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62% of income of national parties came from donations, identity remains anonymous

Between FY 2019-20 and 2020-21, the income of BJP decreased by 79.24% (Rs 2870.943 cr) from Rs 3623.28 cr in FY 2019-20 to Rs 752.337 cr in FY 2020-21; income of INC decreased by 58.11% (Rs 396.445 cr) from Rs 682.21 cr in FY 2019-20 to Rs 285.765 cr in FY 2020-2, says the National Election Watch, Association for Democratic Reforms, analysis of income and expenditure of national political Parties for FY 2020-21:

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 all-National Parties during FY 2020-21, 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 2020-21

The due date for submission of annual audited accounts for the parties was 31st October, 21.
All National Parties (BSP, AITC, CPM, NPEP, NCP, INC, CPI and BJP) submitted their audit reports after a delay ranging from 59 days to 201 days.

Total Income and Expenditure of National Political Parties for FY 2020-21

BJP declared a total income of Rs 752.337 cr during FY 2020-21, but spent only 82.46% (Rs 620.398 cr) of the total income. INC’s total income was Rs 285.765 cr while the party spent Rs 209 cr, thus, party’s expenditure for that year is 73.14% of its total income.
AITC’s total income was Rs 74.417 cr while the party spent Rs 132.537 cr, which exceeds its income for that year by 78.10%.

Total Income of National Parties for FY 2020-21

8 National Parties (BJP, INC, CPM, NCP, BSP, AITC, CPI and NPEP) have declared a total income of Rs 1373.783 cr, collected from all over India.
BJP has shown the highest income amongst the National Parties, an income of Rs 752.337 cr during FY 2020-21. This forms 54.764% of the total income of 8 National Parties during FY 2020-21.
INC declared the second highest income of Rs 285.765 cr which forms 20.801% of the total income of the 8 National Parties.

Comparison of total income of National Political Parties between FY 2019-20 & FY 2020-21

Between FY 2019-20 and 2020-21, the income of BJP decreased by 79.24% (Rs 2870.943 cr) from Rs 3623.28 cr during FY 2019-20 to Rs 752.337 cr during FY 2020-21.
Income of INC decreased by 58.11% (Rs 396.445 cr) from Rs 682.21 cr during FY 2019-20 to Rs 285.765 cr during FY 2020.21.
Between FY 2019-20 and 2020-21, the income of AITC, NCP, BSP, CPI and NPEP decreased by 48.20% (Rs 69.259 cr), 59.19% (Rs 50.659 cr), 9.94% (Rs 5.789 cr), and 67.65% (Rs 4.452 cr) and 62.91% (Rs 1.184 cr), respectively.

Top 3 sources of income of National Parties for FY 2020-21

National Parties have declared donations/contributions as one of their 3 main sources of income.
National Parties that received highest income from donations/contributions include BJP – Rs 577.974 cr, include INC – Rs 95.424 cr, CPM – Rs 95.294 cr, AITC – Rs 42.214 cr, NCP – Rs 26.261 cr and NPEP – Rs 67.17 lakhs.
Collection by Issuing Coupons of Rs 156.907 cr declared by INC form 54.91% of its total income during FY 2020-21.

Top 3 items of expenditure of National Parties for FY 2020-21

The maximum expenditure for BJP has been towards Election/General Propaganda which amounted to Rs 421.014 cr followed by expenses towards Administrative Costs, Rs 145.688 cr.
The maximum expenditure for INC has been towards Election Expenditure which amounted to Rs 91.358 cr followed by expenses towards Administration and General Expenses, Rs 88.439 cr.
AITC spent the maximum of Rs 90.419 cr on Election Expenditure followed by expenditure of Rs 3.96 cr on Administrative and General Expenses.

All sources of income declared by National Parties, FY 2020-21

3 National parties namely BJP, INC and AITC collected 5.42% (Rs 74.46 cr) of their total income from donations through Electoral Bonds for FY 2020-21.
AITC received donations through Electoral Bonds worth Rs 42.00 cr, BJP received Rs 22.385 cr and INC received Rs 10.075 cr.
During FY 2020-21, 6 National Parties, declared receiving an income from Donations/Contributions, a total of Rs 763.379 cr.

Observations of ADR

BSP, AITC, CPM, NPEP, NCP, INC, CPI and BJP parties submitted their audit reports after a delay of 59 days to 201 days.
The most common and popular items of expenditure for National parties for FY 2020-21 are election expenses and administrative/general expenses.
As per the data shared by SBI in response to ADR’s RTI application, Electoral Bonds worth Rs 1019.73 cr were redeemed by parties in FY 2020-21.
In FY 2020-21, there are 8 National and 31 Regional parties whose audit reports are available on the ECI website. Only 8 parties (3 National and 5 Regional) have declared donation through Electoral Bonds Rs 325.06 cr. (BJP- Rs 22.385 cr, AITC- Rs 42.00 cr and INC- Rs 10.075 cr, YSR-Congress- Rs 96.25 cr, DMK- Rs 80.00 cr, BJD- Rs 67.00 cr, AAP- Rs 5.95 cr and JDU- Rs 1.40 cr).
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 as well. 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.
During FY 2020-21, out of the 8 National parties, only 3 Parties (INC-Rs 156.9075 cr, NCP- Rs 8.20 cr and CPM- Rs 4.408 cr) declared receiving a total income of Rs 169.515 cr from Sale of Coupons.

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