Mayawati led BSP increases its income by 266.32%

Nearly half of the party income comes from donation

GN Bureau | February 7, 2018


#Political Parties Income   #ADR   #Mayawati   #BSP   #Bahujan Samaj Party  


While the BJP and the Congress are yet to send their audit reports to the Election Commission of India, Mayawati's Bahujan Samaj Party (BSP) has emerged out having highest income of Rs 173.58 core during 2016-17. Surprisingly, the party could spend only only 30 percent (Rs 51.83 cr) of the total income.

Out of the total income, 43.36 percent has come from donation, contribution and grant, fee and subscriptions amount to 37.23 percent adn bank interest includes 19.41 percent, reveals a study by the ADR (Association For Democratic Reforms).

The party has declared that it has spent a maximum of 40.97 crores on  elections, while approx 10 crores on administrative and general expenses.

Between 2015-16 and 2016-17, the income of Mayawati led party has increased by 266.32% (Rs 126.195 crores) from Rs 47.385 cr during 2015-16 to Rs 173.58 cr during 2016-17.

Meanwhile, AITC declared a total income of Rs 6.39 crore during 2016-17, but spent an excess of Rs 17.87 crore (280%) over total income. The NCP also incurred an excess expenditure of Rs 7.732 cr over its total income of Rs 17.235 cr, during FY 2016-17.

Here is what ADR recommends:
 

  • According to the Finance Bill, 2017, Section 13A of the IT Act was amended to state that tax exemption will be given to registered political parties “Provided also that such political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) of section 139 on or before the due date under that section.” Thus, any party which does not submit its IT returns on or before the due date, their income should not be tax-exempted and defaulting parties should be de-recognized.
  • 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.
  • The Supreme Court gave a judgment on September 13, 2013 declaring that no part of a candidate’s affidavit should be left blank. Along the same lines, we recommend that the Election Commission India impose rules that no part of the Form 24A submitted by political parties providing details of donations above Rs 20,000 should be left blank.
  • Those parties not following the ICAI guidelines for auditing of reports should be scrutinized by the IT department.
  • The National political parties must provide all information on their finances under the Right to Information Act. This will only strengthen political parties, elections and democracy.


 

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