House panel shies from quantifying black money

jatin
By jatin June 25, 2019 11:27

The report on black money does not put out a final figure regarding the amount of the illicit funds stashed abroad or within in the country.

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  • The Standing Committee on Finance prepared the 73rd report, ‘status of unaccounted income/wealth both inside and outside the country – a critical analysis (a preliminary report)’ which was introduced in both the houses of parliament.
  • The preliminary report was earlier presented to former Lok Sabha speaker Sumitra Mahajan on March 28, a copy of which was also uploaded on the Lok Sabha website following the directions of the committee.
  • The Standing Committee on Finance has shied away from estimating the quantum of black money in and outside India, saying that different methods by various agencies are yielding vastly differing figures.
  • The Standing Committee relied on the following three institutes to come up with their estimates of unaccounted income in the country.
    • National Institute of Public Finance and Policy
    • National Institute of Financial Management and
    • National Council of Applied Economic Research
  • The three estimates varied significantly, ranging from 7-120% of the GDP.
    • As per the report, the National Council of Applied Economic Research (NCAER) study said that unaccounted wealth accumulated outside India is estimated to exist between USD 384 billion and USD 490 billion during the 1980-2010 period.
    • The National Institute of Financial Management (NIFM) said results of estimation suggest that total illicit outflow at the current value (including opportunity cost) from India in the reform period (1990-2008) stands at Rs 9,41,837 crore (USD 216.48 billion). Illicit outflows from the country are estimated on an average at 10 per cent of the estimated unaccounted income.
    • The National Institute of Public Policy and Finance (NIPFP) said that during 1997-2009, illicit financial outflows have been in the range of 0.2 per cent to 7.4 per cent of Gross Domestic Product (GDP).
  • There are no reliable estimates of black money generation or accumulation, neither is there an accurate well-accepted methodology for making such estimation, according to the Committee’s report
  • In the meantime, the Committee would expect the Ministry of Finance (Department of Revenue)
    • To continue their efforts with greater vigour to unearth and bring to book unaccounted income/wealth both within and outside the country, including follow-up action on the seven reports of the Special Investigation Team constituted on black money
    • It also desires that the long-delayed direct tax code should also be finalised at the earliest and reintroduced in Parliament with a view to simplify and rationalise the direct tax laws in the country.

Also read: RBI Revises Stressed Asset Resolution Norms, 

Masood Azhar Blacklisted: UNSC 1267 Committee

Source: https://www.thehindu.com/news/national/house-panel-shies-away-from-quantifying-black-money/article28129306.ece

jatin
By jatin June 25, 2019 11:27