Issues with Electoral Funding
Financial accountability has remained the main concern of many electoral reforms. Many reforms such as reducing the ceiling of cash donation from Rs. 20,000 to Rs. 2,000 under Section 29C(1)(a) of the RPA, 1951, disclosure of IT returns of political parties to public under RTI etc. have been undertaken with respect to electoral funding. However, electoral funding is still afflicted by various issues such as:
- Opacity in donations: Political parties receive majority of their funds through anonymous donations (approximately 70%) through cash. In addition, parties are exempted from income tax, which provides a channel for black money hoarders.The 255th Law Commission ....
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