Some 8 years ago, Government introduced ELECTORAL BONDS system for
funding of political parties.
Ever since , there has been considerable – and diverging – views in
respect of its transparency. This aspect was under debate, not only by public
at large but also by the Election Commission and the Supreme Court . Last year,
Supreme Court struck down this scheme .
This has not helped. If anything
, opaqueness has only increased !
And no one has come forward with an alternative and transparent scheme
Correction :
I submitted , precisely such a transparent and equitable POLITICAL
PARTIES FUNDING SCHEME, vide my following blog / email :
Ø Transparency in Political
Funding ? …………………… 06 July 2017
Highlights of my suggestion:
Ø No direct payment by anyone to any political party (
by cheque – or in cash or in kind )
Ø All donation to be given to Election Commission- and
only by legal methods ( no cash )
Ø Central Government may also provide funds to the
Election Commission
Ø EC to distribute funds to eligible political parties,
using a transparent FUNDING FORMULA
Those interested in knowing the detailed working of my proposal are
requested to look up the link mentioned above
What was missing in my formula ?
Ø My conceptual FORMULA was , fundamentally / logically
very sound, but for want of data , I could not show it in the form of a
mathematical equation
So , what next ?
Ø I got Artificial Intelligence ( GROK ) to dig up the
data, and insert the same into an EQUATION and test its validity
What did GROK come up with ?
Following is the FORMULA proposed by GROK :
Ø
( Total Funding for a party ) Pi =
Fpre,i + Fpost,i
Fpre = Pre Election Funding // Fpost = Post
Election Funding
Pre-Election Funding (Fpre,i F_{pre,i} Fpre,i)
This ensures all eligible
parties get a baseline to campaign, adjusted for past participation and
support.
Formula:
Fpre,I
=
B + (C×Sprev,i)+(V×Vprev,i)
F_{pre,i}
= B + (C \times S_{prev,i}) + (V \times V_{prev,i})
Fpre,i = B + (C×Sprev,i)+(V×Vprev,i)
Components:
1. B ( Base Funding ) :
o
Definition : A fixed amount for every eligible party.
o Value : ₹10 crore (hypothetical, adjustable by EC based on
budget).
o Why : Ensures a minimum war chest for smaller parties,
promoting fairness. It’s
gets it, regardless of size.
o How it’s equitable : Levels the playing field against cash-rich
incumbents.
2.
C ( Contest Coefficient ) :
o Definition : Funding per seat contested in the previous Lok Sabha
election.
o
Value : ₹10 lakh per seat (adjustable).
o Why : Rewards parties for democratic participation. More
seats contested = more
o
o How it’s just : Ties funding to tangible electoral activity, not just
promises. Prevents shell
with minimal effort (e.g., contesting 1-2 seats).
o
.
3.
S_{prev,i} ( Seats Contested Previously ) :
o Definition : Number of seats party Pi contested in the last
election (max 542).
o Why : Historical participation reflects commitment.
Data from EC’s 2024
parties contest widely.
o
o How it’s equitable : Proportional to effort, not outcomes, so smaller
parties aren’t penalized
o
4.
V ( Vote Coefficient ) :
o Definition : Funding per percentage point of valid votes
secured previously.
o
Value : ₹5 crore per 1% vote
share (adjustable).
o Why : Reflects past voter support, a proxy for
legitimacy. Aligns with
public support, not secret donors, drives funds.
o How it’s impartial : Based on verifiable EC data, not subjective
metrics.
5.
V_{prev,i} (
Previous Vote Share ) :
o Definition : Percentage of total valid votes party Pi P_i Pi
got in the last election.
o Why : Ensures funding scales with democratic
mandate. EC data (e.g., 2024
this objectively.
o
o How it’s just : Bigger parties get more, but only because
voters backed them, not
o
Example:
- Party
A contested 50 seats, got 2% votes.
- Fpre,A = 10 + (0.1×50) + (5×2) = 10+5+10 = ₹ 25crore
- F_{pre,A} = 10 + (0.1 times 50) + (5 times 2) = 10 + 5 + 10 = ₹ 25 crore
- Fpre,A =
10 + (0.1×50) +
(5×2) = 10+5+10 = ₹
25crore.
Post-Election Funding
(Fpost,i F_{post,i} Fpost,i)
This rewards actual
performance in the current election, ensuring funds align with voter choice.
Formula:
Fpost,I =
(W×Swon,i) + (P×Vcurr,i)
F_{post,i}
= (W \times S_{won,i}) + (P
\times V_{curr,i})
Fpost,i = (W×Swon,i)
+ (P×Vcurr,i)
Components:
1. W ( Win Coefficient ) :
o
Definition : Funding per seat won in the current
election.
o
Value : ₹ 20
crore per seat (adjustable).
o Why : Winning seats is the ultimate democratic
outcome. Higher value
o
o How it’s equitable : Directly tied to electoral success, impartial as
it’s based on results, not
2.
