MUMBAI: The amount of potential black money in the system could be Rs 3 lakh crore or Rs 7.3 lakh crore, says the Economic Survey.
To estimate amount of black money whether Rs 3 lakh crore or Rs 7.3 lakh crore, the Survey has used assumptions of soil rates – rate at which notes are considered to be too damaged to use and have been returned to the central bank – of other countries.
The survey has used assumptions of soil notes of other countries to arrive at the number. “Using relative soil rates for $50 and $20 notes and applying them to comparable Indian high denomination notes, yields an estimate of the amount not used for transactions, and hence potentially black, of about Rs 3 lakh crore,” said the Economic Survey in Demonitisation: to Defy or Demonitise. Rs 3 lakh crore represents 2% of the GDP.
Finance Minister Arun Jaitley tabled the Economic Survey in the Parliament today. The survey presented an overall view of Indian economy of the previous year and recommended the future policy challenges.