Saturday, July 20, 2024

Electoral Bonds boost Indian political transparency

What are electoral bonds? What is the argument against poll funding scheme?  | Latest News India - Hindustan Times

Electoral bonds were introduced in India as a financial instrument to facilitate transparent and accountable political funding. The key reasons for introducing electoral bonds include:

  1. Transparency and Accountability: The primary objective was to bring transparency to political funding by reducing the use of cash in political donations. Electoral bonds were introduced to promote traceability of funds and curb black money in political financing.
  2. Reducing Cash Transactions: Prior to the introduction of electoral bonds, political parties often received donations in cash, making it difficult to track the sources of funding. Electoral bonds aimed to shift towards a more formal and transparent system, discouraging the use of unaccounted cash.
  3. Encouraging Legitimate Donations: Electoral bonds were designed to encourage legitimate and legal donations to political parties. By channeling contributions through banking channels and requiring the purchase of bonds from designated banks, the government sought to ensure that the funding process is in compliance with legal and regulatory frameworks.
  4. Avoiding Discrimination: Electoral bonds were intended to create a level playing field for political parties, ensuring that they receive financial support based on a transparent mechanism rather than through undisclosed, informal channels that might lead to favoritism or discrimination.

While the introduction of electoral bonds aimed to address some of the challenges associated with political funding, the system has also faced criticism and concerns regarding the potential anonymity of donors and the impact on transparency. Critics argue that the scheme falls short of providing complete transparency as the identity of the donor is not disclosed publicly. The debate on the effectiveness and transparency of the electoral bonds system continues in India.

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