Can FM’s scheme of transparent political party funding survive without a ‘Lobbying model’ like the US?

Today, Finance Minister, Arun Jaitley announced the Union Budget for FY 2017-18 in Lok Sabha and it was mostly concentrated around income tax, agricultural sector growth and transparency in political funding.

The techniques through which a political party applies to raise its riches can be alluded to as political party funding. These funds are required for the crusades and leading the day by day affairs of a party. Now, the question is, from where do these political parties get their funds from? Clearly, the party leaders themselves won't shell out even a penny from their own pockets, all in all, what are the sources which give the monetary support to these parties?

In United States, parties raise funds in a totally unique manner, while in India (lobbying being illegal) lawmakers are subject to wilful commitments, Corporate funding and Foreign Aid.

What are the basic differences between the fund raising process in the United States and India?

In US during the primary elections, an individual can donate a maximum of $2,700 to a candidate committee, $10,000 to a state/district/local party, $33,400 to a national party per year. While in India (as announced today), the maximum amount of cash donation for a political party will be Rs 2,000 from any one source.

Unlike India, lobbying is a routine practice in the United States, since quite a while ago controlled by the council. In 1995, Congress passed the Lobbying Disclosure Act (LDA) that characterized the expression "lobbyist" as "any individual who is employed or held by a client for financial or other remuneration for administrations that incorporate more than one lobbying contact." While in India lobbying exists in a lastingly dark legal and policy arena. Both nearby and remote firms working there are left with virtually no guidance on questions concerning the reasonability of lobbying or what the practice even entails.

Do we require a framework like the US?

Numerous political parties in India get funds from corporate; around 14 electoral trusts have been shaped by the corporate giants like Reliance, Tata, Bajaj and Mahindra with a specific end goal to contribute to the funds of different political parties.

After lobbying being illegal in the country, political parties and corporate usually practice it. After all, without favourable bills and policies how will the corporate profit and without money how’ll the party campaign during elections? For a fact, 75% of the total funding of the political parties is made through unknown sources and this is the case with every election in the history of India.