Black money-a conundrum

There is hue and cry over the return of black money stashed abroad since the new government came into power.The huge poll promises to bring back every penny of black money has rekindled hopes in the minds of common man.While undoubtedly illicit money abroad is a serious cause of concern,black money circulating in domestic economy is an alarming situation.That said,almost 90 percent of black money is generated domestically.Moreover,not every foreign account is an illegal account.For instance,Indian students studying abroad also maintain their bank accounts that are absolutely genuine.

Therefore, most importantly,it is imperative to stem the generation of black money domestically.The tax laws could be made simpler so as to improve tax compliance.E-governance in the public service delivery mechanism is the key to effective governance.The subsidies ought to be transferred through bank accounts which will curb leakage.The major sectors generating black money are real-estate,higher education and mining.A sectoral approach to promote transparency is the need of the hour.India is one of the major IT powers in the world.A strong political will and innovative transparent governance is necessary.

As regards the black money stashed overseas,a diligent monitoring mechanism in coordination with foreign countries and stronger prosecution measures are the imperatives.