BJP Tops National Party Earnings in 2023-24, Supreme Court Halts Electoral Bonds
Notably, the BJP's expenditure was just over half of its income, at Rs 2,211.69 crore, indicating a significant surplus.
By: Tupaki Desk | 18 Feb 2025 5:20 AM
In the 2023-24 financial year, the Bharatiya Janata Party (BJP) led the charge as India's wealthiest national political party, as unveiled by a recent Association of Democratic Reforms (ADR) report. In this period, the BJP announced earnings of a staggering Rs 4,340.47 crore, capturing 74.57% of the collective income of India's six national parties. This sum was more than double that of its closest competitor, the Congress party, which reported earnings of Rs 1,225.12 crore. Notably, the BJP's expenditure was just over half of its income, at Rs 2,211.69 crore, indicating a significant surplus.
Electoral bonds emerged as a pivotal source of funding for the country's political parties in the 2023-24 fiscal year, before the Supreme Court's decisive ruling in May 2024 put an end to the practice. The BJP, Congress, and Aam Aadmi Party (AAP) collectively amassed Rs 2,524.13 crore through this channel, accounting for 43.36% of their total income. Specifically, the BJP received Rs 1,685.63 crore from electoral bonds, while the Congress and AAP secured Rs 828.36 crore and Rs 10.15 crore, respectively.
Financial Management and Spending of Political Parties
The Congress party, standing second in terms of income, showed a higher expenditure rate compared to the BJP, utilizing 83.69% (Rs 1,025.25 crore) of its funds. This contrasts sharply with the BJP’s spending habits, which saw only 50.96% of its income being spent. Additionally, the Congress allocated Rs 619.67 crore for administrative affairs and Rs 340.70 crore for general expenses, highlighting the party's operational costs.
The Communist Party of India (Marxist) also demonstrated notable financial activity, allocating Rs 56.29 crore for party management and general expenses, while dedicating Rs 47.57 crore to employee expenses. This indicates a balanced approach to financial management among various parties, with each prioritizing different aspects of their operations.
Impact of Supreme Court's Ruling on Electoral Bonds
The Supreme Court's decision to halt the funding mechanism of electoral bonds marked a significant shift in the political financing landscape. Prior to this ruling, the State Bank of India, in response to an RTI application from ADR, disclosed that political parties had converted electoral bonds worth Rs 4,507.56 crore into cash during the 2023-24 period. National parties, including the BJP, Congress, and AAP, were the highest beneficiaries, drawing Rs 2,524.13 crore, which constituted 55.99% of the total amount.
The financial dynamics of India's national political parties reveal a complex interplay of income, expenditure, and funding sources, with the BJP leading in income but showing restraint in spending. The Congress party's financial strategy, in contrast, reflects a higher expenditure rate, underscoring the diverse fiscal approaches among India's major political entities. The Supreme Court’s ruling on electoral bonds promises to further transform the funding practices of political parties, underscoring the evolving nature of political finance in India.