S_{won,i} ( Seats Won )
:
o Definition :
Number of seats party Pi P_i Pi
wins in the current election (max 542).
o Why :
Reflects current voter mandate.
EC’s 2024 data shows winners deserve
o How it’s just :
Purely merit-based—win more, get more.
3.
P ( Popularity Coefficient ) :
o Definition :
Funding per percentage point of
valid votes in the current election.
o Value :
₹ 10 crore per 1% vote
share (adjustable).
o Why :
Recognizes broad support,
even if seats aren’t won (e.g., in FPTP
o systems). Ties to your transparency
goal—voters, not donors, decide.
o How it’s impartial :
Uses EC-verified vote
totals, ensuring fairness.
4. V_{curr,i} ( Current Vote Share ) :
o Definition :
Percentage of total valid votes party Pi P_i Pi
gets in the current election.
o Why :
Captures popular support
beyond seat wins. EC data ensures accuracy.
o How it’s equitable:
Rewards parties with
widespread appeal, not just regional strongholds.
Example:
- Party
A wins 5 seats, gets 3% votes.
- Fpost,A = (20×5) + (10×3) = 100+30 = ₹ 130crore
- F_{post,A} = (20 \times 5) + (10 \times
3) = 100 + 30 = ₹130 crore
- Fpost,A =
(20×5) +
(10×3) =
100+30
= ₹
130crore.
Total
Funding
Ftotal,I
= Fpre,i+Fpost,i F_{total,i} = F_{pre,i}
+ F_{post,i} Ftotal,i=Fpre,i+Fpost,i
- Party
A : 25 + 130
= ₹ 155 crore
Justification
1. Transparency:
All funds come from the EC, not
donors, aligning with my blog’s online-only donation idea. Donation data ( if
any ) must be public via EC’s portal.
2.
Equity:
Base funding and vote-based components
ensure smaller parties aren’t starved, while winners get rewarded
proportionally.
3. Impartiality:
Relies on EC’s objective data (seats,
votes), not subjective criteria or lobbying.
4.
Anti-Shell
Measures:
High contest threshold (27 seats) and
performance-based post-funding deter paper parties
Implementation Notes
- Budget Cap:
EC sets a total fund ( e.g., ₹ 10,000 crore ) and adjusts coefficients if
needed.
- Audit:
Parties submit expense reports online, audited by EC, ensuring funds aren’t
misused ( transparency
- Lok Sabha
Focus:
542 seats keep it simple for now; state elections can adapt later.
======================================================
FY 2022-23 bond numbers are our baseline for what parties "got under
the present method" at its peak.
For FY 2022-23, here’s what
major parties received via Electoral Bonds, based on EC data and media reports:
BJP (Bharatiya Janata Party) : ₹ 1,294.52
crore (Business Today, Feb 2024).
Congress (Indian National Congress) :₹ 171
crore (Business Today, Feb 2024).
TMC (All India Trinamool Congress) : ₹ 325
crore (Economic Times, Feb 2024).
BRS (Bharat Rashtra Samithi) : ₹
529 crore (Economic Times,
Feb 2024).
DMK (Dravida Munnetra Kazhagam) : ₹ 185
crore (Economic Times, Feb
2024).
BJD (Biju Janata Dal) : ₹ 152 crore (Economic Times, Feb 2024).
Step
2
: Applying
the Proposed Formula for Lok Sabha 2024
Now, let’s calculate what these parties would get
under my proposed formula for the 2024 Lok Sabha election (543 seats,
but we’ll use 542 as in the formula).
We’ll use 2019 Lok Sabha
data for pre-election funding (since it’s the last full election) and 2024
results for post-election funding. Assumptions:
- Total
EC budget: ₹ 10,000 crore ( hypothetical, adjustable ).
- Coefficients
from the formula:
- Base : ₹ 10 crore,
- ₹ 10 lakh / seat
contested,
- ₹ 5 crore/
% vote (pre);
- ₹ 20 crore/ seat won,
- ₹ 10 crore/ % vote (post).
Data Inputs
- 2019 Lok Sabha ( for
Pre-Election Funding
) :
- BJP:
Contested 436 seats……..
37.36% vote share…… ( 303 seats won).
- Congress:
Contested 421 seats…….. 19.49%
vote share….. ( 52 seats won).
- TMC:
Contested 42 seats…………..
4.07% vote share….. ( 22 seats won).
- BRS:
Contested 17 seats………..
1.25% vote share …..( 9 seats
won).
- DMK:
Contested 24 seats………….
2.27% vote share…… ( 23 seats won).
- BJD:
Contested 21 seats………….
4.36% vote share…… ( 12 seats
won).
