Ravi Speaks:-“ELECTION FUNDINGS AND SPENDINGS”.

Election fundings and spendings

 Ravi Speaks:

Updated on 18.11.2022

“ELECTION FUNDINGS AND SPENDINGS”

Transparency in Election Money: –

Remember 2020 US elections-all the stress laid down by the media, mainly the newspapers and the analysts of that time, was on the donations and the collections made by the individuals and the parties in the fray. All this was possible because of the availability of timely & easily accessible information about political contributions. India has much to learn & emulate from the US as far as transparency in political funding is concerned.

In shorter terms we can say that in the US the transparency of such collections also could be maintained-whereas here in our country the rules which were made as the limitations for the collections of such type were even given the loose ropes so that more and the more unaccounted amount could be easily adjusted into the various parties’ accounts for the elections and the real misery here is that even the opposition stands to gain through such laxities given and therefore no one can raise any issue out of the whole amendments made.

Introduction of Electoral Bond in India:-

The greatest achievement in India’s election funding laws is the mysterious electoral bond. Regardless of the name, they look similar to the promissory notes financial backers know about: buyers aren’t paid any interest.

Our earlier Finance Minister Late Mr. Arun Jaitley, who previously declared designs for the electoral bonds in 2017, contended that they assisted with further developing transparency since they were banking instruments and each political group needed to disclose the amount it got. Assuming full transparency was required, benefactors would return to cash, he wrote in a January 2018 Facebook post.

Anyone can buy an electoral bond at the government-owned State Bank of India in denominations ranging from 1,000 rupees to 10 million rupees. Afterward, they are delivered to a political party, which can exchange them for cash. They don’t carry the name of the donor and are exempt from tax. For those in India worried about anonymous money in politics, the process for changing the laws has offered little reassurance that the new measures were an improvement. The changes were introduced in parliament via a money bill, a measure that only needs to be passed by the lower house controlled by Modi’s ruling party and not the upper house.

How a Foreign Company can fund the elections:-

A similar tactic was used to pass with little debate rules that changed the definition of a foreign company. Previously, all subsidiaries of international entities were treated as overseas donors and could not make political contributions. Now if a foreign firm has a stake of less than 50 percent in a company operating in India, that unit can fund Indian elections. While several lawmakers protested the moves, analysts said the amendments will benefit both Modi’s Bhartiya Janata Party and the main opposition Congress party. “Nobody from the opposition spoke up,” the commentator Mr.Rao said. “Maybe everybody realizes they stand to gain if they come to power?”

It is legal for companies to give donations, but the trusts work as a blind pool:-

Look at the ambiguity and the provision for adjusting the unlimited funds within the nomenclature of election fundings- it is legal for companies to give donations, but the trusts work as a blind pool. Companies disclose how much funding they have provided, but the trusts aren’t required to specify which company has funded what party. Political parties are funded by contributions from multiple sources. One of the largest sources of funding comes from party members and individual supporters through membership fees, subscriptions, and small donations. This type of funding is often referred to as grassroots funding or support. Campaign finance, also known as election finance or political donations, refers to the funds raised to promote candidates, political parties, or policy initiatives and referenda. Political donations to funds received by political parties from private sources for general administrative purposes.

Present scenario-5 States in India going for polls:-

Look at the present scenario-where India is going to elections for the five states starting from 10^th Feb in five phases and ending up the whole operations till 10^th March-when the results would be declared. The major seven national parties are fighting closely despite the pandemic effects and the restrictions being imposed on their election campaigns. It is very important that just as the amendments have been made to get the new ways out for the extra collection of the funds from both the known and the unknown sources-likewise the election commission also has given the freedom to the various parties in form of again conducting the rallies although in limited numbers and phases.

Globally BJP is the biggest party with the highest number of members and second comes the Chinese Communist party:-

As per the data, over 170 million (as reported on 16.10.2022) party members are in BJP-making it the world’s biggest party and around 96 million in the Chinese Communist Party. Likewise, as per the latest data available, the biggest party in the world-BJP has amassed around Rs. 4848 crores -whereas the second-highest (in India) Congress has also amassed an amount of approximately Rs.588 crores. Although we have almost 2858 total parties in the country and eight national parties-imagine the total amount of funds getting accumulated with all the parties, especially during the election phases.

The million-dollar question-how these parties spend this huge money in billions on the occasion of elections?

So far, the money accumulation process and the various acts undertaken by the present government in easing the various procedures to accumulate more and more amounts have been highlighted. The million-dollar question now is how these parties spend this huge money in billions on the occasion of elections? In the last elections, I along with my wife had gone to our polling booth, and what we saw there was astonishing. We saw a line of cars and SUVs full of sweet boxes in some and blankets in other vehicles. We saw workers of one party a known one, giving the sweet box to almost all the people at the booth mentioning their party name. Some people took the box and others did not accept the same. This whole exercise went on for almost half an hour and suddenly we found all the cars and SUVs trying to come out of the areas fast and vanished in no time. Although no violence or slogan was shouted at the spot, I was surprised to see that the people who were giving those blankets and sweet boxes were not at all bothered and things went on like that for a continued half an hour. We saw the police after some time there, but they also were not serious about catching even a single worker who was still there roaming around. I had heard a lot that the parties give money in cash to the voters coming to the booth, but I have seen none such incidence live except in TV and movies. Still, the distribution of sweets and blankets also looked very awkward to me, since it was something very unusual. This way, a very fractional accumulated amount from the political parties is spent. Imagine the huge billions that the bigger parties collect?

Normally, the expected expenditure of the funds by the parties is:-

Understandably, the money is spent on administrative expenses, the candidate’s election, and on his promotional aspects. Above all, in ensuring the safe and sound election lectures/rallies by the fighting candidates before the elections and their various logistics to be maintained. The spending of liquor and managing certain localized shows and also regional dances, etc are the main expensive and attractive things happening during the elections here in our rural-countryside belonging to the bigger states. Although all this is strictly not allowed still parties do such objectionable acts with the help of the huge funds raised by them.

Expenses of the winning parties during recent elections in Tamil Nadu and West Bengal:- 

The DMK and the Trinamool Congress (AITC), both winners of State elections in 2021, spent over Rs. 265 crore during their election campaigns, according to the reports submitted to the Election Commission of India (ECI). This amount is just the amount of two winning parties. This talks in greater length about the total expenditure during each state’s election canvassing and party propaganda with various advertising acts.

The time during which the parties are banned from conducting election rallies this time:-

This time, the best phase was the small duration during which the election commissioner announced a total ban on conducting the election rallies, especially when the COVID-19 restrictions were imposed during the third wave. It lasted hardly for a fortnight and now the commissioner has again eased off the rallies slowly, which is nothing but the facilities being provided to the parties to show their power behind the scene.

A huge quantum of money affects the national economy drastically. Can something be thought of saving this?

Imagine how our country’s economy gets shattered with the conduct of simply one national countrywide election. If all these funds-which the political parties raise and prove their prowess that way are used for the developmental issues of the country in the various sectors like industries, health, road development, and technical advancements-how fast our country would run ahead. If a certain sure way is worked out by which such election process is minimized to the bare minimum expenditures-I would think the progressive & developmental movement of our country would pick up fast and the people of our country would be lucky to have bigger advantages and comforts.

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