Press Release

Date: 6th Sept, 2017

Analysis of Income & Expenditure of BJP & INC for FY- 2015-2016

 

This report, prepared by Association for Democratic Reforms (ADR) focuses on Income and Expenditure of Bharatiya Janata Party (BJP) and Indian National Congress (INC), during the Financial Year 2015-16, as submitted by the parties to the Election Commission of India (ECI).

This report should be read in conjunction with the analysis of income and expenditure for FY 2015-16 declared by the other National Parties (less BJP & INC) which was released by ADR on 9th May, 2017

For details of share of donations above Rs 20,000 in total donations to the party, top sources of income and top items of expenditure of the parties, please refer to the detailed reports in English and Hindi attached herewith.

Executive Summary

  • The due date for submission of annual audited accounts for the parties was 30th Oct,’16.
  • AITC, CPM and BSP were the only three National Parties to submit the audit reports on time.
  • BJP submitted its audit report on 29th May, 2017 and INC on 11th July, 2017, almost six months after the due date for submission.

Total Income and Expenditure of National Political Parties for - FY-2015-2016

  • Total income of the 7 National Parties for FY 2015-16 was Rs 1033.18 cr of which the parties spent Rs 754.45 cr and declared an unspent amount of Rs 278.73 cr (26.98% unspent of total income). 
  • BJP’s total declared income was Rs 570.86 cr out of which 23.13% (Rs 132.06 cr) remained unspent by the party.
  • INC declared a total income of Rs 261.56 cr during FY- 2015-16, but 26.11% (Rs 68.30 cr) was declared unspent by the party.

Total Income of National Parties FY 2015-2016

  • The 7 National Parties have declared a total income of Rs. 1033.18 cr, collected from all over India.
  • BJP has shown the highest income amongst the National Parties with a total income of Rs 570.86 cr during FY 2015-16. This forms 55.25% of the total income National Parties, together during FY 2015-16.
  • INC declared the second highest income of Rs 261.56 cr which forms 90.28% of the total income of the National Parties.

 

Comparison of total income of BJP & INC between FY 2014-15 and 2015-16

  • The income of BJP during FY 2014-15 was highest among all the National Parties. The party had declared a total income of Rs 970.43 cr and its income decreased by 41.17% to Rs 570.86 cr during FY 2015-16.
  • Income of INC was second highest during FY 2014-15 with Rs 593.31 cr but the party also declared a decrease of 55.92% to Rs 261.56 cr during FY 2015-16.

Unknown sources of income of BJP & INC for FY- 2015-2016

  • Total income of BJP & INC during FY 2015-16: Rs 832.42 cr.
  • Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission): Rs 97.27 cr, which is 11.69 % of the total income of the 2 National parties during FY 2015-16.
  • Total income of BJP & INC from other known sources (e.g., sale of assets, membership fees, bank interest, sale of publications, party levy etc.): Rs 88.33 cr, or 10.61% of total income.
  • Total income of BJP & INC from unknown sources (income specified in the IT Returns whose sources are unknown), for the FY 2015-16 is Rs 646.82cr, which is 77.70% of the total income of the 2 parties from all over India.

Details of unknown sources of income as declared by the parties in their IT Returns

  • Among the unknown sources of funding, maximum funds were collected under “Voluntary Contributions” by BJP during FY 2015-16. A total of Rs 459.56 cr was collected under “Voluntary Contributions” by which formed 80.5% of the total income from unknown sources of BJP.
  • The most preferred unknown source of funding for INC was “Sale of coupons” under the party collected a total of Rs 167.96 cr which formed 25.97% of the party’s total income from unknown sources during FY 2015-16.

 

Recommendations of ADR

  • The Supreme Court gave a judgment on September 13, 2013 declaring that no part of a candidate’s affidavit should be left blank. Along the same lines, we recommend that the Election Commission India impose rules that no part of the Form 24A submitted by political parties providing details of donations above Rs 20,000 should be left blank.
  • Full details of all donors should be made available for public scrutiny under the RTI. Some countries where this is done include Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan. In none of these countries is it possible for 75% of the source of funds to be unknown.
  • Any party which does not submit its IT returns or donation statement to the ECI on or before the due date, their income should not be tax-exempted and defaulting parties should be derecognized.
  • Those parties not following the ICAI guidelines for auditing of reports should be scrutinized by the IT department.
  • The National political parties must provide all information on their finances under the Right to Information Act. This will only strengthen political parties, elections and democracy.
The report can be accessed from here.
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