Following extensive consultations with stakeholders, the Bharatiya Janata Party (BJP) is considering the revival of electoral bonds after the 2024 general elections, Union Finance Minister Nirmala Sitharaman revealed in a statement reported by the Hindustan Times (HT).
Sitharaman emphasized the need for consultations to devise a framework that ensures transparency while eliminating the possibility of black money entering the electoral system. She stated, “We still have to do a lot of consultation with stakeholders and see what is it that we have to do to make or bring in a framework which will be acceptable to all, primarily retain the level of transparency and completely remove the possibility of black money entering into this.”
The Supreme Court had struck down the electoral bonds scheme on February 15, 2024, deeming it unconstitutional due to its complete anonymization of contributions to political parties. Sitharaman acknowledged that some aspects of the scheme need improvement and indicated that they would be reintroduced following consultations.
Launched in 2018, electoral bonds were available for purchase at any State Bank of India (SBI) branch, allowing corporations and even foreign entities via Indian subsidiaries to make contributions with full tax exemption. However, the identities of the donors remained confidential, safeguarded by both the bank and the recipient political parties.
Sitharaman defended the scheme’s objectives, stating, “What the scheme, which has been just thrown out by the Supreme Court, brought in was transparency. What prevailed earlier was just free-for-all.”
She also addressed criticism from the opposition regarding the BJP’s handling of criminal charges against leaders switching parties. Sitharaman refuted claims of favoritism, stating, “The BJP can’t sit here and say, you come to my party today, and the case will be closed tomorrow. The case has to go through the courts that have to take a call; they will not just say, ‘Oh, he’s come to your party, close the case.’”
Regarding taxation and investment, Sitharaman expressed the government’s intention to simplify the taxation process and facilitate investments into the country.
While the Centre has not yet decided whether to seek a review of the Supreme Court ruling, Sitharaman’s remarks indicate the BJP’s determination to revisit the electoral bonds scheme with necessary modifications to address the court’s concerns and stakeholders’ feedback.
Conclusion:
The BJP’s plan to bring back electoral bonds after the 2024 elections, as revealed by Finance Minister Nirmala Sitharaman, signifies the party’s commitment to transparency in political financing. However, the scheme’s revival would require extensive consultations and modifications to address the Supreme Court’s concerns and ensure public trust in the electoral process.
