Political parties can now receive anonymous donation of just Rs 2,000 -Governance Now

Political parties can now receive anonymous donation of just Rs 2,000

This is a major reform in the system that can bring in transparency in funding of parties and thus address the root cause of corruption in India.

GN Bureau | February 1, 2017

#reform #Rs 2000 #transparency #anonymous donations #Political parties

The political parties can receive donation of only Rs 2000 from anonymous sources. This was announced by finance minister Arun Jaitley in his budget speech.

This constitutes a major reform in the system that can bring in transparency in funding of parties and thus address the root cause of corruption in India.

So far, political parties were not required to disclose the source of their funds to the tune of Rs 20,000, while filing their annual returns. Some of the cash rich parties like the Bahujan Samaj Party (BSP) of Mayawati, in fact, had claimed that it had nothing to declare since all its funding was from small donors who have paid Rs 20,000 each.

Members welcomed Jaitley’s announcement as he said this step was in line with the recommendation of the Election Commission for cleansing the electoral system.

Besides, he said, the Reserve Bank of India will also issue electoral bonds which the donors can purchase and give to their favourite political party without getting identified. The political parties can redeem these bonds within a stipulated time. He said, for this, the RBI Act would have to be amended.

Jaitley also said the system for digital donations will be set up soon.

Comments

Other News

Dharmendra Pradhan tenders resignation

Dharmendra Pradhan, education minister at the centre of the storm of the NEET paper leak, offered his resignation to the prime minister on Saturday. He posted a two-page letter on X, saying he was pained by the events of the last ten days. "This is not a matter of personal

Cabinet approves scheme of chemical parks

The union cabinet chaired by the PM has approved Bharat Audyogik Vikas Yojana Rasayan or BHAVYA - Rasayan Scheme for establishing three dedicated Chemical Parks in the country. The Scheme was announced in the Union Budget of FY 2026–27. The Scheme will have a total financ

Anurag Jain, IAS appointed as Chief Executive Officer, NITI Aayog

Anurag Jain, a 1989-batch IAS officer of the Madhya Pradesh cadre, has been appointed as the Chief Executive Officer (CEO) of NITI Aayog for a two-year term after serving as the Chief Secretary of Madhya Pradesh. A distinguished administrator with extensive experience in infrastructure, industrial de

Shri Ashok Barnwal, IAS has been appointed as the Chief Secretary of Madhya Pradesh

Ashok Barnwal, a 1991-batch IAS officer of the Madhya Pradesh cadre, has been appointed as the Chief Secretary of Madhya Pradesh, succeeding Anurag Jain following his appointment as CEO of NITI Aayog. Prior to assuming the state`s top bureaucratic position, Barnwal served as Additional Chief Secretar

PM announces fast-track courts for paper leak cases

Prime minister Narendra Modi on Thursday stated that the government has decided to set up fast-track courts to ensure swift and stringent punishment for those involved in paper leaks. Emphasising that nothing is more important than the welfare and future of the youth, he noted that h

Making India’s textile & apparel sector sustainable

India’s textile and apparel sector sits at the heart of the economy but is constrained by traditional manufacturing approach. It contributes close to 2% of GDP and around 11% of manufacturing gross value added, with GDP share expected to reach 5% by the end of the decade. The sector employs around 45