While the rest of the world has switched to plastic, political parties still lay premium on cash. Cash collections accounted for a significant 63 per cent of total funds or over Rs 2,100 crore garnered by various political parties during all state assembly polls between 2004 and 2015 and 44 per cent in the last three Lok Sabha elections.
Data analysed by Association for Democratic Reforms (ADR) showed the parties collected Rs 2,107 crore during 71 state assembly elections in this period. During the Lok Sabha elections held in 2004, 2009 and 2014, cheque payments accounted for the highest collection at 55 per cent (nearly Rs 1,300 crore), while cash accounted for Rs 1,039 crore. In state polls, funds collected through cheque payments were Rs 1,244.86 crore between 2004 and 2015.
SP trumped others in terms of amount collected and spent during these state polls. The party collected Rs 186.8 crore and spent Rs 96.54 crore. AAP, which has contested two assembly elections till date, came second with Rs 38.54 crore as total funds collected and Rs 22.66 crore expenditure.
The survey, which details the funds collected and expenditure incurred by regional parties, noted that SP, AAP, AIADMK, BJD and SAD together collected Rs 267.14 crore, 62 per cent of the total funds declared by all the regional parties, during the 2004, 2009, and 2014 Lok Sabha polls.
"SP topped the charts with Rs 118 crore as collection and Rs 90.09 crore as expenditure. Despite contesting only in 2014 Lok Sabha elections, AAP came second in terms of collection by declaring Rs 51.83 crore. AIADMK is placed third with Rs 37.66 crore," ADR said about the three Lok Sabha polls.
The analysis is based on statements submitted by the national and regional parties to the Election Commission of India. These statements contain information of funds collected and spent between announcement and completion of elections.
In terms of expenditure, the reverse is true. In the three Lok Sabha polls, 83 per cent of spending, or Rs 2044.67 crores, was through cheque while this percentage was 65 per cent during assembly polls. "India is the least transparent country when it comes to funding of political parties," Professor Trilochan Sastry of IIM Bangalore, a founder-member of ADR, said.
The survey, which details the funds collected and expenditure incurred by regional parties, noted that SP, AAP, AIADMK, BJD and SAD together collected Rs 267.14 crore, 62 per cent of the total funds declared by all the regional parties, during Lok Sabha polls.
According to EC guidelines, parties should not make any expenditure above Rs 20,000 in cash but there is no provision in the expenditure format for the parties to declare expenses below or above Rs 20,000, ADR said.
"Hence, it appears that the parties are taking advantage of the opacity in the expenditure statements to collect and spend funds in cash," the survey adds.
