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?
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Answer: D. Black money is income hidden from tax authorities. The government's main concern is that tax evasion means lost revenue for the exchequer, which reduces money for public spending. The other options are effects but not the core worry.
Watch for: All options are real effects; pick the one that hits the government directly, which is lost tax revenue.
Why the other options are wrong
- A. Wrong because real estate diversion is a side effect, not the main worry.
- B. Wrong because unproductive investment is secondary to the revenue loss.
- C. Wrong because political donations and regionalism are not the main stated concern.
Source to check: Ministry of Finance, White Paper on Black Money (2012)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.