Narendra Modi, the Prime Minister of India, a man well-travelled throughout India and now the world, has a penchant to throw solutions at people as examples of change, while exhorting them to accept challenge and find solutions. Modi may be accused of anything but not lack of sufficient knowledge about any subject. The reason is clear, as shared by him publicly, he likes to keep himself uptodate by seeking knowledge from books/net or people alike.
Modi has for the first time shown himself to be clueless about one subject: Income Tax and black money generation. He has no clue how large is the off the book or cash economy of the country.
In the last episode of radio talk ‘Man Ki Baat’ or Talk from heart he has warned people to declare their black money by last day of September 2016, the date fixed or else there may be severe consequences. May be he knew yet he chose to bluff to people! Or may be he believed in what he said!
If it is the second then Modi does not know the extent of problem. People may declare some or may be coerced to do it by Income Tax Officers, especially in small towns. Reports are pouring in that rich communities of traders e.g. Jewellers are being threatened to declare some black money lest there will be consequences. Somebody claimed it happening here in New Delhi as well but more of a request not coercion.
There is nothing new in the declaration scheme. Such schemes of declaration of black money are launched every decade and meet marginal to moderate success but black money grows as usual. Why?