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FCRA Act allows foreign funding of political parties. We should raise this question, why government amended FCRA to allow foreign funding of political parties.
Isn’t this foreign interference in the election process?
QUESTION- WHAT ARE THE ISSUES IN ELECTORAL FUNDING? Should there be state funding of elections? Comment.
#IMPORTANT_THEME
THEME 1 —> STATE FUNDING OF ELECTIONS
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FCRA Act allows foreign funding of political parties. We should raise this question, why government amended FCRA to allow foreign funding of political parties.
Isn’t this foreign interference in the election process?
QUESTION- WHAT ARE THE ISSUES IN ELECTORAL FUNDING? Should there be state funding of elections? Comment.
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State funding of elections
Structute
1. What are the issues with electoral funding ?
A. Corporate funding - regulated under companies act 2013. Centre amended the act and abolished 7.5% cap on corporates donation to political parties
B. No cap on expenditure of political parties. RPA only envision cap on expenditure of candidates
C. Foreign funding - 2018 centre amended FCRA act and allowed foreign funding of political parties
D. Proceeds of crime. Elections are event to convert black money to white money
E. Partial state funding - in terms of free air time and tax rebates.
F. Electoral trust - non transparent because of multiple donors and multiple political parties as recipients
Arguments in favour of state funding of elections
GOVERNANCE
1. Constitutional mandate - article 324 - free and fair elections
2. Transparency and accountability
3. Tackle criminalisation of politics
4. Tackle crony capitalism
5. Citizen centric governance
POLITICAL PARTIES
1. Level playing field to small political parties and independent candidates
2. Intra party democracy- not to be excessively dependent on political party for funding
VOTERS
1. Check undue influence
2. Check populist measures / revri culture
ARGUMENST AGAINST
1. Fiscal burden - FRBM targets
2. Diversion of funds away from welfare activities
3. Misuse of tax payers money - mushrooming of political parties
4. Disconnect with people
5. Operational issues - lack of consensus how to distribute the funds
6. Ineffective - over and above state funding , electoral funding from other sources refutes the very purpose of state funding of elections.
WAY FORWARD
1. National electoral fund
2. Political parties under RTI scanner
3. Cap on expenditure of political parties
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📌71st BPSC Prelims marksheet is now available for download
https://bpsc.bihar.gov.in/marks-sheet/
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CDM
In BPSC Mains GS-1, drawing such maps not only fills space but also gives you an edge with appealing visual presentation, making your answers more impactful and high-scoring.
BPSC WEB
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Repost from 🕸️BPSC WEB🕸️
New batch starting on 21 NOVEMBER 2025
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Repost from 🕸️BPSC WEB🕸️
New batch starting on 21 NOVEMBER 2025
To join contact @Civils_web_BPSC_web_Support
اکنون در دسترس! پژوهش تلگرام ۲۰۲۵ — مهمترین بینشهای سال 
