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NEW DELHI: An average urban household in India pays around Rs 4,400 annually as bribe, while rural households have to shell out Rs 2,900, a government-commissioned study on unaccounted wealth has revealed.

The survey conducted by National Council of Applied Economic Research (NCAER) showed that individuals in Lucknow, Patna, Bhubaneswar, Chennai, Hyderabad, Pune as well as rural areas paid maximum amount of bribe for general work, admission and to police personnel.In the cities, an average of nearly Rs 18,000 was paid for securing jobs and transfers, while payments to traffic police personnel was at around Rs 600 a year. The survey was conducted between September and December 2012.

A series of surveys showed that black money is generated through bribes and pay-offs to bureaucrats and politicians, which could range from award of contracts to leakages from development schemes, mining, sale of oil products and settlement of non-performing loans by banks.

NCAER along with the National Institute of Public Finance & Policy and National Institute of Financial Management had been tasked by the government to provide estimates of black money, following an observation by the parliamentary standing committee on finance. While the reports were submitted to the finance ministry in 2013 and 2014, it is only now that they have been circulated for comments from other departments.

Pointing out that bribe is rampant in rural areas, especially in schemes meant for the poor, the report has revealed how half the beneficiaries of government schemes including rural job guarantee scheme (MNREGS), public distribution system, Indira Aawas Yojna, social security programmes and scholarships had to offer money to get their entitlement. This finding is based on a survey of 359 households in Uttar Pradesh, Bihar, Odisha, Tamil Nadu, Andhra Pradesh and Maharashtra. And, despite the claims made by the government, the report estimates that leakages are more common under MNREGS.

It also highlights the extent of corruption, which ultimately generates black money, so far as public sector investment is concerned. Based on interviews of retired government officials, the report suggested that public sector investment is an easy source of illegal funds for politicians and bureaucrats. The unaccounted money earned could be 2-10% of the project cost and it could cross 20% due to delays. The report estimated that 5-10% of the additional cost in siphoned off.

Based on a sample survey of private contractors in 15 states including Andhra Pradesh, Bihar, Delhi, Gujarat, Karnataka, Maharashtra, Uttar Pradesh and West Bengal, the report says on an average 9% of the project cost is paid as bribe. About 80% of contractors interviewed have admitted of paying bribe for works. It is no different so far as manufacturing sector is concerned. According to the report, 91% of the respondents admitted to have paid bribe.

The report has also brought to light how on an average people running roadside vends and eateries pay approximately Rs 1,100 per month. These findings are based on a survey in Delhi, Noida, Lucknow, Patna and Hyderabad. The report says about 13% of the earnings are given as bribe.

The study, sponsored by Central Board of Direct Taxes, has come at a time when MPs across party lines have asked the government to come out with a policy to stop generation of black money within the country. The lawmakers have highlighted how the black money generated here is either stashed abroad or invested in real estate, gold and jewellery and until this is stopped, the fight against unaccounted wealth will remain unfinished.