How to fix India’s election funding

how to, how to, how to fix india’s election funding

How to fix India’s election funding

Financial support to political parties has a chequered history in India. The striking down of the electoral bonds scheme by the Supreme Court is an opportunity to rethink the framework regulating corporate contributions in our political process. Before this, taking stock of developments over the last 75 years is helpful.

Old dilemma | Elections require considerable resources. With rising electoral expenditures that parties could not meet through individual contributions and subscriptions, the issue of companies donating to parties arose in Parliament in 1959. GOI proposed Companies Act be amended to provide the mechanism and a limit (Rs 25,000) for companies to donate.

Several members of the parliamentary committee that examined the bill opposed corporate donations. Senior parliamentarian Minoo Masani summed up the apprehensions in two points. In his dissent note, he said, “In a controlled economy, government of the day has virtually the power of life and death over fortunes of business and industrial enterprises.” There were two possibilities, he said.

Money & power | First, GOI could coerce a business house into donating to a party. Second, “selfish and unscrupulous elements in business seek advantages for themselves by getting into the good books of the ruling party in the hope of compensation in the months and years to come.”

Parliament passed the bill in 1960, but by 1969, GOI had changed its mind. It introduced a bill to ban corporate donations. Its statement of objects and reasons stated, “Such contributions have a tendency to corrupt political life and to adversely affect the healthy growth of democracy in the country”. Like any ban, it didn’t stop donations; the practice went underground and heralded an era of “briefcase politics”. In 1985, corporate donations were again allowed.

Expenditure lies | Intrinsically linked to political contribution is electoral expenditure. India has a limit on candidate spending on poll campaigns. In 1951, when Parliament was debating the issue, an MP said, “In such a poor country as ours with a very low standard of living, money spent on elections should be rigidly curtailed. That alone will offer equality of opportunity to qualified and meritorious candidates who have not the support derived from wealth”.

The expenditure limit in 1951 was Rs 25,000 (for single-member constituencies). In upcoming Lok Sabha elections, candidates in large states can spend up to Rs 95 lakh and in smaller states and UTs up to Rs 75 lakh. The Election Commission (ECI) and National Commission to Review the Working of the Constitution have held that these expenditure limits are hardly adhered to and should be repealed. Many columnists quoted A B Vajpayee: “Indian politicians start their legislative careers with a lie – the false spending returns they submit.”

Build donor database | Corporate donations are the resource base for parties in India and abroad. India’s experience with expenditure limits has yet to show effective enforcement mechanisms. Regulating electoral finance requires rethinking on two broad fronts.

The first is to shine a light on contributions parties receive. The electoral bond scheme ensured donations received remained opaque. With the scheme struck down, it is an opportunity to develop a living database of political contributions. Currently, parties do not share information about donations they receive in a machine-readable format.

Open it to public | Parties provide data in scanned PDF files, making it difficult to analyse. Creating this database will bring transparency regarding a party’s support and lead to a better-informed electorate. In countries like the US, compliance information provided by parties is in a format that has catalysed several citizen groups to track and make such information publicly accessible.

Empower ECI | A second rethink is about strengthening ECI. Its institutional budget is roughly Rs 300 crore, with which it tries to fulfil its constitutional mandate of conducting free and fair elections for the world’s largest democracy.

ECI requires a significant infusion of resources and officers to be insulated from political pressure and state interference. For example, currently, ECI does not have an independent secretariat like Lok Sabha and Rajya Sabha. An independent secretariat would allow it to control its personnel’s recruitment and service conditions better. Multiple commissions and ECI itself have made this recommendation.

Independence is key | Another way to strengthen ECI’s independence is to ensure its expenditure is “charged” to the consolidated fund of India. It would give it parity with the Supreme Court, CAG and UPSC. Supreme Court is also hearing the matter regarding the constitutional validity of a law Parliament passed last year, per which GOI may dominate selection process of election commissioner, which has implications for the institution’s independence.

Transparency of political donations and an independent election commission are key to securing the integrity of our elections.

The writer is Head of Outreach at PRS Legislative Research

For more news like this visit TOI. Get all the Latest News, City News, India News, Business News, and Sports News. For Entertainment News, TV News, and Lifestyle Tips visit Etimes

News Related

OTHER NEWS

How to watch today's Kansas City Chiefs vs. Las Vegas Raiders NFL game: Livestream options, kickoff time, more

Patrick Mahomes #15 of the Kansas City Chiefs warms up prior to an NFL football game between the Denver Broncos and the Kansas City Chiefs at Empower Field At Mile ... Read more »

Dieser Brief macht Freisinger Kinder „fix und fertig“: König Charles meldet sich bei Drittklässlern

Schöne Überraschung Dieser Brief macht Freisinger Kinder „fix und fertig“: König Charles meldet sich bei Drittklässlern Dank für die Glückwünsche: Das königliche Paar schickte ein Einen besonderen Brief verfasste im ... Read more »

How to recreate the 'Friends' moist maker Thanksgiving sandwich

How to recreate the 'Friends' moist maker Thanksgiving sandwich Jessie James Decker shared the Thanksgiving sandwich from her cookbook. ByKelly McCarthy November 24, 2023, 4:01 AM Jessie James Decker has ... Read more »

How to Identify an Authentic Bangladeshi Jamdani Saree?

, Nov. 26 — Jamdani saree, an emblem of Bangladeshi tradition, symbolises cultural richness and artisanal finesse. Distinguishing a real Jamdani from cheaper replicas necessitates keen attention to intricate details ... Read more »

How to watch today's Buffalo Bills vs. Philadelphia Eagles NFL game: Livestream options, kickoff time

Stefon Diggs #14 of the Buffalo Bills warms up before the game against the New York Jets at Highmark Stadium on November 19, 2023 in Orchard Park, New York.  / ... Read more »

Fix garbage collection to elevate Jinja's appeal, Babalanda says

The Minister for the Presidency, Milly Babalanda, has advised Jinja city leaders to avoid haphazard developments by strictly enforcing physical planning guidelines, so as to sustain the town’s beauty to ... Read more »

IREDA IPO: GMP remains strong; know listing date, how to check allotment status

The allotment status of IREDA IPO can be checked online through the official website of BSE. While Tata Technologies IPO remained the more popular choice among subscribers this week, the ... Read more »
Top List in the World