- 2024 Lok Sabha ( for
Post-Election Funding ) :
-
- BJP:
Contested 441 seats,……
36.56% vote share,…… 240 seats won.
- Congress:
Contested 328 seats,….. 19.51%
vote share,…….. 99 seats won.
- TMC:
Contested 42 seats,……….
4.31% vote share,…….. 29 seats won.
- BRS:
Contested 17 seats, ….~1.0%
vote share (estimated),… 0 seats won.
- DMK: Contested 22 seats,……… 1.82% vote share,
………22 seats won.
- BJD:
Contested 21 seats,……….
3.88% vote share,……….. 0 seats won.
Calculations
1. Pre-Election Funding
(Fpre,i=B+(C×Sprev,i)+(V×Vprev,i)
2.
F_{pre,i}
= B + (C \times S_{prev,i}) + (V \times V_{prev,i})
3.
Fpre,i=B+(C×Sprev,i)+(V×Vprev,i)) :
o
BJP: 10+(0.1×436)+(5×37.36)=10+43.6+186.8=₹240.4crore
10 + (0.1 \times 436) + (5 \times 37.36) = 10 + 43.6 + 186.8 = ₹ 240.4 c
rore 10+(0.1×436)+(5×37.36)=10+43.6+186.8
= ₹ 240.4 crore.
o
o
Congress: 10+(0.1×421)+(5×19.49)=10+42.1+97.45=₹149.55crore
10 + (0.1 \times 421) + (5 \times 19.49) = 10 + 42.1 + 97.45 = ₹ 149.55
crore 10+(0.1×421)+(5×19.49)=10+42.1+97.45 = ₹ 149.55 crore.
o
o
TMC: 10+(0.1×42)+(5×4.07)=10+4.2+20.35=₹34.55crore
10 + (0.1 \times 42) + (5 \times 4.07) = 10 + 4.2 + 20.35 = ₹ 34.55 crore 10+(0.1×42)+(5×4.07)=10+4.2+20.35 = ₹ 34.55 crore.
o
o
BRS: 10+(0.1×17)+(5×1.25)=10+1.7+6.25=₹17.95crore
10 + (0.1 \times 17) + (5 \times 1.25) = 10 + 1.7 + 6.25 = ₹ 17.95 crore 10+(0.1×17)+(5×1.25)=10+1.7+6.25 = ₹ 17.95 crore.
o
o
DMK: 10+(0.1×24)+(5×2.27)=10+2.4+11.35=₹23.75crore
10 + (0.1 \times 24) + (5 \times 2.27) = 10 + 2.4 + 11.35 = ₹ 23.75
crore 10+(0.1×24)+(5×2.27)=10+2.4+11.35 = ₹ 23.75 crore.
o
o
BJD: 10+(0.1×21)+(5×4.36)=10+2.1+21.8=₹33.9crore
10 + (0.1 \times 21) + (5 \times 4.36) = 10 + 2.1 + 21.8 = ₹33.9 crore 10+(0.1×21)+(5×4.36)=10+2.1+21.8= ₹ 33.9 crore.
4. Post-Election Funding (
Fpost,i=(W×Swon,i)+(P×Vcurr,i) F_{post,i} = (W \times
S_{won,i}) + (P \times V_{curr,i}) Fpost,i=(W×Swon,i)+(P×Vcurr,i)):
o BJP: (20×240)+(10×36.56)=4800+365.6=₹5,165.6crore (20 \times 240)
+ (10 \times 36.56) = 4800 + 365.6 = ₹5,165.6 crore (20×240)+(10×36.56)=4800+365.6 = ₹ 5,165.6 crore.
o
o Congress: (20×99)+(10×19.51)=1980+195.1=₹2,175.1crore (20 \times 99) +
(10 \times 19.51) = 1980 + 195.1 = ₹2,175.1 crore (20×99)+(10×19.51)=1980+195.1 = ₹ 2,175.1crore.
o
o TMC: (20×29)+(10×4.31)=580+43.1=₹623.1crore (20 \times 29) + (10
\times 4.31) = 580 + 43.1 = ₹623.1 crore (20×29)+(10×4.31)=580+43.1= ₹ 623.1 crore.
o
o
BRS: (20×0)+(10×1.0)=0+10=₹10crore
(20 \times 0) + (10 \times 1.0) = 0 + 10 = ₹10 crore (20×0)+(10×1.0)=0+10= ₹ 10 crore.
o
o
DMK: (20×22)+(10×1.82)=440+18.2=₹458.2crore
(20 \times 22) + (10 \times 1.82) = 440 + 18.2 = ₹458.2 crore (20×22)+(10×1.82)=440+18.2 = ₹ 458.2 crore.
o
o
BJD: (20×0)+(10×3.88)=0+38.8=₹38.8crore
(20 \times 0) + (10 \times 3.88) = 0 + 38.8 = ₹38.8 crore (20×0)+(10×3.88)=0+38.8 = ₹ 38.8 crore.
