The report  on  black money tabled by  the  Standing Committee on Finance in Lok  Sabha on Monday  last, even  if  manages  to  catch  public  attention has failed to create that expected  flutter as it has failed to throw a  strong  light on the most  debated part i.e  the quantum that has been  stashed  outside  country and  the one existing  within. It hasn’t  given any exact figure of  illicit funds  and  thereby  only added  fuel to the speculations which has been hovering over the issue  since decades. But one thing from the report is clear- there is black money circulating unhindered  within the country’s economy and  also parked abroad in safe havens, both in very large volumes which are baneful for India economy.

The  Committee  has attributed  the reason for  this  inconclusiveness   due to  the different methods followed  by various agencies,  each  yielding vastly differing figures. It has taken inputs from three respectable institutes to come up with their estimates and interestingly, they vary  significantly ranging from 7-120% of the GDP and in figures  anything  between $3.6 billion to $490 billion  for  the 1980-2010 time period. The report has also conveyed its helplessness pointing  to  the fact  that a reliable estimation of unaccounted income and wealth inside and outside the country is a real  difficult task since  there is no scope for arriving at a common estimate combining  the inputs of these three agencies and  also due to a lack of consensus  regarding the most suitable one. It can be recalled that the reports of these agencies first  emerged in February last when it was  opined by a large section of experts that  this  could well be the tip of the proverbial iceberg.

Keeping aside the ‘quantitative shortcomings’ of the report, there are also other points that need attention. It has been specifically said that  there are certain  sectors  in the Indian economy where unaccounted income is found to be highest and also the ones that are  emerging fast  as real-time contributors  to this ageless ménage. But most importantly, it is the suggestion to  initiate more vigorous  efforts to unearth black money in and outside the country which is perhaps most important. It needs little financial expertise to  understand the fact that  unless there are concrete efforts  to gather information on offshore bank accounts of Indians located in tax havens scattered not only in Switzerland but also in other locations, progress on this front will remain elusive as ever. In the domestic front, an overhaul of the tax administration is also an absolute necessity.

Black money, can aptly be called an enigma and  until there is a true intention for its elimination, its marauding run will continue.