Poltical parties have received funds to the tune of Rs 4895.6 crore between 2004 and 2012 and the irony is that 75 per cent of these funds cannot be traced. According to the Association for Democratic Reforms 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.
ADR states that the total income of political parties between 2004-05 and 2011-12 is Rs 4,895.96 crores. Out of this Rs 105.86 crore were obtained as donations from electoral trusts. This would constitute just 2.16 per cent of the total income of political parties.
Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission) is Rs 435.85 crore, 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.) is 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.
The Indian National Congress 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
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).
ADR says that it 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.