Monday, 25 April 2011
Black Money 100 Times More in India Than In Swiss Banks
We see the frequent media report about the huge amount of Indian black money around $1500 billions or roughly 70,00,000 (seventy lakh) crore rupees hidden in Swiss Banks stashed since the fast 60 years. Prosecuting those culprits and bringing the money back to the country can greatly alleviate the poverty in India. However the media on the other hand seems to conveniently forget to inform to the public that there can be 100 times more that amount of black money hidden inside the country itself, taking it out can completely get rid of poverty in India.
Let us undertake a rough estimate to understand the above matter. Indian population today estimated to be around 120 corers. Consider the top 5% of it extremely rich (many having those Swiss bank accounts), 15% affluent rich, 20% well to do upper or middle class and the rest 60% consisting of lower middle and the poor.
Now take only the 15% affluent rich consisting of roughly 4 cores households. In today’s conservative property value estimates one can safely assume that in general each of these AFFLUENTLY RICH households owning a total assets value worth Rs. 15 cores in average in the form of properties, valuables, jewelry gold, investment stocks, safe lockers, bank deposits and cash in hand. However most of them (if not all) in general submit or declare only half that amount say 8 crores in their tax returns and conceal (hide) the rest 7 crores (the amount could be other way round. Look at all the Income Tax raid reports in India) to evade the Taxes, which in fact becomes the illegal or the black money. Now if you multiply the 4crores of households each having Rs. 7 cores black money its total amount comes to 20,0000000(twenty crore) Crores, which means some 36 times more black money with these affluent rich class alone in the country than in the Swiss banks. Now if you add the black money in the hands of the 5% extremely rich and the 20% well to do upper and middle class as equally the same amount then the figure comes 100 times more. One can dispute the figure saying it can be 1000 times more, other may say it may only 10 times some other may point it somewhere between. However one can safely conclude that the black money inside India many times more than in the Swiss banks.
Today, it is very much possible for the Governments all over the world to completely prevent such black money (tax evasion) happening. The advancement in the Information (electronic, digital, bio-tech) Technology (IT)offers the solution. BAN the CASH (except a given small amount) replace it with Bio-metric Electronic Money (NFC like). The Biometric Identify in the economic (financial) system will make it impossible to anyone to hide and keep their money valuable or the properties in bogus fictitious or benami names so extremely difficult to evade the taxes thereby the black money along with all other illicit money transactions, corruptions can be mostly eliminated.
I have explained it more in my paper titled “IT To Root-Out Corruption”. One can access it from my blog < i-opinion-about.blogspot.com>.
PS. Apologies for my poor language skills, writers having good command skills over the language can explain all this far better than me.
My Other Blog-sites:
IT To Root-out Corruption
Drunk Driving DUI Root Cause
Alcoholics Cure well