India Lowers the Limit of Anonymous Political Donations to Promote Transparency

In a major step to bring about transparency in the political funding, Indian government has declared that political parties can not accept anonymous cash donations of more than Rs 2000 ($29).

New Delhi (Sputnik) — Finance Minister Arun Jaitley, while presenting the Union Budget announced almost 90 percent cut in the limit for cash donations. Jaitley said that political parties can now receive only Rs 2000 as political donation in cash from one source. Last year, Election Commission of India had recommended the lowering of anonymous cash donations to political parties.

As per new rule, the political parties have to disclose the identity of the person for donations of more than Rs 2000 ($29). Earlier, political parties were allowed to receive anonymous cash donations up to Rs 20,000 ($ 296).

The decision is considered as positive move by the government to promote transparency and accountability in the political funding.

“Move to bring transparency in political funding by the government is a welcome move. But simply lowering the limit of political donations may not be sufficient to bring complete transparency in the political funding process,” Sushmita Dev, Member of Parliament of the opposition Congress Party told Sputnik.

While Janata Dal-United leader Sharad Yadav is not optimistic about the government’s move.

“Government’s decision will hardly make any impact on the political funding. In fact, instead of making one anonymous donors, now the political parties will register more donors to compensate the lowering of amount. So its mere an eye wash by the government,” Sharad Yadav told Sputnik.