Funding of Political Parties

 I have consistently argued that the core issue with political funding in India is the lack of a transparent, centralized system. I view the now-scrapped Electoral Bond scheme—and the subsequent reliance on electoral trusts—as flawed attempts that fail to provide genuine accountability.

My proposed solution, which I have advocated for years, is the creation of a Central Election Fund (CEF) administered by the Election Commission of India (ECI) Blog - "Electoral Bonds? Here is a Supreme Scheme" - 2023-10-01.

My Proposed Central Election Fund (CEF)

My model is built on the principle that political parties should receive funds through a neutral, transparent intermediary rather than through direct, private, or potentially influence-peddling donations.

• Total Centralization: I have proposed that no direct donations (even nominal amounts) be permitted to any political party or leader. All contributions must go to the CEF via official banking channels (e.g., cheque, online payment), authenticated by Aadhar number Blog - "Electoral Bonds? Here is a Supreme Scheme" - 2023-10-01.
• Dynamic Transparency: The ECI would maintain a real-time, public-facing, and searchable account of every donation received and every disbursement made, effectively eliminating the anonymity inherent in the bond scheme Blog - "Electoral Bonds? Here is a Supreme Scheme" - 2023-10-01.
• Formula-Based Distribution: Rather than parties competing for corporate funding, I suggest the ECI distribute funds to recognized political parties using a pre-published, mathematical formula based on transparent factors such as historical vote share, seats won, and years of recognition, while applying negative weightage for criminal charges or failure to file annual returns Blog - "Electoral Bonds? Here is a Supreme Scheme" - 2023-10-01.

Addressing Post-Bond Reality

Following the Supreme Court’s decision to strike down the electoral bond scheme, I observed that corporate donations have simply migrated to electoral trusts. While these are arguably more transparent than anonymous bonds, I contend that the current system still lacks the necessary "granularity" and timeliness to prevent outsized private influence Blog - "Trusts, Corporates, Votes" - 2025-12-01.

To ensure that the move away from bonds leads to actual transparency, I have further proposed an "Election Tax"—a mandatory contribution (e.g., 1% of net profit) paid by corporates into the CEF, effectively turning political funding into a structured, visible civic obligation similar to CSR Blog - "Election Tax : alternative of Electoral Bonds" - 2024-04-01.

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Sources

#	Title	Date	About
1	ELECTION FUNDING : YOU CANNOT FAULT THIS !	2017-10-01	My early proposal for a Central Election Fund to replace private donations.
2	Electoral Bonds for Transparency ?	2018-01-01	My critique of the electoral bond scheme upon its introduction.
3	But what is that info in “ sealed cover “ ?	2021-07-01	My analysis of the lack of transparency in the bond scheme.
4	Electoral Bonds? Here is a Supreme Scheme	2023-10-01	My detailed framework for a CEF controlled by the Election Commission.
5	Election Tax : alternative of Electoral Bonds	2024-04-01	My proposal for a mandatory "Election Tax" as a transparent funding model.
6	Trusts, Corporates, Votes	2025-12-01	My analysis of corporate funding post-Electoral Bonds and the limitations of trusts.