Modi May Reap $45 Billion Budget Gain on Anti-Graft Cash Ban
- About $45 billion is estimated from ‘black money’ retrievals
- However consumption may intially slow in the coming months
India Pulls Big Bank Bills in Corruption Crackdown
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Prime Minister Narendra Modi’s biggest move to fight tax evasion and graft can add $45 billion to India’s budget, or about three times the size of Iceland’s economy.
Mumbai-based brokerage Edelweiss Securities Ltd. predicts the government’s surprise crack down on high-value currency notes will uncover 3 trillion rupees ($45 billion) in black money, which is cash that’s stashed away to avoid tax. ICICI Securities Primary Dealership Ltd. is even more optimistic, pegging the figure at as much as 4.6 trillion rupees.