Electoral Bonds: Economic Rationality and Way Forward

Abstract

Elections form the bedrock of the largest democracy in the world - India. Since Independence, as many as 15 Lok Sabhas have been formed through elections, the first one being held in 1951–52. Elections provide a way for people to assert their voice, and opinion and choose the person whose priorities and ideas match with them most. Elections in India are also a platform for the public to voice their resentment against a ruling party. By voting for other parties and helping elect a different government, citizens demonstrate that they possess ultimate authority. India has held 17 parliamentary elections till 2019. The 18th parliament election is scheduled for 2024. Elections are also held for the state assemblies. Elections have become expensive over the years. A report by the Center for Media Studies in New Delhi has estimated the total expenditure on the general elections to be around 60,000 crores. The Government of India launched the scheme of Electoral Bond to fund the engagement of political parties in elections. Besides violating the rights of voters, the scheme suffered from many serious flaws. It turned out to obliterate the fine distinction between the public and corporate finance. The Association for Democratic Reforms approached the Supreme Court of India to declare the scheme unconstitutional. Taking note of the serious flaws, the scheme was declared unconstitutional in March 2024 by the Supreme Court of India. The policymakers assert that the abolition of the Electoral Bond scheme is not in the national interest. India now needs to reinvent the scheme.

Keywords: Electoral Bonds, Amendments in Law, Cash Donations, Conditional Validity, Transparency

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