BJP Leads in Political Funding: Income and Expenditure of National Parties in FY24

The financial landscape of national political parties in India transformed dramatically in FY 2023-24, with the Bhartiya Janta Party (BJP) maintaining its dominance as the highest-earning party. The latest audit reports submitted to the Election Commission of India highlight a significant surge in BJP income, far surpassing that of other national parties. How does the BJP secure such massive financial backing? Why do corporate donors favour the ruling party so heavily? These questions fuel debates over political transparency in India.

BJP Income and Funding Source: Where Does the Money Come From?

• BJP's total income surged by 83%, increasing from ₹2,360 crore in FY 2022-23 to ₹4,340 crore in FY 2023-24, consolidating its financial supremacy.
• Voluntary contributions formed a staggering 91% of the party’s income, rising from ₹2,120.06 crore in FY 2022-23 to ₹3,967.14 crore in FY 2023-24.
• Electoral bonds played a crucial role, with BJP receiving ₹1,685.6 crore through this now-banned mechanism. The anonymity of these bonds has raised ethical concerns—should political parties be allowed to receive funds from undisclosed sources?
• Corporate donations and individual contributions also contributed significantly, strengthening BJP's financial foundation.
• However, with the Supreme Court’s February 2024 ruling banning electoral bonds, BJP faces the challenge of identifying new funding streams. Will BJP turn to digital crowdfunding and direct corporate lobbying?

Income of Other National Parties: Who's Catching Up?

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Indian National Congress (INC)

• Congress' income rose by a staggering 170%, from ₹452.4 crore in FY 2022-23 to ₹1,225 crore in FY 2023-24, signaling increased financial backing for the opposition.
• Electoral bonds accounted for ₹828.4 crore, raising concerns about the impact of the ban on future funding.
• Other revenue sources included corporate donations, membership fees, and individual contributions, though significantly lower than BJP’s.

Communist Party of India (Marxist) - CPI(M)

• The CPI(M) reported a revenue of ₹167.6 crore, maintaining financial stability but lagging far behind BJP and Congress.
• Party subscriptions and grassroots contributions remained its primary source of income, a strategy starkly different from BJP’s corporate-heavy funding model.
• Should a party’s reliance on corporate donors be a cause for concern?

Bahujan Samaj Party (BSP)

• The BSP's earnings stood at ₹64.77 crore, primarily from individual donations and membership fees.
• Unlike BJP and Congress, BSP has historically rejected electoral bonds, relying solely on grassroots fundraising.

Aam Aadmi Party (AAP)

AAP's revenue for FY 2023-24 is still under review, but its model leans heavily on crowdfunding and public donations, making it one of the more transparent parties.

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National People’s Party (NPP)

• NPP, a smaller national party, generated income mainly through party members and private donations, reflecting its regional influence rather than corporate backing.

Expenditure Trends: Where is the Money Spent?

BJP's Spending Patterns

• BJP spent 50.96% of its income, amounting to ₹2,211.6 crore, focusing on election campaigns and party expansion.
• ₹1,754.06 crore went into campaign activities, covering rallies, advertisements, and public outreach.
• ₹591.39 crore was spent on media promotions, significantly higher than its competitors, reinforcing its aggressive digital and TV strategy.
• Should political funding limits be imposed to ensure fair elections?

Congress' Expenditure

• Congress spent 83.69% of its income (₹1,025 crore) on election campaigns and operational costs.
• Media outreach and advertisements formed the bulk of its spending, attempting to bridge the communication gap with voters.

CPI(M) Expenditure

The CPI(M) allocated 75.93% of its funds toward administrative and campaign expenses, reflecting its lower reliance on high-budget electioneering.

BSP's Financial Strategy

BSP allocated 66.67% of its revenue toward party expansion and candidate support, favoring grassroots campaigning over digital promotions.

FY 2022-23 vs. FY 2023-24: What Changed?

• BJP’s income grew by 83%, while Congress’ revenue surged by 170%, signaling an intensified financial battle for dominance.
• Electoral bonds made up over 60% of BJP and Congress’ earnings, but their elimination could redefine funding strategies moving forward.
• The combined income of national parties reached ₹5,820 crore, with BJP alone accounting for 74.5% of the total.
• Expenditures surged as parties ramped up election-related spending, raising questions about financial transparency and accountability.

The Future of Political Financing in India

• With the ban on electoral bonds, will corporate entities still fund major parties openly, or will new opaque methods emerge?
• Can crowdfunding and grassroots donations sustain parties, or will they struggle to compete with corporate-funded rivals?
• Should India introduce strict caps on political donations and campaign spending to create a level playing field?
• As parties seek alternative revenue sources, voter awareness and financial disclosures will be critical in ensuring ethical political financing.

[Disclaimer: This article is based on publicly available audit reports and financial declarations submitted to the Election Commission of India.]