India could become a fiscal surplus nation if the government manages to bring back at least one-tenth of the estimated Rs 45 lakh crore black money stashed abroad, industry body Ficci said today.
Indian economy, currently grappling with slowdown, is likely to post a fiscal deficit of Rs 5.13 lakh crore or 5.1 per cent of the GDP in the current financial year.
In a 12-point agenda to revive the economic growth, Ficci said that as per estimates, total black money stashed abroad is about Rs 45 lakh crore which is about 50 per cent of India’s GDP, and is nine times the size of India’s fiscal deficit.
“It is estimated, even if 10 per cent of such black money is brought back to the system, India can generate a fiscal surplus,” it said.
The chamber, however, did not specify how the Rs 45 lakh crore black money estimate has been arrived at.
The government has maintained that there is no reliable information about the money of Indians in undisclosed bank accounts outside the jurisdiction of the country.
It has tasked three institutes — NIPFP, NIFM and NCAER — to conduct separate studies to estimate quantum of black money both inside and outside the country.
Ficci also urged the government to address the issue of repatriation of black money to immediately mitigate the Balance of Payment (BoP) situation by entering into global revenue sharing agreements.
The government’s White Paper on black money alludes to a scheme whereby some Governments between themselves have entered into administrative agreements for revenue sharing.
–Agencies