BJP and Congress see significant rise in political donations for 2023-24

In the financial year 2023-24, the BJP witnessed a substantial increase in political donations, receiving around Rs 2,244 crore from individuals, corporate entities, and trusts, a sharp rise from the Rs 723 crore it received the previous year.

In contrast, the Congress party's donations for the same period amounted to Rs 288.9 crore, significantly higher than the Rs 79.9 crore reported in 2022-23.

The recent data published by the Election Commission revealed that a considerable portion of both parties' funding came from the Prudent Electoral Trust. The BJP received Rs 723.6 crore from the trust, while Congress secured Rs 156.4 crore.

Notably, this trust has been a significant source of funding for both parties, contributing to more than a third of BJP’s donations and over half of Congress' funds in 2023-24. Prominent donors to Prudent Electoral Trust included large corporations such as the Serum Institute, ArcelorMittal, Megha Engg & Infra Ltd, and Bharti Airtel.

It’s essential to highlight that these donation figures do not include funds raised through electoral bonds, as political parties only disclose electoral bond donations in their annual audits.

Following the Supreme Court’s decision to strike down the electoral bond scheme in February 2024, the focus now shifts to donations made directly or via electoral trusts.

In addition to national parties, some regional parties disclosed their electoral bond receipts for 2023-24. BRS received Rs 495.5 crore, DMK reported Rs 60 crore, and YSR Congress collected Rs 121.5 crore from the now-defunct bond scheme.

BJP’s donations saw an impressive 212% rise from the previous year, which is typical in the lead-up to elections. For context, prior to the 2019 general election, BJP reported Rs 742 crore in donations, while Congress declared Rs 146.8 crore.

Prudent Electoral Trust also contributed significantly to regional parties, including Rs 85 crore to BRS, Rs 62.5 crore to YSR Congress, and Rs 33 crore to TDP.

Interestingly, BJP declared donations of Rs 3 crore from Future Gaming and Hotel Services, a company owned by Santiago Martin, also known as the ‘Lottery King’ of India. Martin’s company, which was a major donor through electoral bonds, is currently under investigation by the Enforcement Directorate and the Income Tax Department.

Other national parties reported mixed donations, with AAP seeing a decrease in donations, reporting Rs 11.1 crore compared to Rs 37.1 crore in the previous year. CPM’s contributions slightly increased, reaching Rs 7.6 crore.

Some regional parties, such as BSP and BJD, reported no significant donations, while the Samajwadi Party saw a sharp decline in its donations, receiving only Rs 46.7 lakh in 2023-24 compared to Rs 33 crore the previous year.