Pro-Reform Talk Bolsters Congress Coffers

The strong pro-reforms economic agenda in the partys election manifesto, accompanied with unleashing of the Sonia Gandhi magic, has dramatically improved the Congress finances.

The commitment to open up the insurance sector, both life and health insurance, to foreign companies, albeit with a minority partnership, had worked wonders, according to one of the economic think tank members of the party. With the growing graph of Gandhi popularity and newspapers discussing the possibility of a Congress, or Congress-led government, most of even Swadeshi-loving industrialists are scrambling to be seen as backing Congress.

A party leader had said before Sonia Gandhi began her campaigning that the party under Kesri would give merely Rs 1 lakh each to its Lok Sabha nominees. The rest of the funds were to be managed by the state leadership and individual candidates.

He estimated the expenditure of the party centre, including nationwide tours of some top leaders would require about Rs 3 crore. This way, the Congress high command would have managed the elections on a budget of about Rs 10 crore. The scenario is completely transformed now. With the entry of Sonia Gandhi, things are back to normal.

It is like old times, acknowledged a party leader in terms of election expenses, adding that if we lose it would not be due to lack of funds. We had decided, we must come out with our manifesto before the BJP, a party functionary involved with the manifesto drafting committee said.

Several Indian companies which have firmed up MoUs with foreign insurance companies and have been waiting for policy parameters to be laid out by the government, have been quick to respond.

Not all donations are being accepted at the AICC. A large number of them have to arrange for funds to be delivered at the state headquarters and to candidates indicated by the party. But most donors are making ensuring that Sonia Gandhi knew about their funding the party.

Only a month back Congress leaders used to get the same reply from most industrialists they approached business had been bad and funds were hard to come by. And, that even the stock market was not buoyant and, therefore, gave very little scope to play the market and get funds for elections. With FIIs selling more stock than they were buying , the industry had little scope to manipulate it, they said.

In the midst of the windfall, the Congress, however, has not lost its head. There are strict instructions to all party units that foreign donation are not to be accepted. The party is yet to come clean on the court case on foreign donations accepted during P V Narasimha Raos presidentship. Sitaram Kesri was the party treasurer then. As a Congress leader said: In the Congress, one who gets the funds, distributes the party ticket. This explains the final say of Sonia Gandhi in Congress ticket distribution. Such is the authority of Gandhi that even some leaders who were denied ticket are said to have contributed to the party fund. When Narasimha Rao handed over the party presidentship to his treasurer Kesri, the latters supporters had claimed that the coffers were empty.

This was sited by leaders as one reason why Kesri wanted to avoid elections. But when he could not prevent it, it was becoming clear that financially strong state leaders, especially the chief ministers belonging to the Congress, would have a major say in ticket distribution for their respective states, as they were the ones who would have born e the cost of elections.

But, the entry of Sonia Gandhi on the scene has turned the tides for them. With the party no longer dependent on their funds, their clout in ticket distribution has also diminished, but for a few exceptions who have cleverly placed themselves on the right side of Sonia Gandhi.