Political Funding - 3

Individual Donors

This intervention will be most useful for furthering democratic values in the Citizenry, as it will improve its interaction with the Political system .

Let us provide for a PDD (Policy Development Deduction) to individuals, again 2x of the funds given be allowed as deduction from Taxable Income (U/s Sec 35?).

Now, please visualize a politician approaching individuals/group for funding – who are not averse to funding them as 60% is being paid for Tax deductions. The involvement with politics improves.

Citizen’ concerns get transmitted to the Political establishment more forcefully. The Political power shifts somewhat to Citizenry – the hand that feeds(?)

The Political System, on a back of the envelop basis requires around Rs 6,000 Crores per year which is about 0.0005 or 0.05% of GDP – a pittance.    

The Govt will forego tax revenue of Rs 3,600 Crores, again a sum that will not hurt Countries fiscal situation.

The gains in reduction of Black economy will more than make up for these Tax deductions