|
There are two sides to this entire Black Money story. First is the bitter reality of the parallel economy that runs in India, amounting to huge revenue losses to the governments each year. The black money, not only robs to country and its citizens of their revenues, but also can then be used into funding terror activities, because this amount may very well be transferred via Hawala Channels ( they won't wire black money to tax havens, would they ? ). This is the money that can be used by the government to increase the services, this is the money that was intended to be transferred to the citizens in the form of increased infrastructure and better services. Ultimately citizens end up paying hefty amount of money for really crappy services. the author is right in suggesting that this stash, if it even existed in no longer lying in the swiss banks, and has been rerouted to other investment opportunities, and possibly rerouted to Indian markets itself, via different channels (like the controversial participatory notes, shell companies etc). Both the current and the previous government have provided enough room for managing the black money, and I'll be surprised if India is successful in extracting any significant amount of money (order of 10 Mil. $), or to extract only account closure reports for the Indians who held account in various swiss banks and banks at other tax havens like Liechtenstein. The other side of story is that it has become an issue that attracts eye balls. The amount that is suggested to be at stake is huge enough to attract the attention of even the upper middle class. People are very much dissatisfied with the performances of subsequent governments, and that made the Black Money Issue something on which political campaigns can be built upon. This issue was advertised in such a way that would attract the attention of average person, who wouldn't go into the details of the issue, by using headlines like, "We won't have to pay any taxes for a decade", "Every citizen would be given X sum of money", "India's revenue deficit would be bridged" etc. As the events and outcomes of this election suggests, it worked. The current government even managed to show the act of constituting the Special Investigation Team to look into this matter, as a voluntary act of being righteous, when in reality they were just following the Supreme Court's directive to do so within a week. Curious days ahead. |