Official Answer Key & Detailed Solution
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Correct Answer: Option (D) — Loss of revenue to the State Exchequer due to tax evasion
Concept & Option Breakdown
Standard Reference VerifiedWhile black money creates multiple distortions in real estate, gold accumulation, and political funding, its primary and most severe direct consequence for public finance is the massive loss of tax revenue to the State Exchequer. This fiscal deficit impairs the government's ability to fund essential public infrastructure, defense, healthcare, and social welfare programs.
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