The Black Money Report : A Critical Review THE REPORT on the state of the black economy in India, prepared by the National Institute of Public Finance and Policy was released by the Finance Minister, Shri V.P. Singh, on June 24,1985. The Report titled, 'Some Aspects of the Black Economy in India" (referred to as the Report in the following) is based on a two year study commissioned by the Government of India. Interestingly, first, only a Summary of the Recommendations apd Conclusions was released and only later was the full. Report made available to the public. The summary of recommendations and conclusions fully vindicated the Government's policies of granting tax concessions to the rich, and the recent changes in the industrial policies in favour of the private sector, (see Kumar, 1985'b). The new 'pragmatism* has thus received support on yet another ground namely, that of helping to curb the evil of black income generation. However, a detailed reading of the Report indicates that some of the key recommendations and conclusions either do npt follow from the research presented and actually go contrary to the findings in the Report or are not at all based on any research cont The recommendations for which no research is contained in the Report include: a) 'suitable adjustments in the value of the rupee (devaluation) and easing of exchange control' (p.450). b) 'shifting from quantitative import controls and a system of import licenses to regulation through tariffs' (p.449) c) 'financing of election expenses t).451). d) 'Policies designed to promot * Centre for Economic Studies ft Planning, JawahaHal Nehm University, New Delhi