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LATEST NEWS UPDATES | EC to house panel: State funding won?t help, need radical changes to monitor poll expenditure -Anand Mishra

EC to house panel: State funding won?t help, need radical changes to monitor poll expenditure -Anand Mishra

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published Published on May 22, 2017   modified Modified on May 22, 2017
-The Indian Express

Both the EC and the Law Ministry have been asked to furnish their written replies at the next meeting.

New Delhi:
AMID THE demands for state funding of elections, the Election Commission (EC) has categorically told a parliamentary panel that it is “not in favour” of the move. It has, instead, called for “radical changes” in the “provisions regarding receipt of funds” and expenditure by political parties to ensure “complete transparency”.

“The Election Commission is not in favour of state funding as it will not be able to prohibit or check candidates’ expenditure or expenditure of others over and above that which is provided by the state. The Election Commission’s view is that for addressing the real issues, there have to be radical changes in the provisions regarding receipt of funds by political parties and the manner in which such funds are spent by them so as to provide complete transparency in the matter,” the EC said in a four-page submission before the parliamentary standing committee on personnel, public grievances, law and justice headed by Anand Sharma on Friday.

Appearing before the parliamentary panel which is examining a gamut of issues related to electoral reforms, the EC said that the exemption to political parties from reporting details of donations received through electoral bonds is a “retrograde step”.

The EC also took note of the modification of the definition of “foreign source” under the Finance Act 2016, which, it said, would allow foreign companies to fund political parties through Indian companies, provided they follow the rules and regulations prescribed under FEMA 1999.

The parliamentary panel also sought the Law Ministry’s views on the issue of election funding. “We have asked them to tell us what they are doing on the issue. Why can’t there be state funding? We have sought their views. They will be replying in writing to the panel,” said a source in the panel.

Both the EC and the Law Ministry have been asked to furnish their written replies at the next meeting.

In the past too, Chief Election Commissioner Naseem Zaidi has made it clear that unless other radical reforms are brought in, state funding of elections could become “one more additional tool, one more additional source of funds, without reduction in the use of illegal money”.

In his Budget reply in Parliament in February, Finance Minister Arun Jaitley had also said that while he was “open to the idea” of state funding, the belief and optimism that only state-provided funds would be used in elections and nobody would use private funds was “not consistent with Indian reality”.

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The Indian Express, 22 May, 2017, http://indianexpress.com/article/india/ec-to-house-panel-state-funding-wont-help-need-radical-changes-to-monitor-poll-expenditure-4667374/


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