The financial gap

           The smaller the difference between the richest section and the poorest section of the society, the higher its GDP is.

         TheDespite taking economic measures like imposing income tax and wealth tax, why does extreme poverty exist ? Why do destitures exist ? Where does the fault lie ? There are certain factors which still need to be  looked into. They are

       !) Leakages : Though a fine mechanism of income tax exist, there are still cases where absconding tax payers manage to convince and mislead the authorities, through logical adjustment. Huge amounts of money converted into donations in the name of charity. In some cases, a lot of money can be hidden in the accounts of a number of people who are allured with some money in return for having provided a refuge to the black money.

          2)   The huge amounts of money that goes unnoticed need not only be  deposited into the accounts of some other people.

  3)     There may be cases where the black money may be invested for the small or medium level business of the needy who could be asked to repay at a later time when the absconder’s need arises.

         From the above observations questions arise – Why should the innocent poor and the starving be victimized at the cost of a weak financial machinery that still needs to be strengthened.

         Investigation strategies should not be left stagnant. With the changing strategies of the absconders, there is an urgent need for modernizing obsolete methods of investigation.

             Investigation should not exempt anyone. Political or bureaucratic emasculation should not become an impediment to the investigation process.

             The fact that without economic safety to the people of a nation, the spirit of democracy gets lost, is to be realized by everyone. Subsequently, every individual in the society should join hands with the government in the governing process and in the business of development.

         Literacy and awareness among the people of a nation can help reducing the poverty. However, more measures have to be taken in this direction.

         If people fight against poverty with the weapons of literacy and awareness, it is the government who can reduce the extreme gap between the rich and the poor by weeding out the absconding tax payments. This is not an easy job. It needs upgradation in the techniques of dealing with the intellectual absconders. When law-makers bring pressure on the absconders, the latter explore the other means of evading the tax.