New Delhi/Shimla- The introduction of Electoral Bonds in India in 2018 marked a significant change in political funding, both in India and globally.
As elections to Lok Sabha draw nearer in 2024, the EBs have electrified debate in India considering how political parties are getting EBs to leverage their financial muscles for the coming electoral battle.
These financial instruments, originally pioneered by a European country, have since been adopted by several nations.
Electoral Bonds are a contentious issue in India, raising concerns about transparency, accountability, and their potential to influence democracy and promote crony capitalism.
The concept of electoral bonds was first introduced in India by the government as a method to cleanse political funding.
However, it was based on a similar system implemented in France several decades ago.
The primary objective was to bring transparency to political donations by facilitating legal contributions from individuals and corporations.
The EBs have both advantages and disadvantages.
It has advantages as Donors can contribute without disclosing their identities, theoretically protecting them from potential repercussions.
Second it brings Transparency for Political Parties.
Political parties can receive legitimate funds through the banking system, enhancing transparency on their end.
It is Legal and Accountable: Contributions are routed through the formal financial system, making them traceable and legal.
EBs have Disadvantages as well.
Lack of Donor Transparency: Critics argue that Electoral Bonds shroud the identity of donors, making it challenging to ascertain who influences political parties.
It has Potential for Quid Pro Quo: There are concerns about political parties favoring donors who use electoral bonds, potentially resulting in a quid pro quo arrangement.
It is an Inequitable System. Smaller parties may struggle to attract electoral bond funding compared to major political players, exacerbating the dominance of established parties.
Othet major defect is EBs Undermine Right to Information (RTI). Some argue that electoral bonds undermine the Right to Information Act by preventing the public from knowing the sources of political funding.
Why Indian Political Parties Embrace Electoral Bonds?
Indian political parties have largely embraced electoral bonds due to the advantages they offer.
The anonymity they provide to donors can be attractive, especially for those who wish to keep their political affiliations discreet.
Besides this these bonds allow political parties to receive large sums of money through legal channels, reducing their reliance on unaccounted funds.
Impact on Democracy and Crony Capitalism
The impact of electoral bonds on democracy remains a subject of debate. While proponents argue that they enhance transparency within the political system, critics contend that they create opportunities for quid pro quo arrangements and may encourage crony capitalism.
The lack of donor transparency makes it difficult for the public to hold political parties accountable for their actions
Electoral Bonds in India have been a topic of significant controversy since their introduction.
While they have brought some level of transparency to political funding, their potential consequences for democracy and crony capitalism continue to raise concerns.
As more than ₹13,500 crores have been donated anonymously through electoral bonds to political parties, the debate over their role in Indian politics is far from over.
It remains to be seen whether electoral bonds will evolve to address these concerns or if they will continue to be a contentious element in India's political landscape.
