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In a major move aimed at increasing transparency and accountability in donations received by political parties, Union Finance Minister Arun Jaitley, presenting the Union Budget 2017 on Wednesday, announced that parties will not be allowed to accept donations of more than Rs 2000 in cash from an individual donor.
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All parties will be entitled to receive donations by cheque or through digital mode, Jaitley said. He also announced that an amendment is being proposed to the Reserve Bank of India Act to enable the issuance of electoral bonds. Under this scheme, a donor can purchase bonds from authorised banks and redeem them in the registered accounts of a political party. These bonds will be redeemable within the prescribed time limit from issuance of bond, Jaitley said.
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Speaking to reporters outside Parliament, Congress vice-president Rahul Gandhi said that he will support all steps taken by the government to make political funding transparent. Hailing the move, Union Minister Nitin Gadkari said that black money will now stay out of political parties and only honest people will enter electoral politics. “It’ll bring our economy at number one position, it’s revolutionary change; This budget will bring transparency in politics,” Gadkari said.
Besides, the Budget proposed an amendment to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the government would frame in this regard.
“Under the scheme, a donor could purchase bonds from authorised banks against cheque and digital payments only. They shall be redeemable only in the designated account of a registered political party. These bonds will be redeemable within the prescribed time limit from issuance of bond,” Jaitley said. Also, political parties have to file returns.
Political parties would know who has given the money and they will disclose in returns how much bonds they have got. “Bonds will be bought through cheque and bonds will be encashed with banks. It will be clean money and … transparent, as the buyer is known,” Jaitley said.
(with inputs from PTI)
