Question

What are the effects of black money on economy?

Answer 1

Effects of Black Money on economy :
1. Dual economy (Dual economy in terms of developed sector on one side under
developed sector on the other side.)
2. Tax evasion, thereby loss of revenue to government.
3. Undermining equity
4. Widening gap between the rich and poor
5. Lavish consumption spending
6. Distortion of production pattern
7. Distribution of scarce resource
8. Effects on production.