Sunday 19 April 2015

12) It is argued that state funding of political parties can help end corruption. Do you think public funds should be used for this purpose? Substantiate.

Ans1:
Elections in India are costly affair for both who contest and who conduct.
A Recent Study on Black Money submitted to the Finance Ministry shows that established parties like Congress, BJP, and others received 75 to 100 percent of their donations in cash in denomination of less than 20,000 each from unknown sources.In 1998, the Indrajit Gupta Committee on State Funding of Elections and 2008, Administrative reforms Commission endorsed Partial state Funding of election, LCI report of 1999 expected to total state funding "if political parties are prohibited from taking funds from other sources".
Though, NCRWC (2001) did not endorse such plan.State Funding of polls would be a lost battle unless political parties make way for inner-party democracy that allows good and meritorious members to get poll tickets.Without preventing parties from raising private funds, the state funds could end up topping up thecoffers of already - rich parties.So, state funding would succeed only when it is total and not partial, because there is no guarantee that even after it was introduced, rich parties and candidates would not pump black money into campaigns to boost their chances of victory.
In my view instead of using state funds to end corruption, we need strong Lokpal and break on flow of Black Money into political parties.

Ans2:

Answer: Election has become a money game where large parties with their deep pockets contest election with much fanfare, spending to attract voters, while smaller parties find it difficult to show their presence. The amount of money spent on election by political parties is huge and black money obtained from Criminals, Corporates and Contractors(3 Cs) so that they will get kickbacks once party is in power. On closer look we can see that, all these are public money only which are amassed by 3Cs by illegal means. Hence, if we make election a clean, fair and transparent process of contest, then such money we can find in correct place of project implementation. Hence, both this black money and State funding plan is public money and I find State funding political parties is better because:

1.It will curb corruptions and outside funding of party. It will make election fair, transparent process.

2.Black money from market will reduce which otherwise circulate by substandard development => acquiring wealth => funding election => substandard development.

But, we need to acknowledge that, still the details of how State funding will work, audited, when amount will be paid post/pre elections are unclear. Hence, making a proper plan and implementing it as pilot project is very much required looking at India’s vision of corruption intolerant nation.

Ans3:

Although the poll commission has been opposed to the idea of state funding of elections, I feel the best way out is the state funding of parties. The parties have been showing a fund collection of an average a thousand crore rupees per annum. This can be given by the state. For every vote secured, Rs 100 can be given. In the General Election to the Lok Sabha in 2014, nearly 55 crore votes were cast. At the rate of Rs 100 per vote, this will add up to Rs 5,500 crore. This roughly corresponds to the collection of all parties put together. Private and corporate donations will then be totally banned.

State funding will free the parties from dependence on — and clutches of — the corporate houses who feel tempted to run the government by proxy. Crony capitalism has become a buzzword. An equal amount will be required for the Vidhan Sabha elections.The amount of nearly Rs 12,000 crore in five years to make our democracy corruption free is a negligible price. Indrajit Gupta committee has also recommended the creation of a separate Election Fund with an annual contribution.The image of the political class in India is considered very murky, which is very unfortunate for democracy.

The fund could be administered by an independent Trust or Election Commission. The allocation of funds will be based on the actual performance of parties, whose accounts will be audited by an independent auditor on the ECI approved panel or by CAG. Time has come for India to take the wake-up call. The global model already available makes it the best option.

Ans4:

One of the core reasons why our political system is mired with corruption charges is the lack of fund.Indian democracy thrives on multi-party system and involves huge amount of election expenses for running elections .Its the black money which gets converted into white during election compaigns.
To finance elections the political parties used to depend on corporate donations.however. in 1960's the incumbent government arguing that big corporates exert undue influence on the government and demand favourable return as a quid pro quo, banned corporate donations.
It is in this backdrop that the parties in order to succesfully and competitively contest election turned to black money either provided by individuals or companies.Now black money has become the major source of election financing and in elections baot 75 to 80% finacial donations are unaccounted.
Following the eg of many european countries and to fight the menace of the black money it is proposed time and again to provide a certain amount of state finance.This would help in following manner
-support parties in monetary terms based upon the voter's turnaround
-reduce party's dependence on corporate houses and be able to make their decision impartially
-reduce corruption in election and creating consensus to act against corruption and even adhere to CIC guidelines
However,state funding would be able to finance only the legitimate expenditure and not the unethical and illegal expenditure like sale of liquor,paid news etc and thus might not be able to check use of black money in totality and hence the role of CSO and NGOs becomes important.

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