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Election campaign funding by political parties

Date: 14 January 2022 Tags: Bills & Laws


The issue of funding for political parties has come to the forefront as elections to five states are set to take place soon.



Election funding is a process though which political parties collect money from certain quarters to fight elections.



It is estimated that candidates spend money in crores for winning an election. The amount varies based on the constituency.


Importance of the issue

  • Government in power is obliged to give benefits to their funder. In correct context, government should work for the benefits of the voters.

  • If government gets funding from other sources, they will ensure that their funder get benefits even if it violates public rights.

  • Even if rich candidates fund their own election, their main focus after winning will be to recover the amount rather than working for the public.


Need for regulating election funding

Election funding is a vital issue as it concerns rights of citizens. Many countries have made rules for managing funding of elections.


Measures to regulate

  • The election funding process can be made completely transparent so that people know who funds elections.

  • There should be cap on the funding provided by private companies to parties so that they do not influence elections or Governments.

  • A level playing field can be created for good candidates having fewer funds by using some part of taxes of citizens for that purpose.


Condition in India

  • Election funding in India is highly opaque. There are no records on contributors to a political party.

  • Political parties have refused to come under Right to Information. Limits on funding are also not well defined. 

  • The funders to the party are not disclosed. Even after repeated attempts, the government has refused to amend the laws and allow such transparency.