Election Commission launches portal for parties to file financial statements
Recently the Election Commission of India (ECI) has launched a web portal to facilitate online filing of financial accounts for political parties.
The new web-portal facilitates online submission of contribution reports, audited annual statements, and details of expenditure incurred during elections to the ECI by all political parties.
This will enhance the level of financial compliance and transparency of political parties. This is a part of ECI’s 3C strategy – Clean-up, Crack-down and Compliance.
Further, it will remove the difficulties faced by political parties in filing reports physically (hard copy). Also, ensure timely and timely submission of financial statements in the prescribed/standardized format.
The submission of financial statements by political parties to the ECI is as per the provisions of the Representation of the People Act (RPA), 1951.
Why is there a need for transparency in the funding of political parties?
- This will reduce the use of black money in politics.
- Participation of women and other disadvantaged groups in elections will be encouraged.
- The independence of the parties will be guaranteed from undue influence of big donors and corporates.
Issues related to funding of political parties-
- Section 77 of the RPA, 1951 and the Conduct of Elections Rules, 1961 set limits on election expenditure for candidates only. No such limit has been prescribed in the case of expenditure of a political party.
- No cap on corporate donations paves the way for crony capitalism.
- Crony capitalism: An economy in which the success of business depends on a nexus between businessmen and government officials.
- The opaque nature of electoral bonds can harm free and fair elections.
Source – The Hindu
