Funding of election campaigns

India is the largest democracy of the world witnesses some greatest election campaigns. But the funding of elections always become a debatable topic. A big country like India requires some great flow of money for the elections.

That’s why often it is said that elections are for powerful and influential people. “The funding of election” has been a controversial and intriguing topic in every general election.

funding for election campaign

Now come to the funding of political parties. How do their election campaigns work? Let’s take a look on the two prominent ways of election funding in India –

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Electoral trust -

Electoral trusts comes under non profit organizations. Before 2014 the funding of elections were done mainly by electoral trust.

These trusts can receive donations from any individual , corporate firms , foreign entities or any Indian citizen .

They are required to know from where the donations are coming and to whom they have to distribute.

There comes a middle man who has the job of distributing the allotted fund to the respective political parties.

Electoral trust can receive donations in the form of cheque, demand drafts or by account transfers.

The Prudent electoral trust is now India’s richest electoral trust which donated Rs. 144 crore of total Rs.169 crore of its income to BJP in the year 2018 according to different sources.

Electoral Bond -

But election funding  in India is not as transparent as it  needs to be and the changes or the reforms have only made the situation worse.

Electoral bonds are a kind of bank note. The then Finance Minister of India Arun Jaitley introduced the concept of electoral bonds on January 2018 for the funding of election.

It can be available in multiples of Rs. 1000, Rs. 10,000 , Rs.1 lakhs , Rs.10 lakhs and Rs. 1 crore.

These bonds can be purchased from selective branches of State Bank of India.

electrol bond

These bonds can be purchased by any individual , corporate firms or any company incorporated in India.
With the intention of curbing black money and to make the election funding more transparent the Modi government issued these bonds between March 1 and March 10 in 2018.

There are valid for 15 days.

But critics say that this scheme will make the election funding less transparent than even before.

As any individual or firm can donate the money without disclosing their names.

There will not be any detailed information about how much amount a political party got from electoral bonds or who funded these parties. According to sources in the year 2018 bonds worth 222 crores were sold.

Out of which BJP managed to get 95% of the total electoral bonds.

So the funding of election campaigns is still a very questionable and debatable topic. Parties coming with an intention to make funding transparent instead are making political funding more suspicious.

Political funding without the use of black money will always become very vulnerable to questions and suspicions.

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