Correct answer: (d) Loss of revenue to the State Exchequer due to tax evasion
Explanation
- A
Diversion of resources to the purchase of real estate and investment in luxury housing
Luxury housing. A symptom, not the main fiscal worry as keyed.
- B
Investment in unproductive activities and purchase of previous stones, jewellery, gold, etc.
Gold and jewellery. Another sink for black money.
- C
Large donations to political parties and growth of regionalism
Political donations. A governance worry, not the revenue line.
- D
Loss of revenue to the State Exchequer due to tax evasion
Loss of revenue to the exchequer from tax evasion. That is the government’s main fiscal complaint.
Summary. Official key is (d). Black money’s core public-finance harm is tax evasion — revenue lost to the State. Real estate, gold and donations are channels, not the keyed ‘main cause of worry’.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
-
2026 · Q79 · General Studies · 2 marks
Which of the following statements about DHRUV64 is/are correct? 1. It is the third chip fabricated under the DIR-V Programme with an overall aim to enable the creation of microprocessors for India. 2. It is India's first homegrown 1.0 GHz, 64-bit dual-core microprocessor. Select the answer using the code given below: