Not so simple truth of black money and bribe

Alok – this post is dedicated to you, to help put this black money discussion in perspective. Truth is not so so simple my friend.

Black money comes in various forms and each of them are complex, let’s analyse it further :

1. BRIBE – I’d believe, it’s the biggest reason why the black money exists. And why do we pay bribe? NOT due to WAGE differential, we pay bribe for following reasons – these are only a few -they are several more:

• Most of our laws/rules are still the same as drafted during British raj some 150 years ago, with cosmetic touch in recent years – they are open to interpretation and just so opaque – no one has the will power to change these!
• Entire babu-dum (Bureaucratic system)  is also a gift from British raj, too much discretion and zero accountability – nothing has changed except the colour of the skin. No one wants to change it – because it suits everyone in the power
• Every babu in lucrative position has to pay bribe to his boss, who in turn has to pay to his boss….who in turn has to pay to the minister to be in that position or to remain in that position. Obviously he needs to “earn” this back

Have you seen the truck drivers palming of ten rupee note to the traffic halvaldar – without asking? Trucker pays despite all the papers being intact – why? Simply to avoid harrasment and delays.

Why do we pay to the BMC chap – because he has the discretion to reject our request throwing some rulebook, or atleast sit on till he pleases.

2. Cash transactions at small businesses – how much money do you think the local kiran shop in your locality earn and how much taxes does he pay? Does he deduct TDS or Profession tax on the payment he makes to employees? It’s not because tax rates are high and different for them – it’s just because we do not have enforceable system. Same Britishers who gave us this archae system (and we are following it like mama’s boys) have overall theirs. Even a small shop owner with 4 person team pays their salary in bank and deducts taxes!

3. Non-taxing of agri income – you have huge amount of cash being generated in agri-economy dominated states, which remains un-accounted. There must be tax on this even if you tax 1% – this way atleast money is accounted!

The change for this has to start from the top and no where else! I recently went to Bihar (after serveral years) and met people at various levels – out of 3 visible changes that one can see/feel – one is lowered corruption levels and reason, man at the top is clean, hence he can afford to be tough with the corrupt.