What are electoral bonds and electoral trusts, and how do they differ
Exploring the distinctions between electoral bonds and electoral trusts in the context of political funding in India.
- Electoral Bonds:
- Introduced in 2018 by the Indian government to aid transparency in political funding.
- Individuals and corporates can purchase these bonds from designated banks and donate them to political parties.
- Donors' identity remains anonymous, ensuring secrecy in contributions.
- Parties can encash these bonds in registered accounts, providing a clean and legal way for funding.
- Electoral bonds have faced criticism for lack of transparency as the public cannot access information regarding donors.
- Electoral Trusts:
- Established under the Companies Act, 2013 to enable companies to donate to political parties.
- Registrations are required, ensuring a level of transparency in the donation process.
- Trusts must disclose the names of the political parties receiving funds, offering some level of accountability.
- Donations to electoral trusts are considered more transparent compared to electoral bonds.
- However, critics argue that more reforms are needed to ensure complete transparency and accountability in political funding.
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