Sources of Funding of National Political Parties: for FY 2004-05 to 2011-12
Where do the National Political parties get their funds from? An analysis of their Income Tax returns and statements filed with the Election Commission shows that the sources remain largely unknown. Over 75% of the funds cannot be traced and are from ‘unknown’ sources. This becomes very relevant in the light of recent events when the National Political Parties were brought under the RTI Act by a CIC ruling. Unfortunately, full transparency is not possible under the current laws, and it is only the RTI that can keep citizens informed.
· Total income of political parties between FY 2004-05 and 2011-12: Rs 4,895.96 crores
· Total income of political parties as donations from Electoral trusts: Rs 105.86 crores, which is 2.16% of the total income of the parties
· Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission): Rs 435.85 crores, which is 8.90% of the total income of the parties
· Total income of political parties from other known sources (e.g., sale of assets, membership fees, bank interest, sale of publications, party levy etc.): Rs 785.60 crores, or 16.05% of total income
· Total income of political parties from unknown sources (income specified in the IT Returns whose sources are unknown): Rs 3,674.50 crores, which is 75.05% of the total income of the parties
Analysis of Funds Received By Political Parties During Election Period
Analysis of 31 Elections held between 2008 and 2012
Total Income from Funds Received
· The total funds received by the 6 national parties at the party headquarters and at the state units during election period : Rs 2545.36 crores
· The total amount of funds received by the 6 national parties at the party headquarters is Rs 967.41 crores
· The total amount of funds received by the 6 national parties at the state unit level is Rs 1,577.95 crores
· The total funds of Rs 2545.36 crores at the central and state level was received within an average of 115 days from date of announcement of elections to the date of completion of elections
Funds received at the party headquarters
· INC has not declared its income from funds received at the party headquarters for 14 elections out of 31 analysed, including the Lok Sabha Elections. The party’s funds declared at the party headquarters is Rs 278.77 crores (between 2008 and 2012)
· BSP has declared the maximum funds received during election period between 2008 and 2012: Rs 330.36 crores
Funds received at the state unit
· INC received the maximum funds of Rs 754.72 crores within an average of 115 days (from date of announcement of elections to the date of completion of elections)
· The total income of BJP from funds received at the state unit during the elections was Rs 445.39 crores where the party has declared the maximum income from the elections held in 2009 (Rs 169.56 crores) within 144 days and the minimum income from the Bihar Assembly Elections held in 2010 (Rs 5.2 crores) within 80 days
Description of Funds received by political parties at Party headquarters during elections by National Parties
· 90.38% of the total funds received by INC at the party headquarters between 2008 and 2012 was by cash (Rs 251.96 crores) while only 9.62% of the funds was by cheque (Rs 26.81 crores)
· 83.78% of NCP’s total funds was by cash (Rs 14.93 crores) and a meager 16.22% by cheque/DD (Rs 2.89 crores)
The details of the above analysis have been provided in the elaborate reports attached.
From the analysis, it is quite evident that a very large percent of the income of political parties (75.1% for National parties) cannot be traced to the original donor. Hence ADR recommends that full details of all donors should be made available for public scrutiny under the RTI. Some countries where this is done include Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan. In none of these countries is it possible for 75% of the source of funds to be unknown, but at present it is so in India.
· The National and other political parties must therefore provide all information under the Right to Information Act. This will only strengthen political parties, elections and democracy.
Kindly refer to myneta.info/party for more information regarding Income Tax Returns and Contribution Statements submitted by Political Parties
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