SOME STEPS to check circulation of black money in the country:
(1) As is done in many advanced countries, pay back every paisa taken as income tax from the tax payer's account, once the tax payer reaches the age of superannuation. This move will instill great confidence amongst tax payers. It will check or control temptation to indulge in malpractices like corruption, which is directly linked to the spread of black money. Once the temptation is controlled, to that extent circulation of black money will also be checked.
(2) Both the Central Government and all State Governments must adopt the concept of paperless office. This single move will largely control any thought of indulging in malpractice while taking important decisions or granting sanctions. There are reports that software technocrats have succeeded in creating the necessary software to make this scheme a success. Tracking of every important decision online will not only create more transparency in decision making but also enable the public to know the causes of delay, if any, at any point. Once again, the biggest benefit accruing to society would be the check on indulging in wrongful acts like taking bribe etc. Once this system is in place, (because everything is transparent), to this extent corruption will be greatly controlled.
(3) Let there be an option for all government purchases and sales known as "freebies or commissions" including all defence deals - such "freebies or commissions" could be voluntarily deposited either in the Prime Minister's Welfare Fund or in Chief Minister's Welfare Fund. For example, in the Bofors' case, it was found that once the defence deal was done, a percentage of commission was paid to vested interests. Therefore, commissions of any type should be mandated to voluntarily be paid either into the Prime Minister's Relief Fund or Chief Minister's Relief Fund. This move again will help in controlling flow of black money to a great extent.
(4) With regard to stock market operations, it is found that SEBI is not very interested in becoming an exclusive regulator to oversee the use of funds raised through public issues; as such, in many instances, funds raised through public issues are used for a variety of purposes, keeping the public at large in the dark, with the sole objective of bringing in maximum gains for vested interests. This has been going on for a long time. Either a separate authority should be constituted to oversee this aspect or SEBI should be strengthened to undertake overseeing this responsibility with utmost care. This move will prevent circulation of black money to a great extent.
(5) Forward trading in commodities comprising essentials should be banned. A handful of people know the exact tricks of the trade in forward trading. They know very well when to enter and when to exit because, unlike stock markets where shares are traded and is popular with about 8 to 10 percent of the populace, trading in commodities is limited to vested interests comprising about 1 per cent of the population.
The fact remains, a good portion of the black money gets into this operation resulting in spiralling prices of essential goods and services during certain periods of time. People at large would benefit immensely if forward trading on all essential goods and services are completely banned. In fact a total ban on forward trading on commodity transactions would do lots of good to society. Here is hoping the above will merit strong consideration in the right quarters.
