Govt announces five–pronged strategy to track black money

Pranab said government has nothing to hide on the black money

trithesh

Trithesh Nandan | January 25, 2011



With the government having recently faced SC and opposition ire for not doing enough on the disclosure of the black money, finance minister Pranab Mukherjee on Tuesday announced the setting up of a multidisciplinary committee and a five–pronged strategy to track black money.

“The committee will submit it report as soon as possible,” Mukherjee said at the press conference.

“It will set up eight more overseas units. The government has appointed a group to look into the possibility of amnesty scheme to bring out black money. Moreover, the direct taxes code has provisions to check black money,” the minister said.

He said that government has nothing to hide about black money. He quoted the Global Financial Integrity (GFI), a Washington-based think-tank figure released in November saying that graft has cost India $462 billion (about Rs 20.8 trillion) between 1948 and 2008, which Governance Now also reported. “This figure is based on assumption,” he added.

The finance minister also claimed that the government has no reliable estimate of the total black money Indians have, saying that it could be between $500 billion to $1400 billion. “We have detected undisclosed income of Rs15,000 crores in the last 18 months,” Mukherjee told reporters in New Delhi.

The supreme court last week had castigated the governmnent over its inaction on the issue of slush funds of Indians. “India has started receiving information of Indians who have generated income outside the country under double taxation avoidance agreements,” he said.

“No information can be made available unless there is legal framework and no sovereign country is going to share information on black money. There is a way to get information when Income Tax authorities decide to prosecute offenders,”  he said adding that sharing of information would be a violation of international norms.

However, he added that the government is committed to bring back the black money. “Swiss banks have been persistently refusing to divulge information on black money,” he said.

“We have also completed double taxation avoidance agreement with 23 countries,” It has also formulated 10 agreements on sharing data on black money. Moreover, the government has started talks with 65 nations for exchange of black money information.

Another figure released last week by the GFI pinned India’s losses due to outflow of illicit liquidity at $104.1 billion during the period 2000-2008, a period when India’s economic liberalisation was gaining pace.

Comments

 

Other News

What really happened in ‘The Scam That Shook a Nation’?

The Scam That Shook a Nation By Prakash Patra and Rasheed Kidwai HarperCollins, 276 pages, Rs 399 The 1970s were a

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter