Left parties criticise proposal for electoral trusts

The Budget proposal for creation of electoral trusts for political donations came in for severe criticism by Left parties, with the CPI(M) saying it would be the "fountainhead of all political corruption".

"The government has legalised corporate funding of political parties which we strongly oppose. It will be the fountainhead of all political corruption," CPI(M) leader Sitaram Yechury said, demanding that the move be reconsidered by the government.

He said if the corporates wish to strengthen the democratic process in the country, "let their donations go to a separate fund set up by the government or the Election Commission and be used for state funding of political parties."

CPI leader Gurudas Dasgupta was also severely critical of the proposal, saying the move "will benefit parties like Congress and BJP. The corporate sector is not interested in Left parties so we do not rely on such donations. However, other parties will reap benefits through this move."

Finance Minister Pranab Mukherjee while presenting the Budget proposed that donor, who donates to the electoral trusts to finance political parties, would enjoy a 100 per cent deduction on the donated amount in computation of his income tax.