By NewsGram Staff Writer
A new study conducted by Global Financial Integrity (GFI) has revealed that in India the riches acquired through black market are more than the expenditure on education and health sectors.
The average yearly income from crime, corruption, tax evasion and other illicit finances were nearly 120% more than the government’s annual education spend and about 100% more than health expenditure.
The report coordinated outflows of black money from 82 developing countries and found that the poorer the country, the more money is illegally taken out from it.
Reportedly, the investigations have shown that globally, 80% of the illicit financial flows take place through trade misinvoicing done by international corporate companies.
In India, this component exists more predominantly, accounting for over 98% of illicit financial outflows.
The average yearly illicit outflow in India for the years 2008-12 was 4% of GDP, 10% of trade, 215% of foreign direct investment (FDI), 40% of total tax revenue and 0.7% of capital stock, the report stated.
The report also found an association between illegal financial flows and higher levels of poverty, higher levels of economic inequality, and lower levels of human development.