A Minor Matter of Details ?

Some 50 years ago, IIM-A ( Indian Institute of Management – Ahmedabad ) was the only premier management institute in the country

Prof Foltz was a visiting professor from USA, who taught “ Business Policy “

He had a robust sense of humor and used to tell the following story :

Once , a mouse sought consultation from the professor

During the meeting, the mouse said :

“  Sir , I am mortally afraid of the cat which keeps chasing me . What shall I do ? “

Professor : 

“ This is a problem of strategic importance and needs deep analysis. Come back tomorrow “

When mouse turned up next day, Professor said : 

“ I have perfect solution . Turn yourself into a dog “

A very elated mouse ran home, singing “ I need to be a dog . Who is afraid of the big bad cat ? “

Next day , mouse turned up once again at the office of the professor and said :

“  Sir , without doubt , you have come up with the 

perfect solution but HOW do I morph into a dog ? “

To which , with utter disdain , professor replied :

“ Look , Micky Mouse  , as a professor of BUSINESS POLICY , I only pronounce the STRATEGY . I cannot be bothered with working out the minor details of how to implement the POLICY “

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BUSINESS  POLICY  :

As far as the menace of BLACK MONEY is concerned , BJP’s 2014 Election Manifesto reads ( pg 4 ) :

Black Money

By minimizing the scope for corruption, we will ensure minimization of the generation of Black Money

 .

BJP is committed to initiate the process of tracking down and bringing back black money stashed in foreign banks and offshore accounts.

We will set up a task force for this purpose and to recommend amendments to existing laws or enact new laws

We will also proactively engage with foreign governments to facilitate information sharing on black money

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CONTEXT :

 Just came across following news report :

Black money of Indians stashed abroad is in range of $216bn and $480bn, govt reports 

Extract :

The amount of black money outside India was Rs 9.41 lakh crore or US $ 216.48 billion

between 1990 and 2008, a government-commissioned study has concluded, adding that this amount could be one-tenth of the total estimated illegal wealth.

“ Illicit outflows from the country are estimated on average to 10% of the estimated unaccounted income,” said the study by National Institute of Financial Management (NIFM)

“ Taking the capital outflow worth (stock) US $498 billion, its share in total unaccounted

  wealth can be estimated as 2.8%,” NCAER report was learnt to have concluded.

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IMPLICATION :

If 2.8 % amounts to $ 498 billion , then the “ Total unaccounted wealth “ could be as high as $ 17786 Billion ( Rs 1245,00,000 Crore = Rs 1245 lakh*crore )

BLACK MONEY unearthed so far :

#   Black Money ( Undisclosed Foreign Income and Assets ) Act – 2015 … Rs  4,100   Crore

#   Income Declaration Scheme/PM-Garib Kalyan Yojana – 2017 …………… Rs  72,200   Crore

#   Benami Transaction Tax – 2016 ( value of attached property )……………Rs    3,500   Crore

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                                                                      Total……. Rs  79,800  Crore  [$ 11 Billion ]

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WHAT  NEXT  ?

Without doubt, elimination of the scourge of Black Money will, once again figure prominently in the election manifestos of BJP and Congress

Manifesto drafters are quite like Prof Foltz . Their job is to lay down the POLICY on Black Money

Do not expect them to spell out the DETAILS of how precisely, they will ensure that Rs  1245 lakh*crore worth of Black Money will get unearthed and put to productive use !

But , in case Shri Arun Jaitlyji instructs his Finance Secretary to work out the DETAILS , he may want to look up my following earlier emails

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DETAILS  :

Baba Ramdev and Black Money  ………………………………………………………………[  29  May  2011  ]

Magic Wand ?    …………………………………………………………………………………………[  09  June  2011  ]

Create Wealth to Create Jobs  ………………………………………………………………….[  26  Feb  2014   ]

Don't Ask " How " ?  ………………………………………………………………………………….[  07  April  2014  ]

Next 100 Days  …………………………………………………………………………………………..[  16  May  2014  ]

White Holes of Black Money ?  …………………………………………………………………..[  03  June  2014  ]

A CASE FOR ZERO PERSONAL INCOME TAX ………………………………………………[ 11  Nov  2014   ]

A VIRTUOUS CIRCLE ?  ……………………………………………………………………………….[  04  Jan  2015  ]

Making Molehill out of Mountain ? ……………………………………………………………… [ 19   Nov  2015  ]

STRUCTURAL REFORMS ?  …………………………………………………………………………..[  30  Jan  2016   ]

TIME IS NOW !  …………………………………………………………………………………………….[  02  Feb  2016  ]

Don't Expect This in Budget  ………………………………………………………………………..[  28  Feb  2016  ]

Quantum Jump ?  ………………………………………………………………………………………  .[  29  Feb  2016  ]

Making India a Tax Haven ?  ……………………………………………………………………    [ 04  April  2016 ]

FDI : By any other name ?  ……………………………………………………………………..    [ 01  July  2016  ]

Prime Minister Who Listens  …………………………………………………………………………[  03  Dec  2016  ]

One Infrastructure SPV ? More will follow  ……………………………………………….  [20  March  2017 ]

 

What Goes Out , Comes Back ?  ………………………………………………………………….[ 05 May  2017  ]

Private Sector in Infrastructure ?  ……………………………………………………………….[28  July  2017  ]

Nibbling on Crumbs ?  …………………………………………………………………………………  [08  Aug  2017  ]

 

How to Raise $ 500 BILLION  ……………………………………………………………………  [17  Sept  2017  ]

From Garbage to Power ?  ……………………………………………………………………….   [ 16  Jan  2018  ]

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22  Feb  2019

Rsvp :  hcp@RecruitGuru.com