What is the meaning shadow economy? Black money

What is the meaning shadow economy? Black money

Introduction  –

For the development of any country, its social composition is very important, from the economic point of view the development of the country means that the evidence of poverty is considered to be low. In 1990, India and China started with similar economic conditions, India’s potential is not less than China, yet we are 3 trillion US dollar economy and China is 18 trillion US dollar economy.

Economic changes have been made in India’s economy since 1990, it shows the efforts of the government, but still we have not been successful in becoming a developed country from a developing country. The main source of income of the government is the taxes imposed on which the government uses that money to remove the inequality of the country. The more taxes the government will get, the more money it can use for different schemes.

We have to first understand why black money and parallel economy are created because without understanding this psychology, we will not be able to understand anything further and will keep on discussing the above problem only. What happens is that people do not want to pay taxes to the government and earn money illegally. We will try to analyze all these things through this article.

Who is black money?  –

Black money means that the person or organization of any country has not earned money from any business or job under the law made by the government or has paid less tax by violating the law, it is called black money. If any discrepancy is found in the government document, money earned by any person or organization of the country and the direct circumstance is found in it, then it comes in black money.

When the purpose of any institution or person is not to pay tax to the government or to pay less, then it should be considered as a barrier in the development of the country, but the problem in India is somewhat more complicated because the people or organizations who pay the tax believe that The tax we have paid is not used for the development of the country and it is used by politicians and officials for their own benefit.

Due to which there is a hindrance in the development of India and the benefits of our development do not reach the poor and the people of the lower strata of the society. The question is, is this argument of a business or employed person paying tax justified? India’s growth rate has increased since 1990. In fact, it should have increased by three times which has not increased due to black money.

What is a parallel economy?  –

In reality, how much tax does the country get and how much is spent in the country and how much is produced in the country and how much money people earn from it, all these accounts mean the economy of the country. Parallel economy means that this account is not with the country’s system, but business activities are run or money is earned by hiding it from the government system.

It is said by expert economists that India’s real economy is a bigger parallel economy than it is three times bigger economies. Due to this, the country suffers a lot because the tax income that the government should have got is not getting it. This parallel system can be terrorism, there can be buying and selling of illegal goods and such activities are done to launder the wrongly earned money through hawala (Blackmoney transaction).

What does the government not know about this system? Why is the government unable to ban it? We have to see many such questions. Because how we call the system corrupt by the media, but we do the work of choosing our representative in the Parliament. The question arises that whose fault is it then everyone accuses each other. a Politician is corrupt ?, government babu(Government officers) is corrupt ?, many such allegations are made in the society.

Why is there a parallel economy, construction?  –

The reason for the creation of a parallel economic system is the social structure in which the upper strata of the society and the majority of the lower strata of the society clash in it. For this in Europe and America, social changes took place in the 15th century, in which this structure became very weak, but in India it is still very strong, which is called the a caste system.

Only 20 percent of the people benefit from the caste system and the rest 80 percent of the society is not able to take the right advantage of democracy. The system of the country gets income through direct tax and indirect tax and the higher it is, the more the people of the lower strata of the society will be uplifted. But our social mindset does not want to see the lower level as equal, so it increases its wealth by creating as parallel economy as possible.

If countries like Europe -America can leave this mentality, then we should introspect on why we cannot leave. There is one party rule in China and there has also a corruption, but they have prepared to give up their rights for the development of the country, which ultimately benefits everyone. Because by increasing, the economy of the country, it automatically increases everyone’s income and everyone gets good opportunities to earn money.

Corruption & Black Money –

When we hear about black money, we also get to hear about corruption, before 2014, many social organizations in Delhi had a movement against corruption. We had heard about bringing election black money from abroad to India. So we will see what is corruption and how it works.

Whether it is a political representative or a government babu through the government system, through which wealth is created more than its income, it is called corruption. This corruption can be done by an individual or even by a group of people. The money that the government gets through tax is used by the government to provide facilities to the people and spend that money through different schemes.

The work of government machinery is to use this money in the right way for the schemes of the people, but when it is not there and that money is used for its own benefit, it is called corruption. Because this money is not recorded in government documents, hence it is also called black money. This is considered to be the biggest obstacle to make India a developed country.

What is hawala transaction?  –

Hawala means to send your money to another country without using government machinery, for which the most important link is the hawala agent who performs the task of carrying out money transactions from both sides. Its main purpose is that this behavior is not recorded in the government document, which is called black money. If this behavior is to be done legally, then the government and the banks get its commission, but we also give it to the agent.

The difference is that we do not see this money in the account book of our income, so it is called black money. Through this, every day thousands of crores of rupees are dealt with from India under the nose of government law and order. The people involved in this are the people of the government system and the business people who do this behavior, so it is very difficult to put the law and order on them.

On the other hand, such practices are done in illegal business in terrorist activities which are banned by the government. This problem occurs in all the countries of the whole world, but more such behavior is more than poor countries and developing countries. Under certain rules, loans are given to India by the United Nations organization IMF and World Bank, in which there are terms and conditions, according to this, India has to reduce corruption.

Solutions for Black Money –

In 2016, the decision of demonetization was taken by the Government of India, under which the old fifty-five notes were discontinued by the government and new 2000 and fifty-five notes were introduced in the market. Its purpose was to zero in on the black money that was kept in the economy by the people and by the institutions and to revive the economy.

The problem of India’s economy is that like there is corruption and black money in India, in the same way fake notes are also manufactured, due to which the country has to suffer. The winning currency of the government was in the economy of India, almost that much money was again deposited with the government. Many people believed that this effort of the government has been unsuccessful, but it is not that the fake notes which were in the market did not come to the government treasury but they were destroyed.

Therefore, the efforts made by the government and after that to create a system of economic transaction through digital money in the entire market, many such schemes have been done by the government. I have to say here again that the root cause of black money and corruption is the mentality of the social system and its inequality, we have to change it, only then we will be able to end all this.

Conclusion –

In this way we have seen that why India’s economy is not growing as fast as it should have been. In India, another economy is run parallel to the main economy, which is twice or thrice bigger than the real economy, which is the biggest problem for the development of the country. The important question is why business mind and big servant Shah create black money.

It has to be understood that no one discusses, only the upper problems are treated. If we have not found a solution for this internally, then today, many companies bigger than East India like the British are seen doing business in India. Was our purpose of freedom from the British to become slaves again in front of foreign forces? We have to leave our upper caste mindset.

Just like religion and upper castes reduced their rights in Europe, we have to do and honestly strengthen the economy of the country, so that our economy can easily become the most powerful economy in the world before China. Parallel economy means we do not want to give their rights to the lower strata of the society, this is what happens. So we have to introspect on it.



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