The Association of Democratic Reforms (ADR), a non-governmental organization based in New Delhi, recently put forth a report outlining the critical role of Electoral Bonds in financing the political parties in India. It reveals that within 2016-17 and 2021-22, seven national and 24 regional parties received total donations amounting to ₹9,188.35 crore via Electoral Bonds.
Key Highlights of the ADR Report
The ADR report details various aspects of political funding, including key highlights about the donation sources. The report suggests that in the year of the general elections (2019-20), the highest donation from Electoral Bonds was received tallying at ₹3,438.8237 crore. Besides, the analysis indicated that 55.90% of the total donations collected by the 31 analyzed political parties came from Electoral Bonds, with 28.07% from the corporate sector, and 16.03% from other sources.
National and Regional Parties: Rise in Electoral Bond Donations
There was a distinct surge in the donations received via Electoral Bonds by national parties, which increased by as much as 743% between FY 2017-18 and FY 2021-22. Furthermore, the regional parties also saw a substantial portion of their donations coming from this platform.
Power-Biased Donations of Electoral Bonds
Within the national political parties, the BJP, being the ruling party, secured the most abundant donation. More than half of the BJP’s overall donations were raised through Electoral Bonds, aggregating to ₹5,271.9751 crore. The Congress followed in second place with ₹952.2955 crore (61.54% of its total contributions).
About Electoral Bonds
The Electoral Bonds system was established in 2017 and implemented in 2018 as a mode for individuals and entities to donate to registered political parties meanwhile maintaining donor anonymity. State Bank of India (SBI) has the authority to issue these bonds.
Eligibility of Political Parties and Purchase of Electoral Bonds
Political parties registered under Section 29A of the Representation of the People Act, 1951, and having secured not less than 1% of the votes in the last general election are eligible to receive electoral bonds. These bonds can be bought digitally or through cheques and encashed only through an authorized bank account of the political party.
Transparency, Accountability, and Benefits
The implementation of the Electoral Bonds scheme comes with a range of benefits, such as enhanced transparency, accountability, and discouragement of cash transactions. Additionally, it preserves the anonymity of the donor while ensuring that political parties disclose their utilization of the received funds.
Challenges and Concerns Surrounding Electoral Bonds
Despite its advantages, this system also presents a number of challenges. It conceals the identity of both donors and recipients, which can potentially infringe upon the right to know, integral to the right to freedom of expression. Furthermore, government access to donor data can lead to misuse of information and compromise free and fair elections.
Future Suggestions & The Way Forward
To rectify the existing issues with the Electoral Bonds scheme, it is proposed that measures enhancing transparency are implemented. Stricter regulations should also be enforced for political parties to disclose their donations and allow the Election Commission of India (ECI) to examine both the donation and expenditure. Continuous monitoring, periodic reviewing, and public engagement are also recommended to adapt to emerging concerns and maintain an inclusive decision-making process.