Combating Corruption Battling Black money

“Corruption and black money is the part of our greed, a diseases like cancer – try to
remove it or you kill the patient”

INTRODUCTION

Corruption and the black money is the major problem facing many countries today. It is what
makes countries remain behind and leave their citizens suffering in the substandard living
standards. Citizens are struggling in poverty all because of corruption and black money.
India among other countries suffers all because of it.
Today, corruption and black money has taken the role of a lubricant which makes the
government machineries function. It is lamentable that even after 64 years of Independence
corruption still prevails so rampantly and ubiquitously in our country that it has proved to be
the biggest obstacle on the way towards development.
For this we need a very scientific and holistic approach in our struggle against corruption.
Together, we can combat it. The Indian government is investing a lot so as to bring to an end
this menace that has robbed it its growth.
8th November, 2016, will go down in history as a golden lettered day for India. On this day,
Prime Minister Narendra Modi announced demonetisation, a revolutionary step in fighting
the menace of black money and corruption. In an unprecedented display of Jan Bhagidari,
125 crore Indians stood shoulder to shoulder with the Prime Minister in this fight for India’s
bright future.

MEANING OF CORRUPTION AND BLACK MONEY

Corruption is dishonest behaviour which include giving or accepting bribes or inappropriate

gifts, double dealing, under-the-table transactions, manipulating elections, laundering money
and defrauding investors. One example of corruption in the world of finance would be
an investment manager who is actually running a Ponzi scheme.

Black money is money which is earned through any illegal activity controlled by country
regulations. Black money proceeds are usually received in cash from underground economic
activity and, as such, are not taxed.
 TYPES OF CORRUPTION AND BLACK MONEY:

 Grand Corruption And black money: A corrupt political elite can change either the
national policies or the implementation of national policies to serve its own interests at some
cost to the populace; public spending etc..
 Bureaucratic Corruption: In its most common form, usually known as petty corruption, the
public may be required to bribe bureaucrats either to receive a service to which they are
entitled or to speed up a bureaucratic procedure.
 Legislative Corruption: Legislators can be bribed by interest groups to enact legislation that
can change the economic rents associated with assets. This type of corruption would include
"vote-buying".
 High-level corruption: Such types of corruption can be seen as kick back paid to defence
ministers in exchange for his or her country's purchase of expensive jet fighter aircrafts.
 Low-level corruption: This type of corruption includes bribes paid to civil servant for
issuing a driver's license etc.

CAUSES OF CORRUPTION AND BLACK MONEY

Corruption and black money is wide spread in developing countries, not because their people
are different from people elsewhere but because conditions are ripe for it, such as :

 Motivation to earn income is extremely strong due to:a) Poverty. b) Low salaries (wages).
c) High risks of all kinds (illness, accidents and unemployment).
 Weak legislative and judicial systems and lack of transparency.
 Law and principles of ethics are poorly developed.
 The main cause of black-money is unrealistically high rates of taxes which strain human
nature.
 Tax-laws in country are so complicated that a layman fails to understand it. Even honest
assesses are unable to file correct returns. This encourages people to evade tax.
 Another cause of black-money is numerous controls, licenses and other governmental
regulations .
 It also arises from political activities such as elections where candidates spend well above the
ceiling prescribed by the Election Commission.
 It also arises from illegal activities like smuggling, drug-peddling.
 The general deterioration in the moral and civic standards of our people.
 Lack of education and knowledge of morality.

THE IMPACT OF THE ECONOMY:

 Black income due to corruption has been resulting in underestimation of GDP in India as a
huge volume of income is diverted to this unaccounted sector resulting in increasing
existence of parallel economy of the country.
 It has been resulting in a huge loss of revenue to the state exchequer due to continuous
evasion of taxes both from direct and indirect taxes
 Concentration of black incomes in the hands of businessmen and capitalists increases
conspicuous consumption which have a demonstration effect on all classes of people.
 It has resulted in diversion of resources for the purchase of real estate and luxury housing.
 It encourages increase in the volume of investment in precious stones, jewellery, bullion etc.
 It encourages speculation, profiteering, black marketing, soaring price level and growing
inequality of income and wealth, leading to imbalances in the working of the economy its
increases the high incidence of poverty.

COMBATING STRATEGIES
Following are some of important measures:
 As evasion of taxes has been considered as the major root of the generation of black income.
Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July
2017 and the GST is devised in such a way that they are many trails to trace those evading
the tax and Input Tax Credit is a big give away and the traders are well aware of it.
 Demonetization of high denomination currency has also been suggested from different levels.
The Modi Government has taken the bold step of
demonetisation of Rs 500 and Rs 1000 notes in
circulation with the intention of curbing terrorism,
black money and counterfeit currency. The big bet in
demonetising is to break the unholy nexus of
corruption, black money and terrorism.

 One of the root causes of corruption is the presence of heavy government intervention which
is reflected in excessive and complex regulations and a high tax and tariff rates.
 Controls, licenses, and permits should be reduced to minimum.
 Heavy capital gains tax should be lowered.
 Registration fees in relation to property and other real estate should be lowered.
 All tax laws should be revised so as to eliminate loopholes.
 Deterrent punishment must be given to those who are found guilty of profiteering, black-
marketing and smuggling.

CONCLUSIONS

The menace of parallel black money has grown to

alarming promotions and is eating away the vital of our
national economy. Corruption will be abolished only
with the efforts of youth if they have make
determination against corruption and black money and decided to cut the grass root of it then
it erase the trace of .but now question arises how youth unite? How they take determination?
Its simple answers is all the teachers reporters, editors, poets, actors unite and teach them the
lesson of morality so they able to abolished all these from the India. When the group of youth
unite and decided to abolish corruption wholly from India then corrupted ruler shall tremble.
All the ministers, rich man officers, peon will start doing their work with morality.

“BE UNITE AND HONEST AND FIGHT AGAINST CORRUPTION”