Black Money Circulation In Indian Economy

India being a young country is facing one of the major problems of black money circulation in economy. Though threat of black money is more in developed countries but developing nations too have their shadows. Today black money has become a global issue. For developing countries, the problem of black money circulation in economy is more complex and serious due to limited availability of their resources and weak institutions which are less reliable as compared to institutions of developed nations and this hinders the economic development. The funds generated in the economy from lawful activities and from illegal activities on which taxes have not been paid are illegally held funds. This results in loss of revenue to the government. Since 1946, the government has launched seven black money schemes that generated revenue to government of more than Rs.1400 crore rupees. In 1951, Voluntary Disclosure of Income scheme has been launched to recover unaccounted money which proved successful. The Government of India has successfully launched a scheme in year 1977 to curb black money circulation in economy which accounted to approximately Rs.33, 000 crore rupees. In 1981 the Central government had officially decided to float Special Bearer Bonds. In 1986, government has launched the disclosure scheme for foreign assets which generated around Rs.67 crores to the government. After LPG reforms, India witnessed globalization. There was increase in flow of Multinational companies in India and Indian stock markets became more robust and started attracting financial institutional investors. Today, black money has become a social and economic problem in India.