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Friday, January 21, 2011

4800000000000 [4.8 lakh crore] rupees black money goes out of India to foreign shores!

4800000000000 [4.8 lakh crore] rupees black money goes out of India to foreign shores!

I am sure you are counting the number of zero’s on the figure – Thats the amount of black money which got transferred to foreign shores from India. A new report released by Global Financial Integrity (GFI), states that illicit financial flows from India between 2000-2008 were approximately $104 billion (R4.8 lakh crore).


This report has coincidentally come at a time when Supreme Court has clearly given instructions to authorities to disclose the names of Indians with money deposited in foreign banks, renewing the interest in bringing back Indian money stashed in foreign accounts. [Full report]
To be honest, the figure might be much higher that what the report reveals, but just to give you a perspective of reported figure, it is more than 10 times the total allocation to education in 2010-11.
One of the interesting aspects of the report is that India is 15th in the overall list which is headed by China which has cumulative illicit outflows in region of 2.18 trillion. If you see most of the top countries are oil producing nations!
There is no doubt that Government needs to take strict action against these black money hoarders, unfortunately the problem is – Government itself comprises of people who run this black economy and benefit from it !
On a lighter note, with the kind of numbers we are talking it has become imperative for us to adopt new accounting terminology for Black Money. This has been making rounds on Social Media sites

New Accounting Terminology

  • 1 Cr = 1 Khoka
  • 500 Cr = 1 Koda
  • 1,000 Cr = 1 Radia
  • 10,000 Cr = 1 Kalmadi
  • 1,00,000 Cr = 1 Raja
  • 10 Kalmadi + 1 Raja = 1 Pawar

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