Lowering the limit for anonymous cash donations from Rs 20,000 to Rs 2,000, as announced in the Budget will only make political funding more opaque, experts and critics said at a special seminar on Transparency and Accountability in Political Parties' on Saturday.

Founding member of Association of Democratic Reforms (ADR) Professor Jagdeep Chhokar said most parties that don't want to declare the identity of their donors, will now convert donations into even smaller amounts such as Rs 1,999.

"Close to 70% of political funding is from unknown sources. Political parties get exemption in income tax and many other benefits in terms of land and housing which amounts to considerable public resources. They are bound to give information to public," said Chokkar.

Former CM Sureshbhai Mehta claimed that the biggest concern was how the government and ruling political party maintain secrecy in their crucial decisions while allotting public resources to private entities. "Political parties don't adhere to democratic principles within their own organizations. How can they uphold electoral reforms?" asked Indukumar Jani from Naya Marg.