Arun Jaitley turns political funding on its head, all donations to political parties to be under scrutiny

In the Union Budget 2017, Finance Minister Arun Jaitley announced that all political parties will be entitled to receive donations only by cheque or in the digital mode from their donors. This is a big move from the government considering Political parties received Rs 7,833 crore funding from unknown sources between 2004-05 and 2014-15, which is 69 per cent of their total income as stated by a report.

The finance Minister also said that the Maximum cash donation any party can receive will be Rs 2000 from one source, earlier it was Rs. 20,000.

Jaitley said that the Union Budget for 2017-18 will push growth, promote digital economy and bring transparency in political funding.

This is yet another attempt to check the increasing menace of black money, one of the main agenda of the government.

This will enable transparency in the funding of the political parties, the Finance Minister said, ''political parties can receive donations in cheque, electronic mode, electoral bonds, which would be issued by Reserve Bank of India.''

Terming demagnetization as "bold and decisive" measure, Finance Minister Arun Jaitley today said that the effects of demonetisation will not spill over in 2017 and it will have a multiplier effect on the economy and will create bigger, cleaner and real GDP.
"We are moving from informal to formal economy and the government is now seen as a trusted custodian of public money," he said while delivering the Union Budget 2017-18.