The opacity around electoral bonds (Democracy will end if big money goes opaque while funding)

Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!

 The opacity around electoral bonds (Democracy will end if big money goes opaque while funding)

---

Read more on - Polity | Economy | Schemes | S&T | Environment

---

• 2019 disclosure: It was found in Nov. 2019 that both the RBI and Election Commission of India has expressed reservations about the Electoral Bonds scheme.

1. RBI opposed the issue of bearer-bonds by anyone other than RBI, calling it hugely risky as they are like currency!
2. EC warned that this will bring illegal foreign funds into Indian political system!

• Overruled: All objections were overruled and this scheme was bundled with Finance Bill, and passed by the Lok Sabaha in 2017. It bypassed the Rajya Sabha altogether. India is alone in having something like "electoral bonds".
• Why even bother: The role of money in Indian elections in 2019 is far more than it was in the 1950s or 60s. Having no money means defeat, but lots of money does not guarantee success. Parties spend money overtly and covertly (to buy votes) and spend lavishly.
• Role of money: The winning party may choose to work for those that funded it, and not for the voters. Here come issues like public funding, expenditure limits, donations limits, transparency and non-compliance penalties.
• The dangers in electoral bonds: There are many.

1. Voters can never know who purchased the electoral bonds! 
2. Logic given is that donors must be protected from harassment from authorities. But the party in power can do it anytime through CBI, ED etc.
3. The way out is to not harass people and companies. But governments won't listen.
4. The bank (SBI) knows who bought the bonds (purchaser), and gave to whom (the party cashing it). The ruling party can get this info always, and prevent donations to others!
5. All donation limits are removed, so large corporates can simply buy out governments! Spending limits are meaningless as they're never adhered to.
6. Black money cannot be used to buy electoral bonds, but easily outside of it during elections. Reduction in cash donation limit from Rs.20,000 to Rs.2,000 is useless.

• No transparency at all: No political party in India has come forward to disclose all its incomes. No law stops them from doing so!
• Impact of electoral bonds:

1. Ruling party corners most of the funds.
2. The rulers alongwith ED know who gave how much to whom, and public does not know it.
3. Secrecy is detrimental to democracy.
4. Long-term danger is that democracy itself will die if this opacity goes on.
5. NGO registrations are cancelled, but not political party registrations.

• Solutions: There are some simple steps.

1. Total transparency: All funding must be transparent. 
2. RTI: Bring all parties under RTI. The CIC ruled so, and parties refused!
3. Limits: Put spending and donation limits.
4. Voter awareness: Citizens have to rise and ask questions. Small donations are better than corporate ones.
5. Scrap the electoral bonds scheme.

• Summary : The electoral bonds scheme has twisted Indian electoral democracy into a monster fed by money, used by the ruling party, and unleashed on opponents.

Read more on - Polity | Economy | Schemes | S&T | Environment

Join UPSC Self Prep course | Online Course (PT Gurukul)  | Covid Special Course | Join PT courses

* Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged.