departments of the Indian government, direct tax administration, adding data mining capabilities, and improving prosecution processes. Time is ripe for political parties taking sincere approach on such issues. The irony is that the politicians and their crony capitalists have the bulk of the black money which they liberally use during the elections when the Election Commission and other bodies remain helpless. The elections in the country have down-graded to battle of money-muscle power.

Reportedly the money that is siphoned off in scams is no doubt large but the money made in petty corruption is not smaller though they are not stashed abroad. The money made through corruption starting from driving licence, MNREGS, PDS system, subsidies, public procurement, bribing lower staff to push files, paying money to taxmen for getting their returns scrutinized and securing genuine refunds, real estate registration, bribing the cops for traffic and other violations and so on hit hard the common man most and stunts economic development. The parallel economy, which could be as much as 50 per cent of GDP contributes greatly to inflation, delay in decision making and at times stalls development activities because some vested groups are not able to make money.

Reportedly Corruption in India is a major issue that adversely affects its economy. A study conducted by Transparency International in year 2005 found that more than 62% of Indians had firsthand experience of paying bribes or influence peddling to get jobs done in public offices successfully.In its study conducted in year 2008, Transparency International reports about 40% of Indians had firsthand experience of paying bribes or using a contact to get a job done in public office.In 2015, India was ranked 76th out of 175 countries in Transparency International's Corruption Perceptions Index, compared to its neighbors Bhutan (30th), Bangladesh (145th), Myanmar (156th), China (100th), Nepal (126th), Pakistan (126th) and Sri Lanka (85th). This is the second least corruption rank for India in the whole of South Asia.In 2013, India was ranked 94th out of 175 countries.In 2016, India was ranked 76th out of 168 countries in Transparency International's Corruption Perceptions Index