Finance Minister Arun Jaitley injected ray of hope among poll bound voters of Uttar Pradesh, Uttaranchal, Punjab, Manipur and Goa and people of India for clean and transparent politics by lowering individual cash donation limit of political parties from existing Rs 20,000 to Rs 2,000 and introducing Electoral Bonds purchased by individuals and redeemable through registered accounts of political parties.
The twin proposals may not impact current polls, yet the message is clear that the Narendra Modi government is continuing its crusade against black money and corruption even after demonetisation. While they are marginal steps in wider gamut of electoral reforms, it cheers-up peoples’ spirits and puts opposition parties on backfoot as they would not like to oppose it fearing peoples’ adverse reaction.
How this will impact parties? Most parties receive small share of funds through cheques and digital mode; 70 to 80 per cent of fund is received in cash that does not require them to disclose the source. While the proposals may bring transparency in political funding, it does not put them in discomfort zone as they still continue to enjoy exemption under IT Act. However, it may convenience the donor companies or individuals under section 80GGB or 80GGC respectively because they get 100% exemption provided the party is registered with ECI u/s 29A of Representation of People Act 1961.
Parties may see Electoral Bonds as good or bad as cheques or drafts because the consequences of accepting them both would be the same. However, many bogus parties are registered with the ECI; they neither contest polls nor get votes, but are safe refuge for parking black money which they use for wrong purposes under cover of political party. Such parties should not only be denied exemptions under IT Act, but be taxed too after filing returns. Most criminals are now starting parties and getting their gangs registered with ECI as party functionary. Has the FM any answer to them?