Donors should be anonymous, Pg9

Key Highlights:

• The BJP received ₹6,088 crore in political funding in 2024-25, a 53% increase from ₹3,967 crore in 2023-24, constituting approximately 85% of total funding.
• The Congress received ₹522 crore, a 54% decrease from ₹1,129 crore in 2023-24, accounting for less than 7% of the total funding.
• Total political funding through electoral bonds amounted to ₹16,308 crore, with the BJP initially receiving ₹8,252 crore (51%) before the scheme was outlawed in February 2024.
• Post-electoral bonds ban, political funding has heavily gravitated towards the BJP, with other opposition parties receiving significantly less funding in 2024-25.

Detailed Insights:

• Before electoral bonds (introduced in March 2018), political funding occurred through direct donations with disclosure or opaque cash donations without disclosure for amounts less than ₹20,000.
• The electoral bond scheme initially ensured a relatively fair distribution of political funding among major parties, including Congress, TMC, BRS, BJD, and DMK.
• The Supreme Court declared the electoral bond scheme unconstitutional in February 2024, leading to the disclosure of donor details and a subsequent shift in funding distribution.
• Indian businesses may prefer donating to the ruling party due to potential benefits like contracts and subsidies, as well as fear of administrative or investigative actions.

Key Concepts Involved:

• Electoral Bonds: Financial instruments used to donate money to political parties.
• Political Funding: Financial resources raised by political parties to fund their campaigns and activities.
• Transparency: The extent to which political funding sources and amounts are publicly disclosed.