Correct Option
The primary and most direct concern for the Government of India regarding the creation of black money is the loss of revenue to the State Exchequer due to tax evasion. Black money represents undeclared income on which taxes have not been paid. This directly reduces the government's ability to collect revenue, thereby limiting its capacity to fund public services, infrastructure projects, and welfare schemes. This fiscal impact is a core concern highlighted in economic policy discussions and government reports.
Incorrect Options
Options (a) and (b): Diversion of resources to real estate, luxury housing, unproductive activities, and purchase of precious stones or gold are indeed consequences of black money. These activities can distort resource allocation, inflate asset prices, and promote an inequitable distribution of wealth. However, these are secondary effects. While they have significant economic implications, the direct and most immediate impact on the government's fiscal health is the uncollected tax revenue.
Option (c): Large donations to political parties, often associated with black money, can undermine democratic processes, lead to corruption, and create an uneven playing field. While a serious concern for governance and ethical standards, from a direct economic and fiscal standpoint, the immediate loss of revenue due to tax evasion is considered the main cause of worry for the government's financial capacity and economic planning.