Electoral bonds worth Rs 16,000 cr sold since its inception; BJP gets the lion’s share

Electoral bonds have contributed over Rs 16,000 crore to various political parties till date, with a significant majority estimated to have been received by the BJP, as per available data. Since the inception of the electoral bond scheme in 2018, which has now been annulled, all political parties collectively received upwards of Rs 12,000 crore until the previous fiscal year. 

The data from the Election Commission and the Association for Democratic Reforms (ADR) shows that the ruling BJP received almost 55% of this amount, equating to around Rs 6,565 crore.

In the fiscal year 2023-24, party-wise data will be available later after annual audit reports are filed. The Association for Democratic Reforms (ADR) reported that the total amount of funds generated through the sale of electoral bonds from March 2018 to January 2024 was Rs 16,518.11 crore. 

These bonds are estimated to account for over half of the total contributions received by the parties. In some regional parties' cases, this percentage exceeds 90. The BJP too, receives more than half of its income from electoral bonds. 

The BJP overtook the Congress as the country's wealthiest party in the final year of UPA-II, reporting a total income of Rs 673.8 crore in 2013-14, compared to the Congress's Rs 598 crore. Since then, the BJP's income has generally increased, while the Congress has seen a decline, except for a few intermittent years.

In the fiscal year 2018-19, the BJP's income saw a significant increase from Rs 1,027 crore to Rs 2,410 crore, more than double the previous amount. This was the first full fiscal year following the introduction of electoral bonds. The Congress also saw a sharp increase in income, from Rs 199 crore to Rs 918 crore. 

However, in the last fiscal year, 2022-23, the BJP's total income was Rs 2,360 crore, with nearly Rs 1,300 crore coming from electoral bonds. The Congress's total income fell to Rs 452 crore, with Rs 171 crore from electoral bonds. The BJP's funds from electoral bonds rose from Rs 1,033 crore in 2021-22, while the Congress's fell from Rs 236 crore. 

Other parties such as TMC, BRS, DMK, BJD, and TDP received Rs 325 crore, Rs 529 crore, Rs 185 crore, Rs 152 crore, and Rs 34 crore respectively through these bonds in the last fiscal. The Samajwadi Party and the Shiromani Akali Dal did not receive any contribution through electoral bonds.

Corporates provide nearly half of the funds in electoral bonds, with the remainder coming from 'other sources'. The Supreme Court has nullified the electoral bonds scheme for political funding, citing violations of the constitutional right to freedom of speech and expression and the right to information. 

Electoral bonds, which function as financial instruments for political donations, offer anonymity to the donor as they do not carry the name of the buyer or payee. There is no maximum limit to the number of bonds one can purchase or donate, and they are available in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore, with the highest denomination being the most popular. 

These bonds are exclusively sold through select branches of the State Bank of India and must be redeemed by political parties within 15 days. If not redeemed, the funds are transferred to the PM National Relief Fund.

Also read: Electoral bonds: ‘Bonds proof of Modi’s corrupt policies,’ says Rahul Gandhi after SC landmark verdict