Bharat Rashtra Samithi (BRS), despite being in opposition for one-third period of FY 2023-24, emerged as the wealthiest regional party declaring Rs 685 crore in income—accounting for 27% of the total income reported by all 40 regional parties analysed by the Association for Democratic Reforms (ADR).

The findings were released on Wednesday. According to the ADR report, the combined income of regional parties stood at Rs 2,532 crore, with BRS leading at Rs 685 crore, followed followed by the Trinamool Congress at Rs 646 crore and the Biju Janata Dal at Rs 297 crore. The BRS reported Rs 254 crore in expenditure, leaving a balance of over Rs 430 crore

The report links frequent donations from Hyderabad-based companies and electoral trusts to BRS's dominance in south India's political funding landscape. Among the top donors were corporate entities such as Rajapushpa Properties and Hetero.

Notably, several BRS leaders have faced tax raids regarding unaccounted incomes linked to political donations, further intensifying scrutiny.

In sharp contrast, the YSR Congress Party (YSRCP) declared an income of Rs 191 crore but reported the highest expenditure among regional parties at Rs 295 crore, overshooting its income by 54%.

ADR pointed out that YSRCP was one of 12 parties to spend beyond their earnings in 2023-24, raising concerns about financial sustainability and transparency.
Telugu Desam Party (TDP) declared an income of Rs 285 crore and expenditure of Rs 121 crore. ADR's analysis revealed that TDP experienced a significant year-on-year income surge, growing by Rs 221 crore from the previous fiscal.

The ADR report also flagged widespread non-compliance in income reporting. While 20 parties submitted audit reports were still unavailable even after 313 days past the deadline.

To address these lapses, ADR recommended that the Election Commission ensure no section of form 24A—detailing donation above Rs 20,000—is left blank and that defaulting parties be derecognised if income tax returns are not filed promptly. It further urged the income tax department to scrutinise parties not adhering to the ICAI's audit guidelines.