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Reasons of Illegal Funding in Elections


The main reason normal person is not able to participate in elections is the procurement of a huge sum of money to stand in elections. A middle class person is not able to collect so much money or procure a loan so that he can manage to even stand in the municipal elections.

During the discussions on the movement of Anna Hazare ji, in a popular news channel recently, a new debate started. It was the illegal funding of elections whether they are general elections or state elections. It takes a lot of money to stand in elections.These pre-requisites for elections lead to illegal funding in elections.

The main reason normal person is not able to participate in elections is the procurement of a huge sum of money to stand in elections. A middle class person is not able to collect so much money or procure a loan so that he can manage to even stand in the municipal elections.

The main drawbacks of general funding of elections are as follows:

Prevalence of black money


Nowadays black money has become a reality.Black money as its name suggests is the money that is accumulated from illegal or unlawful means.This kind of money is never accounted for.It is a huge loss for the country because no income tax is paid against it because no accounts are maintained for the cash.It has become the core of any business and one cannot do business or work without it.The candidates freely use black money during the elections and there is hardly any white money involved. The use of black money is so evident that even a slightest hint of making a law against use of black money makes the stock markets crash. There is a considerable amount of money in the stock market that comes from other countries through Foreign indirect investment.They often come from unknown sources or means.

Funding by industrialists and corporates


Big industrialists and corporate houses often are in the back of the candidates. It means that they render huge sum of money to the candidates with the aim of future gains. If they get elected in subsequent elections, they give many kinds of favours to corporates in return such as tax-relief, illegally passing tenders to them, influencing their peers to favour their lenders etc. The funds are taken in the form of cash or kind in the form of donations. It is a clear way of taking money from others because it is not prohibited by any rule of law. Many ministers nowadays openly take huge sums in the form of donations from big corporate houses and spend it for their personal use. Ministers have not many sources to pay them back so they resort to corruption.

Cycle of corruption


Use of black money regenerates black money. Why, because to repay that sum, ministers do illegal things that promote corruption. They bribe other ministers or beareucrats; favour their lenders by giving them positions of authority, nepotism, etc. Funds for standing in elections or for winning the elections comprise mainly of black money. Candidates do illegal or unlawful things to win elections that in turn again lead to corruption and regeneration of illegal money. It is a vicious cycle that goes on without any stoppage point.



So, there should be government funding and minimum external funding. Government should give,manage and maintain proper accounts of the funds given to the candidates.Also, there should be a minimum as well as maximum amount of money to be used during the elections for each candidate.If there is any external funding, then proper accounting of the funds that are given to them externally should be also done.Government should make strict laws to prevent free use of funds that are not legal or disclosed by the political parties or candidates during the elections in the country.

say no to corruption


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Comments

Author: K Mohan07 Sep 2014 Member Level: Platinum   Points : 4

I think the Indian elections are held with the liberal donations from the big Industrial houses which are actually controlling the political parties with their wide funding. Some of the Industrial house are also taking the Intelligence bureau information as to which party is going to get majority in the elections and which candidate to fund. They are even going to the extent of seeking favours before hand for funding. Thus our every year budget and their planning are actually done as per the funding of big Industries and that is the reason being so our ruling parties cannot take hard decisions.



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