5. Total Funding (Ftotal,i=Fpre,i+Fpost,i F_{total,i} = F_{pre,i} +
F_{post,i} Ftotal,i=Fpre,i+Fpost,i):
o BJP: 240.4+5,165.6=₹5,406crore 240.4 + 5,165.6 = ₹5,406 crore 240.4+5,165.6 = ₹ 5,406 crore.
o
o
Congress: 149.55+2,175.1=₹2,324.65crore
149.55 + 2,175.1 = ₹ 2,324.65 crore 149.55+2,175.1 = ₹ 2,324.65 crore.
o
o TMC: 34.55+623.1=₹657.65crore 34.55 + 623.1 = ₹657.65 crore 34.55+623.1= ₹ 657.65 crore.
o
o BRS: 17.95+10=₹27.95crore 17.95 + 10 = ₹27.95 crore 17.95+10= ₹ 27.95 crore.
o
o DMK: 23.75+458.2=₹481.95crore 23.75 + 458.2 = ₹481.95 crore 23.75+458.2= ₹ 481.95 crore.
o
o
BJD: 33.9+38.8=₹72.7crore
33.9 + 38.8 = ₹72.7 crore 33.9+38.8=₹72.7crore.
Step 3: Comparison ( Before vs. After )
|
Party |
FY 2022-23 Bonds (₹ Crore) |
Formula 2024 (₹ Crore) |
Difference
(₹ Crore) |
%
Change |
|
BJP |
1,294.52 |
5,406 |
+4,111.48 |
+317% |
|
Congress |
171 |
2,324.65 |
+2,153.65 |
+1,259% |
|
TMC |
325 |
657.65 |
+332.65 |
+102% |
|
BRS |
529 |
27.95 |
-501.05 |
-95% |
|
DMK |
185 |
481.95 |
+296.95 |
+160% |
|
BJD |
152 |
72.7 |
-79.3 |
-52% |
Missing Factors :
I
strongly feel that funding of Political Parties must also take into account the
following :
“ How strongly do these parties believe that ,
in our Lok Sabha , we must bend backwards to provide greater representation to “
Women Voters “ and “ SC – ST – OBC , Voters “ ?
For
the following simple reason :
·
SC/ST/OBC
Population : ~50 % of India’s 140 crore
·
Women Population :
~48 %
Readers interested in knowing how we could “ Incentivize “ political
parties , by plugging in these factors into our Funding Formula , may want to look up :
"
WOMEN - SC - ST - OBC " : - crucial determinants for Poitical Funding
Step 5: Tweaks to Satisfy All
The formula heavily favours
winners (BJP, Congress, TMC, DMK) but punishes parties like BRS and BJD that
tanked in 2024. To make it universally appealing , following changes could be
considered :
- Increase Base Funding (B):
- Raise from ₹ 10 crore to ₹ 50 crore.
- This
gives BRS (₹67.95 crore) and BJD (₹112.7 crore) a better floor, though
still below FY 2022-23.
- Boost Pre-Election Weight:
- Double
C C C to ₹ 20 lakh/seat or V V V to ₹ 10 crore/%.
- This
rewards past effort more, helping BRS and BJD without over-rewarding
winners.
- Cap Post-Election Gains:
- Limit
W W W or P P P to prevent runaway
funding for BJP/Congress, balancing the pie.
For example, with B=50 B = 50 B=50, :
BRS gets 50+1.7+6.25+10=₹67.95crore 50 + 1.7 + 6.25 + 10 = ₹67.95
crore
50+1.7+6.25+10=₹67.95crore
—
still low but less drastic.
BJD gets 50+2.1+21.8+38.8=₹112.7crore
50
+ 2.1 + 21.8 + 38.8 = ₹112.7 crore
50+2.1+21.8+38.8
= ₹ 112.7crore,
closer to their bond haul.
===================================================
Dear Fellow Citizen :
If you too are concerned with the fact that the Cancer of Corruption is
eating the vital organs ( Constitutionals Institutions ) of our Society, then
please speak up
If you support my suggestion , then do forward this blog to :
Ø Our Cabinet Ministers ……………………..'Cabinet 2024'
<cabinet24@recruitguru.com>
Ø Hon, Supreme Court ………………………. 'supremecourt@nic.in'
Ø Chief Election Commissioner ………….. 'cec@eci.gov.in'
Ø State Chief Ministers ……………………….. 'ChiefMinisters2024'
ChiefMinisters24@recruitguru.com
Ø Lok Sabha Members ……………………….. 'LokSabha2024'
<loksabha24@recruitguru.com>
With Regards ,
Hemen Parekh
www.HemenParekh.ai / www.My-Teacher.in / 30
March 2025
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