Donations to political parties

When was the last time you thought about re­du­cing your tax bur­dens through 80G, without know­ing what that right in­vest should be? Contribution to­wards funds of polit­ic­al parties could be in­vig­or­at­ing – es­pe­cially if the party wins.

At Gramener, we visu­al­ized the dona­tions re­ceived by vari­ous polit­ic­al parties, to trace their sources, fre­quency and size of dona­tions, and to find out if they ef­fect the elec­tion res­ults. You can ex­plore these at http://ibn.gramener.com/donation/.

The data col­lec­ted over 7 years in­dic­ate that BJP has been the highest re­ceiv­er start­ing 2003, ex­cept in 2005, 2006 and 2009 when Congress had an up­per hand. The over­all fig­ures in­dic­ate BJP as the most so­ci­etal with stag­ger­ing fig­ures of Rs 315 crores which is close to 46% of the total dona­tions done in the past 7 years.

Party-wise donations

Interestingly, for BJP, the years in which show spikes in the trend where BJP gets de­feated. Whereas, for Congress wherever they have spikes they earned gov­ern­ments in states.

BJP donation trendINC donation trend

The trends for both the parties has been rep­res­en­ted above.

If we try to un­der­stand the donat­ing pat­terns from in­di­vidu­als, cor­por­ates and trusts, the cor­por­ates have donated the highest in year 2009 when com­pared to yes­teryears. This was the year when Congress came to power and the over­all stats also in­dic­ate that the dona­tion earn­ing dif­fer­ence was not huge when com­pared to BJP.
Donations in 2009

This may be in­dic­at­ive of the re­forms which cor­por­ates were an­ti­cip­at­ing from Indian National Congress to give some breath to the already gasp­ing eco­nomy in the mid­st of World Economic crisis.

Also, the cor­por­ates have been the highest donors on an over­all basis. But, watch­ing closely, fin­an­cial years 2003-04, 2006-07 & 2010-11, 2011-12 nar­rate a dif­fer­ent story al­to­geth­er where the highest donors were Trusts & Individuals re­spect­ively.

Donations 2004Donations 2007

Donations 2011Donations 2012

Moving on to the com­pan­ies who have con­trib­uted the most, they have set up Electoral Trusts, which sewed up mon­et­ary trans­ac­tions to polit­ic­al en­tit­ies en­sur­ing prop­er tax be­ne­fits and leg­al­iz­a­tion, trans­par­ency of such trans­ac­tions. The trends also in­dic­ate that com­pan­ies in the dir­ect con­sumer products have con­trib­uted the most.

Torrent Power, star­ted in 1996 has been the only power sec­tor en­ter­prise which has en­gulfed huge cash trans­ac­tions in its name every year start­ing 2007-08. Interestingly, the share prices also surged for the fol­low­ing years de­pic­ted as be­low:

Torrent Power share price

Source: https://www.google.com/finance

There are also in­di­vidu­als who have donated only to single party and such in­terest re­mains pretty un­ex­plain­able. For ex­ample, huge sums have babbled to parties like MNS, AIADMK through in­di­vidu­als on a con­tinu­ous basis. The im­agery is as un­der ex­plain­ing the trend and con­tri­bu­tion made on an over­all basis.

Individual donations

Donations do not af­fect the party’s per­form­ance in elec­tion years but even­tu­ally help in build­ing cash re­serves. Indian National Congress, which was in power may not have so much dif­fi­culty in gov­ern­ing it­self on mon­et­ary terms which can also ex­plain a lower per­cent­age of dona­tions to­wards the rul­ing party.

Visit http://ibn.gramener.com/donation/ to ex­plore this data.

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