India ranks 4th in black money outflows with USD 51 billion per annum: report

Washington (PTI): India ranks fourth in black money outflows with a whopping USD 51 billion siphoned out of the country per annum between 2004-2013, a US-based think-tank’s report said today.

An employee counts Indian rupee notes at a cash counter inside a bank in Agartala, capital of India's northeastern state of Tripura December 31, 2010. India's fiscal deficit from April to November was 1.86 trillion rupees ($41.6 billion), or 48.9 percent of the full-year target, the government said in a statement on Friday. REUTERS/Jayanta Dey (INDIA - Tags: BUSINESS)

Notably India’s defence budget is less than USD 50 billion. China tops the list with USD 139 billion average outflow of illicit finances per annum, followed by Russia (USD 104 billion per annum) and Mexico (USD 52.8 billion per annum), according to the annual report released by Global Financial Integrity (GFI), a Washington-based research and advisory organisation.

The illegal capital outflows stem from tax evasion, crime, corruption and other illicit activity, the report said, according to which a record USD 1.1 trillion flowed illicitly out of developing and emerging economies in 2013, the latest year for which data is available.

In all, during this decade-long period of 2004-2014, GFI estimates that more than half a trillion (USD 510 billion) went out of India and in the case of China the figure was USD 1.39 trillion and Russia USD 1 trillion.

Titled ‘Illicit Financial Flows from Developing Countries: 2004-2013’, the study shows that illicit financial flows first surpassed USD 1 trillion in 2011 and have grown to USD 1.1 trillion in 2013, marking a dramatic increase from 2004, when illicit outflows totalled just USD 465.3 billion.

China also had the largest illicit outflows of any country in 2013, amounting to a staggering USD 258.64 billion in just that one year, the report said.

“This study clearly demonstrates that illicit financial flows are the most damaging economic problem faced by the world’s developing and emerging economies,” said GFI President Raymond Baker, a longtime authority on financial crime.

“This year at the UN the mantra of ‘trillions not billions’ was continuously used to indicate the amount of funds needed to reach the Sustainable Development Goals. Significantly curtailing illicit flows is central to that effort,” he said.

Noting that Sustainable Development Goals (SDGs) calls on countries to significantly reduce illicit financial flows by 2030, the report said the international community has not yet agreed on goal indicators, the technical measurements to provide baselines and track progress made on underlying targets and subsequently the overall SDGs.

In its report, GFI recommends that world leaders should focus on curbing opacity in the global financial system, which facilitates these outflows.

5 Comments

  1. VERY DUBIOUS DISTINCTION INDEED .
    2004-2013 — IT WAS THE UNITED PROGRESSIVE(LOOTING|) ALLIANCE ERA. NO WONDER HALF A TRILLION IS SIPHONED OFF FROM INDIA DURING THEIR PERIOD. CONGIES ARE THE MASTERS IN LOOTING. EVERY ONE CAN SEE THROUGH THE NERVOUSNESS AND RESULTANT MAYHEM THE CONGIES ARE CREATING BECAUSE OF SUMMONS TO PAPPU AND HIS MOM!!
    JUST IMAGINE THE MIND BOGGLING AMOUNT OF MONEY THEY MIGHT HAVE LOOTED DURING WHOLE OF 50 YEARS OF THEIR REGIME!

    • Mango Man: Now your party is in power to bring back the black money and that topic was a cardinal political rhetoric of the BJP. Why can’t they bring the black money back to India and expose all the black money holders? Why do you put the blame on the Congress Party, if the BJP is sure about the Congress party looting, let the BJP may take abrupt actions. No, they will not even dare to publish the whole list of the black money holders.

  2. So, in nine years, $ 459 billion. The majority of the black money holders may be the politicians and the BJP Government which offered Rs. 15 lakh/person will be having more in the list associated with the party. The hot subject of black money is a bygone story of the BJP political rhetoric. According to Amith Shaw, the offer of Rs. 15.lakh/ person was simply metaphorical. How many other metaphorical promises?

  3. In all, during this decade-long period of 2004-2014, GFI estimates that more than half a trillion (USD 510 billion) went out of India -Reports.

    Dear readers,

    Modi’s visit to Canada is the first by an Indian PM in 42 years …
    Modi to visit UAE, first by an Indian PM in 34 years : India …
    After 28 years, an Indian PM will visit Australia….

    Is our globetrotting ‘Videsh Sanchar Prime minister who has promised to bring back blackmoney is ever planning to visit ‘Switzerland’?

    If a Washington-based research and advisory organisation Global Financial Integrity (GFI) can track the illicit money, where is our credible investigation agencies? Is our system is so weak that they can’t bring the black money back?

    Well I believe anti corruption crusader ANNA HAZARE is in deep meditation and Baba Ramdev busy marketing his new health noodles.

    Those spending over Rs 32 a day in rural areas and Rs 47 in towns and cities should not be considered poor, an expert panel headed by former RBI governor C Rangarajan said in a report submitted to the BJP government.India ranks 4th in black money outflows with USD 51 billion per annum.

    Incredible India were roti,kapda and makan is not reachable, we are talking ‘Bullet train’, ‘Digital India’…..

    Jai Hind

  4. This report refers to a timeline from 2004 to 2013. Look at some of the responses from illiterate supporters of Congress!! How can anyone be such an ignoramus? Is it due to too much beef consumption?

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