Press Release: Electoral Bonds worth Rs 3429.5586 cr were redeemed by parties in FY 2019-20. Of this, 87.29% was received by four National Parties – BJP, INC, AITC & NCP.

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Aug 27, 2021, 2:34:37 AM8/27/21

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Press Release

Date: 27^th August, 2021

Analysis of Income & Expenditure of National Political Parties for FY 2019-20

The detailed reports in English and in Hindi are attached herewith. To access the reports on the website, please go to: https://adrindia.org/content/analysis-income-and-expenditure-national-parties-fy-2019-20

Executive Summary

Political parties have multiple sources of funding and thus accountability and transparency should be an important aspect of their functioning. It is essential to have comprehensive and transparent accounting methods and systems which should reveal the true financial position of the parties.

The Election Commission of India (ECI), in its letter dated 19th November,’14 addressed to the Presidents/General Secretaries of all political parties, stated that it was mandatory for the parties to submit details of their audited reports to the Commission. This report analyses the total income and expenditure incurred, all over India, by the National Parties during FY 2019-20, as declared by the parties in their IT Returns submitted to the ECI.

The National Parties include Bharatiya Janata Party (BJP), Indian National Congress (INC), Bahujan Samaj Party (BSP), Nationalist Congress Party (NCP), Communist Party of India (CPI), Communist Party of India (Marxist) (CPM), All India Trinamool Congress (AITC) and National People’s Party (NPEP).

Status of submission of audited reports by the National Parties, FY 2019-20

The due date for submission of annual audited accounts for the parties was 30^th June,’21, which was an extended deadline keeping in view the Covid-19 pandemic.

INC, NCP, CPI, AITC, CPM and BSP submitted their audit reports on time while BJP submitted after 21 days, while the audit report of NPEP is still not available in public domain – 57 days have passed since the due date for submission.

Total Income and Expenditure of National Political Parties for FY 2019-20

BJP declared a total income of Rs 3,623.28 cr during FY 2019-20, but spent only 45.57% (Rs 1,651.022 cr) of the total income. INC’s total income was Rs 682.21 cr while the party spent Rs 998.158 cr, which exceeds its income for that year by 46.31%.

AITC declared a total income of Rs 143.676 cr during FY 2019-20, and spent Rs 107.277 cr (74.67%) of it.

Total Income of National Parties for FY 2019-20

7 National Parties (BJP, INC, CPM, NCP, BSP, AITC and CPI) have declared a total income of Rs 4758.206 cr, collected from all over India.

BJP has shown the highest income amongst the National Parties, an income of Rs 3623.28 cr during FY 2019-20. This forms 76.15% of the total income of 7 National Parties during FY 2019-20.

INC declared the second highest income of Rs 682.21 cr which forms 14.34% of the total income of the 7 National Parties.

Comparison of total income of National Political Parties between FY 2018-19 & FY 2019-20

Between FY 2018-19 and 2019-20, the income of BJP increased by 50.34% (Rs 1213.20 cr) from Rs 2410.08 cr during FY 2018-19 to Rs 3623.28 cr during FY 2019-20.

Income of INC decreased by 25.69% (Rs 235.82 cr) from Rs 918.03 cr during FY 2018-19 to Rs 682.21 cr during FY 2019-20.

Between FY 2018-19 and 2019-20, the highest percentage increase in income was declared by NCP of 68.77% (Rs 34.873 cr) from Rs 50.71 cr during FY 2018-19 to Rs 85.583 cr during FY 2019-20.

Top 3 sources of income of National Parties for FY 2019-20

National Parties that received highest income from donations/contributions include BJP – Rs 3427.775 cr, INC – Rs 469.386 cr, AITC – Rs 108.548 cr, CPM – Rs 93.017 cr and CPI – Rs 3.024 cr.

Voluntary Contributions of Rs 3427.775 cr declared by BJP forms 94.60% of its total income during FY 2019-20.

Declaration of Rs 469.386 cr under Grants/ donations/ contributions by INC forms the top most income of the party, contributing 68.80% of its total income during FY 2019-20.

AITC, CPM, NCP and CPI declared the highest income from grants/donations/voluntary contributions worth Rs 108.548 cr, Rs 93.017 cr, Rs 83.3625 cr and Rs 3.024 cr, respectively.

Top 3 items of expenditure of National Parties for FY 2019-20

The maximum expenditure for BJP has been towards Election/General Propaganda which amounted to Rs 1352.928 cr followed by expenses towards Administrative Costs, Rs 161.54 cr.

INC spent the maximum of Rs 864.035 cr on Election Expenditure followed by expenditure of Rs 99.393 cr on Administrative and General Expenses.

NCP, AITC and BSP also incurred the maximum spending on Election Expenditure of Rs 84.126 cr, Rs 74.65 cr and Rs 51.756 cr, respectively.

All sources of income declared by National Parties, FY 2019-20

4 National parties namely BJP, INC, AITC and NCP collected 62.92% (Rs 2993.826 cr) of their total income from donations through Electoral Bonds for FY 2019-20. BJP received donations through Electoral Bonds worth Rs 2555.0001 cr, INC received Rs 317.861 cr, AITC received Rs 100.4646 cr and NCP received Rs 20.50 cr.

During FY 2019-20, 6 National Parties, declared receiving an income from Donations/Contributions, a total of Rs 1191.285 cr.

Observations of ADR

Audit report of BJP was available on the ECI website after a delay of 21 days from the extended deadline. Audit report of NPEP for FY 2019-20 is still unavailable on the ECI website even though 57 days have passed since the due date (June 30, 2021).
The most common and popular items of expenditure for National parties for FY 2019-20 are election expenses/general propaganda and administrative/general expenses.
Given the anonymity provided to donors by the scheme, it is seen that Electoral Bonds have emerged as the most popular mode of donations to National Political parties for FY 2019-20. More than 62% of the total income of seven National Parties came from Donations through Electoral Bonds (Rs 2993.826 cr), wherein identity of the donor is not disclosed to the public. Of the Regional parties that have submitted their audit reports, 14 Regional Parties (TRS, TDP, YSR-C, BJD, DMK, SHS, AAP, JDU, SP, JDS, SAD, AIADMK, RJD & JMM) have declared receiving donations through Electoral Bonds worth Rs 447.498 cr.
As per the data shared by SBI in response to ADR’s RTI application, Electoral Bonds worth Rs 3429.5586 cr were redeemed by parties in FY 2019-20. Of this, 87.29% was received by four National Parties – BJP, INC, AITC & NCP. The total amount of Electoral Bonds declared by National and Regional parties for FY 2019-20 so far is Rs 3441.324 cr. The difference in the amount declared by political parties and data on EBs redeemed received from SBI could be due to the manner in which parties report in their audit report. For example: AAP declared donations from electoral bonds under the head “Others (Electoral Bonds/Electoral Trust)”. It may also be noted that audit reports of many other Regional parties are not yet available in the public domain. Once this data is available and subsequently if these parties declare receiving donations via Electoral Bonds, the total share of donations received from Electoral Bonds may increase further.
Some of the National parties have expressed great concern and have been highly critical of the Electoral Bonds Scheme, 2018. They criticize the scheme at every public debate possible. In its election manifesto for the 2019 Lok Sabha elections, INC declared that it would scrap the Electoral Bonds Scheme if it is voted to power. However, it is ironic that the same parties continue to accept donations via Electoral Bonds. This displays the double standards adopted by some political parties.