Electoral bonds to cleanse political funding system: Govt

The government today said its proposal to launch electoral bonds was aimed at cleansing the system of poll funding and invited suggestions from all political parties for making the process better.
Finance Minister Arun Jaitley, while speaking in the Rajya Sabha, however, rejected a suggestion for making PAN and Aadhaar mandatory for cash donations, saying it was not feasible, particularly in rural areas.
Replying to a debate on the Budget, he explained at length as to how the system of electoral bonds would improve the system of poll funding, saying it will ensure clean donations while ensuring anonymity of the donor.

"People have been wanting to pay (political parties) by cheques but there has been a fear that they could land in trouble as their identity would stand exposed. (Through the electoral bonds) we have addressed both the issues -- ensuring clean donations and keeping identity of the donor confidential," he said.
At the same time, he said if any party has any suggestions to improve the system further, they are welcome for give those.
To a remark by Congress leader Anand Sharma that his party is not getting donations, Jaitley said the electoral bond system will ensure that his party also gets the funds.

"If a government frames a law that helps even the opposition, it shows how big a heart it has," he quipped.

The Finance Minister also referred to a Budget proposal to cap the cash donations at Rs 2,000 per source, down from Rs 20,000.
"What we gave in the Budget is just an outline. There is cheque facility also to make such donations," he said.
"It was the recommendation of the Election Commission to reduce to ceiling of cash donation to Rs 2,000. We have implemented their suggestion," he said.
SAD leader Naresh Gujral floated the idea of making Aadhaar and PAN mandatory for cash donations for more transparency.

"It is not feasible. If there are elections in a village or rural area, then how would a ruralite be able to meet this requirement of furnishing PAN and Aadhaar," Jaitley replied.
Gujral told the House that over 80 per cent of the funding to the political parties is in cash and therefore it is necessary to ask for PAN and Aadhaar from all those people using this mode for giving political donations.
He was sceptical about the implementation of the new rule which mandates that cash donations to political parties will be up to Rs 2000.
The SAD member said this new cap only means that there would be more number of accountants issuing more number of receipts and therefore Aadhaar and PAN should be made mandatory to avoid flow of black money to political parties.

About the sub-plan for SCs and STs, Jaitley assured the House that the funds are being spent on the welfare of these classes of society and distinction of these plan funding was removed by the earlier government.
He said the seven Northeastern states and other hill states still have the facility of 90:10 per cent (Grant:Loan).
Ram Gopal Yadav (SP) wanted to know about the fate of the recommendations of a Parliamentary committee headed by now UP Chief Minister Yogi Adityanath on increasing the remuneration of MPs.
"Your question was a suggestion and I have take it that way," the Finance Minister responded.