Corrupt Indian Chizz Cake

Dear Readers, here is something very annoying. Every year in a Developing Country people have to pay bribe in one or the other way to get their work done. For example, Donation in Schools and Colleges where they shouldn’t. FYI donation is considered to be collected for the growth of the institution entirely and not for the growth of bank accounts of their Founders. Likewise there are lot other areas, almost every public sector, where Bribing is a ritual you have to follow to get your work done. Some websites suggest more than 50% people have to pay the bribe to public officials, where in my personal experience everyone in India has to pay the bribe. Thus ratio goes up by more than 40% which will be more than 90% people has to face it. Rest 10% is public officials themselves and hence gets their work done via references. Shocked!!! Prepare To Get Traumatized as I present you yearly statistics.

Bribe paid for few ‘Basic Services’ provided by government like Transport, Education, Health care, Law and Enforcement sums more than 10 Billion USD. It is equal to 100 Corers USD. Thus more than 5000 Corer Rupees are paid as a bribe to officials every year.

Next, Telecom industry and Infrastructure Development together sums more than 46 Billion USD. Where telecom industry alone has the share of 30+ Billion USD and Infrastructure costs 16+Billion USD every year. Let’s round it of to 50Billion USD, it will be about 12,50,000 Corer Rupees and it is every year.

If you think this is all than keep reading as it is getting worse.

According to a Private Organization’s website ipaidbribe.com 29.5Corer Rupees worth of bribe paid by people was reported by the victims which is a small negligible fraction of the total.

Black money is another unforgettable aspect. Where do we stand!! India has larger amount of black money, according to Swiss Bank, than combined black money of rest of the world. Want to know the number?? It is about 1456 Billion USD. Let’s find out how many INR!! 1456 Billion USD = 72800 Billion INR. Thus there is 72.8 Lac Corer Rupees worth of Black Money.

There are lot many other areas which are left out. Now let’s sum up the total amount of bribe we are paying to public officials yearly:

5000 Corer + 12.5 Lac Corer = 12.55 Lac Corer Rupees Per Year

If we add Black Money which is 72.8 Lac Corer Rupees to only one year of bribe paid, it will Sum up to

85.35 Lac Corer Rupees = 85350 Billion Rupees

The damage is done so instead of preventing it as of now let’s see what can we do.

A lower class labor in India earns approx. 200Rupees a day thereby 6000 Rupees per month. Thus a lower class labor makes 72000 Rupees per year. Current Population of India in 2012 is 1.22Billion. If 85350Billion Rupees are equally distributed among the population each person will get at least 69900 Rupees, including lower class labors. It will be as good as their One Year’s Income!!!! Furthermore lets presume there are average 3 members in a household, in which case each household will get 2,10,000 Rupees!!!Now according to an independent survey - PCI(Per Capita Income) in India ranges from 24,681/- to 1,92,652/- which is during the current year.

Finally if money is equally distributed among the citizens of India, Market will become stable, there will be more rotation of money which may in turn reduce interest rates on loans. Ultimately at an individual level there will be a huge amount of stress relieved and confidence built. These effects will encourage people to take higher risk, start new ventures, enhance their current venture by taking a step forward etc. which will cycle back to the Economy of INDIA and invite the growth faster than ever.

If a person like me can analyze this much,

“How Tough Can It Be For Our Finance Ministry to Understand!!!”