Cash collections accounted for a whopping 63 per cent of total funds garnered by various political parties during the State Assembly polls between 2004 and 2015, a study showed on Monday.
The fund collection through cash was, however, relatively lower at 44 per cent (over Rs. 1,000 crore) during three Lok Sabha elections held during this time period.
The data collated by Association for Democratic Reforms (ADR), a Delhi-based think tank working on poll reforms, showed the parties collected Rs. 2107.80 crore during 71 State Assembly elections during this period.
During the Lok Sabha elections held in 2004, 2009 and 2014, cheque payments accounted for the highest collection at 55 per cent (nearly Rs. 1,300 crore), while cash accounted for Rs. 1039.06 crore.
In case of State polls, fund collected through cheque payments was Rs. 1244.86 crore between 2004 and 2015. The study did not take into account the recent polls in four States and Puducherry.
ADR said the analysis is based on statements submitted by the national and regional parties to the Election Commission of India. These statements contain information of funds collected and spent between announcement and completion of elections.
“India is the least transparent country when it comes to funding of political parties,” Professor Trilochan Sastry of IIM Bangalore, a founder-member of ADR, said.
The survey, which details the funds collected and expenditure incurred by regional parties, noted that the SP, AAP, AIADMK, BJD and SAD together collected Rs. 267.14 crore, 62 per cent of the total funds declared by all the regional parties, during Lok Sabha polls.
“SP topped the charts with Rs. 118 crore as collection and Rs. 90.09 crore as expenditure. Despite contesting only in 2014 Lok Sabha elections, the AAP came second in terms of collection by declaring Rs. 51.83 crore. The AIADMK is placed third with Rs. 37.66 crore,” ADR said.
AAP, which has contested two Sssembly elections till date, came second at Rs. 38.54 crore as total funds collected and Rs. 22.66 crore expenditure.
According to the ECI guidelines, parties should not make any expenditure above Rs. 20,000 in cash but there is no provision in the expenditure format for the parties to declare expenses below or above Rs. 20,000, ADR said.
“Hence, it appears that the parties are taking advantage of the opacity in the expenditure statements to collect and spend funds in cash,” the survey adds.
