Political Funding -PDD

Political Funding

Let’s first accept that Politics is a legitimate activity, as it helps organize the life of citizens, saving them time, effort, accidents, injustices and conflicts. Otherwise, people will act and have acted in the past tribally resorting to the law of jungle, driven by instinct and arbitrariness, fighting and killing.

Therefore, the political structures must be supported individually and collectively. 

In the current scenario it is incumbent upon the political parties as well to convince the Citizens that they are primarily working to fulfill that mandate. 

Arguably, the citizens have to proactively convey their concerns and issues to their political representatives and seek to influence public policies.  Citizen Participation has to be much more than just voting-including financial support.

Given the above backdrop our laws must consider Political Organizations as Socially relevant Institutions. In some ways, the Political Parties are treated on the same levels as NGOs and Charitable Organizations and Trusts. However the disclosure requirements are not as rigorous 

Since the Political Parties are charged with the responsibility of developing Vision and Strategy for whole of the Country, these may be treated above NGOs and trusts: They develop policy which is akin to “research and development”

Therefore, the following steps are suggested – i.e. to get the donors and political parties out of the perverse addiction to ‘black money’. It is axiomatic that a large part of the political funding comes from businesses /corporates: 

1)      Political Funding is currently allowed as a legitimate expenditure by corporates, i.e. 100% of the donation is charged to P&L.

2)      Allow a deduction of 200% as “Policy development Deduction”

3)      This additional deduction will encourage the corporates to weather the adverse consequences and/or develop strategies to manage the competing political forces.  

4)      A case has been made out for State Funding of elections/ political parties. Well, this is a step in that direction; state funds Rs 30 for every Rs 100 collected/ attracted by a political entity thru its efforts/ attractiveness to the donors.

5)      Commence placing easy disclosure requirements on Political parties, and ratchet them up annually to achieve full disclosures in say 10 years.    

We will possibly achieve a reasonably clean and transparent political funding system and inflict a hefty blow ( I wish it was a death blow) on the black economy- in 10 years.