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.
