Riding a wave of post-electoral bond reforms, the Bharatiya Janata Party (BJP) has seen its financial coffers swell, with donations exceeding ₹6,088 crore in the financial year 2024-25. This represents a substantial 53% increase compared to the ₹3,967 crore received in the previous year. The surge in donations comes after the Supreme Court's decision to scrap the Electoral Bond Scheme in February 2024, a move that has seemingly not deterred but rather boosted the party's fundraising capabilities.
The BJP's financial dominance is evident when compared to other political parties. The party's corpus is almost 12 times larger than that of the Indian National Congress, which stands at ₹522.13 crore for the same period. In fact, the BJP's earnings are 4.5 times greater than the combined donations of a dozen opposition parties, which collectively amassed ₹1,343 crore.
A significant portion of the BJP's funding, approximately 61% or ₹3,744 crore, originated from electoral trusts. The remaining ₹2,344 crore came from diverse sources, including individual donors and corporate entities. This highlights the critical role electoral trusts play in channeling funds to the party. Following the disbanding of electoral bonds, corporate donations via trusts tripled to ₹3,811 crore, with the BJP receiving over 80% of this amount.
Among the top contributors to the BJP in 2024-25 are Serum Institute of India Pvt Ltd (₹100 crore), Rungta Sons Private Limited (₹95 crore), and Vedanta Limited (₹67 crore). Other notable donors include Macrotech Developers Limited, Derive Investments, Modern Road Makers Pvt Ltd, and Lotus Hometextiles Limited. The Progressive Electoral Trust, heavily backed by Tata Group companies, donated ₹914.97 crore, with a significant portion directed towards the BJP. Prudent Electoral Trust emerged as a major donor, disbursing ₹2,180.71 crore to the BJP out of a total of ₹2,668.46 crore.
The increase in donations after the electoral bond scheme was scrapped suggests a shift towards more transparent funding methods. With the electoral bond scheme deemed unconstitutional, companies are now mandated to donate through conventional methods like checks, demand drafts, and bank transfers, ensuring that all contributions are declared in the parties' financial reports submitted to the Election Commission.
While the BJP's financial strength has increased, other parties such as the Indian National Congress, have also received substantial contributions through electoral trusts. However, the disparity in funding remains significant.
The BJP's substantial financial resources enable it to maintain a dominant electoral presence through various activities, including extensive advertising and publicity campaigns. The party's income for 2023-24 was ₹4,340.5 crore, with expenditure reaching ₹2,211.69 crore, a large portion of which was allocated to election-related activities.
Concerns remain regarding corporate funding of political parties, particularly the potential for quid pro quo arrangements. Despite increased transparency, questions persist about whether companies that donate to political parties receive preferential treatment or benefits in return.
Overall, the BJP's financial growth in the aftermath of the electoral bond scheme highlights the evolving landscape of political funding in India. While the move towards greater transparency is a welcome step, continued vigilance is needed to ensure fair and equitable electoral processes.
