The Election Commission is not in favour of state funding of elections (File photo)

NEW DELHI: The Election Commission is not in favour of state funding of elections as it will not be able to prohibit or check candidates’ own expenditure over and above that provided by the state, the government told the Lok Sabha on Monday.

In written reply, minister of state for finance Anurag Thakur said EC ’s view is that for addressing the real issues relating to political funding and need for complete transparency, there must be radical changes in the provisions relating to receipt of funds by political parties and the manner in which such funds are spent. “The Election Commission has informed the Government that it is not in favour of state funding as it will not be able to prohibit or check candidates own expenditure or expenditure by others over and above that which is provided for by the state,” the minister stated.

While the Indrajit Gupta panel had in 1998 justified state funding of elections, it recommended that this benefit be limited to recognised national and state parties. It also recommended that state funding be in kind in the short term. In fact, EC did accept this by allowing airtime to recognised national and state parties for campaigning on state media.

The Law Commission report in 1999 said state funding of elections was “desirable” provided that political parties are prohibited from taking funds from other sources. Thakur on Monday told the Lok Sabha that that the government, to discourage cash transactions and bring in transparency in the source of funding of political parties, had amended the Income Tax Act and limited anonymous cash donations to Rs 2,000.

He also pointed out that the government had introduced the ‘Electoral Bond Scheme 2018’ to establish a transparent political funding system in the country, with well-established audit trail.

