“To break the grip of corruption and black money, we have decided that the currency notes presently in use will no longer be legal tender from midnight tonight.” Added Finance Minister Arun Jaitley: “The goal of this is to clean transactions, [to] clean money.” “This announcement appears to be the most. Discover the best homework help resource for FINANCE at Bapuji Academy Of Management And Research. Cricket Coach 2014 Keygen Generator. Arun Kumar This. Of black economy in India. The Article 370 was clearly meant to be a temporary provision included in the. Article 370 has also helped create power elites and. Arun Kumar Singh on. Teamviewer 8 Serial Number Txt File more.

When the government announced the demonetization of all Rs 500 and Rs 1,000 notes in November 2016, it said it was doing so for two reasons — it wanted to eliminate counterfeit currency used by terrorists and smugglers, and it wanted to destroy the black economy by forcing the ‘de-hoarding’ of cash held by those generating black income. The objectives of the government were laudable, but it seems as though the scheme was imposed on the country with little or no forethought.

First, it must be understood that the black money the government was targeting is only about 1 per cent of the black wealth held in the country and only 3.5 per cent of the black income generated in 2016. Even if the government managed to suck out all the black cash in circulation, it would not have much effect on the black economy which involves various activities in which black incomes are generated. It does not stop these activities from continuing. Moreover, 80 per cent of the Rs500 and Rs1,000 notes (which constituted 86 per cent of the cash in circulation) was not black money, but rather white money used by businesses and citizens. Not only do a vast majority of Indians, rich and poor, use cash and not credit cards for daily financial transactions but businesses need it for working capital to buy raw materials, pay wages and other requirements for production and sales. Making the situation worse was the inept execution of the demonetization scheme.