👉 Practice this question interactively (Hindi / English / AI)

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

UPSC · 2021 · Economy
Question:
Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

Options

Diversion of resources to the purchase of real estate and investment in luxury housing
Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.
Large donations of political parties and growth of regionalism
Loss of revenue to the State Exchequer due to tax evasion
Answer: Loss of revenue to the State Exchequer due to tax evasion

Explanation:
Black money leads to large-scale tax evasion, reducing government revenue and affecting public expenditure and fiscal stability.

👉 Want AI explanation? Open in MCQ App

← Previous Next →

Recommended articles

Practice More PYQs

📱 Follow Us

Telegram Instagram YouTube