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The Politics of Donations and the Credibility of Democracy: An Investigation

Rishabh Shukla by Rishabh Shukla
April 8, 2025
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The Politics of Donations and the Credibility of Democracy: An Investigation
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A recent report by the Association for Democratic Reforms (ADR) has once again ignited a debate over the growing role of political donations in Indian politics. According to the report, in the financial year 2023-24, six national parties in India received a total donation of Rs 2544.278 crore, out of which the Bharatiya Janata Party (BJP) alone received Rs 2243.947 crore—nearly 88% of the total. This staggering figure raises a fundamental question: are public policies in India now being shaped by the people, or by the industrial houses funding the political parties?

Massive Donations to BJP – Coincidence or Strategy?

Compared to 2022-23, BJP received Rs 1524 crore more in donations this year. While the Indian National Congress received only Rs 281.48 crore, other national parties such as the Bahujan Samaj Party, Trinamool Congress, and CPI(M) received negligible amounts. The disproportionately high donation to the BJP indicates more than just political popularity.

Given BJP’s stronghold at the Centre and in multiple states, its corporate-friendly image, and expansive electoral machinery, it is not surprising that corporate donors view the BJP as a “safe investment.” However, the implications of this trend on the foundational principles of democracy are deeply concerning and demand serious reflection.

Electoral Bonds: Transparency or Concealment?

The biggest question emerging from this report pertains to the system of electoral bonds. Introduced in the name of transparency, the actual use of these bonds is shrouded in secrecy—neither the donor nor the recipient details are made public.

Though the Supreme Court has recently struck down the electoral bond scheme as unconstitutional, the damage may already have been done. The BJP continued to receive massive donations through this opaque mechanism, which provided it an unmatched advantage at every level of campaigning—advertisements, digital and ground-level outreach, and social media dominance.

Expectations from Donors

In business, every investment is made with an expectation of returns. When a corporate house donates thousands of crores to a political party, it is unlikely to be driven purely by patriotic motives. These donors expect favorable policy decisions, tax concessions, preferential treatment in contracts, and even legislative tweaks to suit their business interests.

This raises a pressing concern: are governments now being run in the interest of a few wealthy donors instead of the common people? Has the common voter’s relevance been reduced to mere electoral arithmetic?

A Warning Bell for Regional Parties and the Opposition

The massive inflow of donations to the BJP is not just a statistical anomaly; it represents a dangerous shift in the balance of democratic competition. When one party receives 88% of total political donations and the remaining parties scramble for the leftover 12%, the playing field is far from level.

Money has become the most powerful tool in modern-day elections. Opposition parties increasingly struggle to raise their voice, reach the electorate, and maintain organizational strength—posing a serious threat to the democratic fabric of the nation.

Role of Media and Public Awareness

The role of mainstream media in this context also comes under scrutiny. When a critical issue like this fails to receive prominent coverage, or is relegated to a small corner of the newspaper, public awareness inevitably suffers.

Social media, independent journalists, and civil society organizations have taken the lead in raising these concerns, but mass awareness remains limited. Voters must understand that donations are not merely financial transactions—they are powerful tools that shape national policies and governance priorities.

What Could Be the Solution?

To restore balance to this distorted electoral ecosystem, several corrective steps are necessary:

Transparency in Political Donations: Every political party must publicly disclose its donations along with the source of the funds.

Cap on Election Expenditure: A uniform limit must be enforced on campaign spending, with strict penalties for violations.

Public Funding of Elections: Parties should be provided a fixed amount from public funds to reduce dependency on corporate donations.

Equal Media Access: All political parties must be granted equal time and space in media platforms to ensure balanced electoral narratives.

Conclusion

BJP’s massive lead in political donations may seem like a success story, but it is also a significant threat to democratic equity. When elections are dictated by money, principles, policies, and public sentiment tend to take a back seat.

To preserve the health of our democracy, it is essential to regulate the flow of political donations and prioritize the voice of the common man. If this trend continues unchecked, future governments may serve only the interests of a wealthy few, while the average citizen’s role is reduced to pressing a button once every five years.

Tags: BJPCongressTMC
Rishabh Shukla

Rishabh Shukla

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