It is highly disappointing that the Union government has decided to form another committee on black money to be headed by the Chairman of Central Board of Direct Taxes (CBDT). The mandate of the committee, i.e. to unearth the trail of black money and suggest measures to check country’s wealth from being stashed abroad, makes an impression that the Government has been clueless about it till now. Such a stand of the Central government is highly surprising, especially when the issue of black money has been a perennial source of embarrassment for it. The Central government cannot wash its hand off from the responsibility merely by forming committees because such measures reflect insincerity on government’s part in weeding out the black money. It must be recalled that only a few days back, after directions from the Supreme Court, the Centre had constituted a committee with a mandate to monitor investigations into the cases of black money and derive a mechanism to bring back the country’s wealth parked in tax havens abroad. However, going by the size of the Committee, it is unlikely that it can come out with anything substantial. It seems the Central government is not willing to solve the issue of black money.

If the Central government wants to match its words with deeds, it should ensure that the structure of the Indian economy is put in order with immediate effect apart from introducing political and electoral reforms. At least those at the political helm cannot claim their ignorance about the role of black money in running a political party and elections. It is equally true that the policy makers are well aware that a complex economic structure also makes the monitoring of black money circulation difficult. If the Controller and Auditor General are to be believed, the Reserve Bank of India has failed to keep a tab on the flow of black money. Though a large sum of black money is generated by using the legal loopholes and tax evasion, the Central government must not view the menace only through the prism of tax evasion. In this context, it becomes imperative to highlight that only three percent of the billion plus population in our country are tax payers. The Supreme Court hearing into black money case leaves the Central government with no option to deny the fact that black money is being generated also by exploitation of the country’s natural resource. The Central government’s decision to form two back to back committees reflects that it has yet to understand the illusion surrounding black money. Moreover, by such moves it is apparently clear that the Centre is just trying to portray that it is sincere and committed over the issue, which is not the case.