Decoding Electoral Bonds: A Guide to Political Funding in India

 

Understanding Electoral Bonds in Indian Politics

Introduction

Electoral bonds have become a subject of significant interest and debate in Indian politics. Recently, data regarding the amount of money political parties receive through electoral bonds has surfaced, sparking curiosity and discussions. This article aims to delve into the intricacies of electoral bonds, their implications, and recent developments surrounding them.

Unveiling the Data

The release of data revealing the extent of financial contributions made to political parties through electoral bonds has startled many. The Bharatiya Janata Party (BJP) emerged as the top recipient, followed by the Indian National Congress and the Trinamool Congress. Surprisingly, despite being a national-level party, Congress received lesser funding compared to regional parties like the Trinamool Congress.

• BJP: Approximately ₹6000 crores
• Trinamool Congress: Around ₹1600 crores
• Indian National Congress: Roughly ₹1400 crores

Transparency Concerns

The disclosure of donor lists and the quantum of donations has raised questions about transparency in political funding. It's notable that the data released by the State Bank of India covers the period from April 2019 to January 2024, following the introduction of electoral bonds in 2018.

Legal and Regulatory Framework

Electoral bonds were introduced under the Finance Act 2017, aiming to create a system for transparent political funding. Individuals or companies interested in donating to a political party could purchase electoral bonds from the State Bank of India after fulfilling tax requirements. However, concerns persisted regarding the lack of transparency, especially regarding the disclosure of donor identities.

Supreme Court's Intervention

In a significant development, the Supreme Court recently ruled to discontinue the electoral bond system. While this decision marks a major shift, it also raises concerns about the potential resurgence of cash-based political funding in India.

Conclusion

Electoral bonds have been a contentious issue in Indian politics, raising questions about transparency and accountability in political funding. While the recent Supreme Court ruling marks a significant development, it also underscores the need for robust mechanisms to ensure transparency and integrity in electoral financing. As India navigates its electoral landscape, the future of political funding remains a subject of scrutiny and debate