Every person in India must have heard the word “Black Money” in last 4-5 years. But do we understand what this black money really is? As per Investopedia, “Black money is money which is earned through any illegal activity. These transactions generally are done in form of cash and are not taxed. One must need to hide this black money, and use in the underground economy.” To bring it back in the regular market, they need to do money laundering.
Black money creates a lot of problems in Indian society like bribery, corruption, terrorist activity funding and much more. P.M. Narendra Modi initiated the demonetization of rupees 500 and rupees 1000 notes. This was one of the most important and critical decisions made by Narendra Modi to curb corruption and the black money from India.
So, now we have little bit idea about black money and the problem caused by it. Now, let’s discuss it in form of essay and a short speech.
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A short speech Black Money in India
Respected chief guest, Principal madam, teacher and all the friends present here a very good morning to you all. Today I will be talking about one of the most important topics in current Indian society that is black money. Let me start by telling you that there is a lot of politics going on around the black money and corruption. I am trying to be as neutral as possible in this context. I don’t want to be sound like a supporter of the particular party.
Do you ever wonder why these people stash black money? Most of them do it to save the tax, some of them use it for bribery/corruption. And some of these anti-society elements used this black money for funding terrorist activities. Black money is also used for political means, like for funding different activities, good or bad and even for buying the politicians during election time. Same black money is distributed for various election marketing related activities.
We always blame the politicians and rich people for this but have you ever thought that we are also part of the problem. You must have seen your parents bribing district authority for getting some certificate, or giving money to jump the line in the temple. We do this kind of things. This kind of society behaviors provokes these money launderers to play with black money.
To make a real change in Indian society, we need to be the part of the solution. Definitely, there will be solutions needed from the government side too, one good news is that Prime Minister Narendra Modi already started demonetization and other activities to control the corruption and black money.
What can we do? Think for a minute. You don’t need to start a big movement or be part of a social activity, you can do something on your own. Stop giving bribe to government authorities. This small step of yours can lead to a big change. We blame the government for all the problems, we as citizens of this country should take initiative and start solving problems on our own. Once we start doing it then government don’t have any excuse not to be part of this moment.
On this note, I would like to end my speech. I like to thank principal madam for allowing me to speak on this topic. Thank you very much all for listening to me, I hope we’ll see a corruption free country in our lifetime. Thank you very much again, have a nice day.
Essay on Black Money in India
Black money and related corruption activities are one of the biggest problems in India right now. Prime Minister Narendra Modi is trying to control all these activities by demonetization and related solutions. But his problem is not that small to be solved within such small time frame. As per various reports, billions of dollars of illegally stashed in tax havens. Most of it is stored in Swiss banks.
Impact of Black Money on Indian Society and Economy
Black money cripples the government as it is not able to collect the tax on these financial transactions. This makes a big impact on the development of the country, as money collected in form of tax is used for development of the country.
One of the biggest impacts of black money and corruption is people get used to these illegal shortcuts to get their work done. And then government authorities or people in power take advantage of it. People like me and you get used to it and unknowingly we also become part of the problem.
India has very low “Ease of doing business” rating in international economic forums. This means India is not a good place to do business. Legal rules, red tape, bribery, corruption stops foreign companies to invest in India. That is turn slows down the progress.
Solutions for Black money problem | How to fight, stop, eradicate black money and corruption.
When we talk about a solution for black money, we target government for it. Yes, the government must bring in powerful solutions. But if we as the citizen of India are not taking part in it then it is not going to work. What we said earlier is “We are part of the problem” so, “we also need to be part of the solution”. People who invade tax, launder money are from us only. If we change, society will change. Young Indians like me want to see a “Corruption Free” India in our lifetime. Following are the ways we can stop, reduce, fight and eradicate the corruption and black money.
- Never give or take the bribe.
- If a someone asks for a bribe, report it immediately.
- Government processes tend to take time. Have patience.
- If a government employee, an officer is not doing his/her work or using his/her power for his/her own profit or threaten people, immediately report it to the authorities.
- Don’t break the law so you don’t have to bribe.
Tips for Speech, Essay and Paragraph writing
What we saw in the last couple of speech and essay articles is you guys are looking for speeches and essays in various word length like 100, 150, 200, 150, 300, 500 0r 1000 words. Rather than repeating the same topic with a little bit of different language and in various length, we kept only two parts. You can refer both parts for your speech or essay preparation.
- Practice speech before friends or mirror
- You can use information from both sections for paragraph writing too.
- Do not mug up the given information as it is. Add your own flair and emotions to it.
If you are preparing for an anchoring or compering script then also you can use above content. And you like our article then don’t forget to appreciate our work, you just need to leave a comment in the comment box. 🙂
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What is 'Black Money'
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. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through money laundering.
BREAKING DOWN 'Black Money'
In its simplest form, black money is money on which tax is not paid to the government. A store that accepts cash for its merchandise and does not issue receipts to its customers will be transacting in black money since it would not pay tax on the unaccounted sales. Furthermore, a property buyer that purchases land valued for $200,000 in which $50,000 is reported on the books and $150,000 is paid under the table to the seller, will have transacted in black money worth $150,000. The sellers in both examples have earned money from legal sources but evaded taxes.
The most common source of black money is illegal means through the black market or underground economy. Through these portals, drug trafficking, weapons trading, terrorism, prostitution, selling counterfeit or stolen goods such as credit cards, and selling pirated versions of copyrighted items such as software and musical recordings are traded.
The portion of a country’s income that is tied to its black economy affects economic growth of the country. Black economy constitutes a financial leakage since tax income from unreported earnings is not received by the government, thereby, serving as a loss of revenue to the government. In addition, since these funds hardly enter the banking system, money that could be used by banks to fund small business owners and entrepreneurs and, hence, to stimulate the economy, is hidden, stifling an economy. In addition, black money underestimates the financial health of a nation. Since unreported economy is apparently excluded from the official records of the Gross National Product (GNP), the estimates of savings and consumption of nations to the national income and measurement of other macroeconomic variables would be biased and misleading for accurate policy making and planning considerations.
Most black money holders attempt to convert the money into legal money, also known as white money. This is typically done through money laundering. Money laundering can be attempted in a number of ways. For example, consider a consumer pays the sales tax on a retail good, but does not actually purchase the merchandise. If he receives a sale receipt and is reimbursed for the price of the goods, the reimbursement is considered black money. The seller counters this effect by selling the merchandise to another customer who purchases the item, but does not receive a receipt for his purchase.
Money laundering can also be perpetuated using the hawala system of transactions. The hawala system is an informal and cheap method of transferring money from one region to another without any actual money movement and without the use of banks. It operates on codes and contacts and no paperwork and disclosure is required. For example, a money launderer in the US may decide to send $20,000 through a hawala dealer to a recipient in India. The exchange rate agreed on will be fixed at a significantly higher rate than the official rate.
Tax havens, such as Switzerland, offer anonymity to money launderers due to the little to no tax policies on funds deposited in their countries. Other outlets for black money include real estate, jewelry, informal and cash economies, bullion investments, etc.
It is almost impossible to estimate the amount of black money in any economy. For this reason, it is not included in the GDP of a country.
Black Money is also the name of a television series hosted by Lowell Bergman that explores the secret world of bribery in international business.