Black Economy

A parallel economy is a “side effect” or “Black Economy” or “Virus Economy” or “Unaccounted Economy” of a nation. It is with no doubt,  a threat and a growth stagnation to the core economy. It is like a virus in body and computer which slows down the entire economic system by frequent spread through the existing normal working system.

Black Income Vs. Black Money

A black income is a source of income which is unaccounted before the eyes of Government accounts which actually counts for the National Income of the Nation.

Whereas, the Black money is the liquid money which is hidden in the eyes of Government and the source is from the Black Income. As the name states the black income and black money are in always dark in the picture.

Impact

The money which are  from illegal means and the source which is hidden from Government accounts are actually to be utilized for the purpose of social reconstructions and public distributions that ensures growth and development of the individual common man. This process of economic and social equality is slowed down and also affected in the means of inequality.

The Government purse is always made artificial shortage which then attempts to have a little more bit on the public taxation(both direct and indirect) frequently over a period of time.

This conditions makes the prices of goods and services to go more. The Common man and the genuine people who contribute to the nations through tax and services are affected adversely.

The basic necessary goods and services are forced to increase the cost which leads to the Inflation conditions.

The Government and RBI should then make a overtake plan and parliament the plan for execution which again bits the government purse unnecessarily.

The black economy again makes uses all these systems by its side and again tries to head up. This process brings the above stated impacts once again.

Remedial Measures

Government knows that how the black economy does head up, but it knows the various nook and corners of sources until some extents only. So the plans of alleviations of black economy is also with the same idealogy only.

Strict laws that leads until heavy fines and even imprisonment of the black economists (who involves in parallel economy)

Awards , honors and special benefits to the people who support for a white economy(a proper and legally systematic economy) should be availed which will act as a role model to others.

Providing Tax benefits, more exemptions limits and Tax rebates and concessions will reduce the amount of black economists.

Transparent and easy tax assessments and licensing will reduce the black incomes.

Unconditional invitations from the government to submit the part of black money to the government and contribute to the government programs will directly reduce a big bunch of black economy