The finance ministry has commissioned an in-depth and fresh study, engaging three top national level institutions for estimation of unaccounted income and wealth held within and outside India.
This study will bring out the nature of activities that encourage money laundering and its ramifications on national security. The study has already commenced in March, 2011 and is expected to be completed within a period of 18 months, the Ministry said in a release on Sunday.
The study is being undertaken by the National Institute of Public Finance and Policy (NIPFP); National Institute of Financial Management (NIFM) ; and National Council of Applied Economic Research (NCAER).
The study aims to assess/survey unaccounted income and wealth both inside and outside the country, and profile the nature of activities engendering money laundering both inside and outside the country with its ramifications on national security.
It will identify important sectors of economy in which unaccounted money is generated and examine causes and conditions that result in generation of unaccounted money.
It also examines the methods employed in generation of unaccounted money and conversion of the same into accounted money.
The issue of black money has attracted a lot of public and media attention in the recent past.
Union Finance Minister Pranab Mukherjee had said there are no reliable estimates of black money generated and held within and outside the country. The different estimates on quantum of black money range between USD 500 billion to USD 1,400 billion.
A recent study by Global Financial Integrity has estimated the illicit money outflow to be USD 462 billion.