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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Q: (IAS/2021)

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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,208,42,16,14,12,208

keywords: 

{'black money': [0, 0, 0, 1], 'main cause': [4, 0, 0, 3], 'investment': [0, 0, 0, 1], 'large donations': [0, 0, 0, 1], 'state exchequer': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'growth': [1, 1, 1, 0], 'effects': [0, 0, 3, 3], 'tax evasion': [0, 0, 0, 3], 'government': [5, 0, 0, 1], 'revenue': [3, 2, 3, 11], 'precious stones': [1, 2, 0, 3], 'unproductive activities': [0, 0, 0, 1], 'jewellery': [0, 0, 0, 1]}

Loss of revenue to the State Exchequer due to tax evasion is the main cause of worry to the Government of India because it hampers the ability of the government to provide essential public services and undertake development projects. It also leads to an uneven distribution of wealth and income inequality in the country.