State funding of elections - to stem the rot of unchecked corruption by political parties

If you ask anyone about the current fracas in Maharashtra about Rs. 100 Crore per month saga, most people will blame corrupt and greedy politicians. Media shows as if people are getting to know this first time, rather naive. If you speak with any traditional businessperson, you will realize it is common across the country and cuts across political parties What’s differentiating about MH saga is the, criminal aspect (with the death of a businessperson) and that a working senior IPS officer of the rank of Director General has officially complained to the Hon. Chief Minister. I don’t want to get into the whether it is true or the mechanics but want to ask the question, “Why is the fundraise for a political party so murky? And is there a way to solve this systematically. 

If one looks at political parties of today, they all need significant funds to run their machinery. Politicians senior or junior, good or bad in public eye have to ensure finances are lined up. It’s like CEOs and top team of a company have to ensure tanks are filled to take the growth ride. Life for a CEO is challenging but s(he) has access to legal money. What about a political party? Finances are often shrouded in secrecy. Consequently, these not so healthy practices have become common. A minister of a Government under Constitutional oath does not feel wrong or guilty of collecting funds through Government administrative machinery. It is alarming to say the least. 

Electoral politics is integral part of a democracy and it requires funding. Current ecosystem does not provide simple and clean way to raise finances. The system has become murkier over the years. People of India need to ask a question? Do they value democracy? And if Yes, are they willing to fund elections using State funding so that these murky practices are checked to begin with and are stopped subsequently. I reckon most people will react angrily to this suggestion. Why should I pay for a corrupt politician to fight elections? People are in a way justified in their opposition to the idea but see what has happened in absence of a proper financing mechanism. Rampant, unchecked practices to collect money! If we as people are willing to pay taxes that go toward armed forces, education and other national priorities, why have we left such a crucial aspect of our nation and democracy totally exposed to exploitation. 

A system is as good as the people in it. Politics had high morals, dedication to a cause (like the freedom struggle) when people in it had high morals. It’s not that they did not have differences. If one takes galaxy of leaders from freedom struggle era, they had their differences, but they had ethics and decency. Unfortunately, we have crossed all norms of decency and reached a point where unless this cancer is arrested, democracy is at stake. One can go into history and all reasons why we have reached this stage, critical thing is to arrest this rot and make systemic changes. We have stellar examples where a handful of good people have shown how good systems are created and take roots in India. Entrance examination to IITs / IIMs, IT industry, Election Commission, SEBI have over the years proven their mettle. JEE is considered one of the most prestigious examinations. Entire IT service industry has been built on meritocracy and global competitiveness, because early enough, good people started it. What’s unique about IT Services industry is that not only did India become a leader, but it also invented remote IT services that’s followed by the world now. Election Commission has gotten rid of a bunch of bad practices. SEBI cleaned capital markets. 

If people think these are from old times, Swachh Bharat mission by Prime Minister Modi caught people’s attention and imagination. India is much cleaner today in a short span of few years. Same can happen to State funding of elections. It is possible and doable. 

Though not having done detailed analysis (and at times feeling in capable of such an analysis), I wish to suggest the following: 

1. Let’s accept that like many essentials of democracy and Governance, funding support for elections needs to be considered. 
2. Whatever mechanics are decided, parties need to be funded prorate based on the popular votes polled in national, State and local elections. 
3. Let the practice of donations by businesses be above board. 
4. Election Commission plus parliamentarians, State Assembly representatives, Constitutional experts and even industry bodies like CII create a body like GST Council, Finance Commission to come up with details. 
5. Last but most important, this is a complex matter and will require time, patience and participation of the entire political establishment and most important people and will require new laws and possibly Constitutional changes. Therefore, Hon. Prime Minister of India as the leader of world’s largest democracy initiate the debate so that all inputs are brought in and people are on board for this important reform. 

We need to give 3-5 years for first version and another 5 years for its operation when one can hope to start seeing the benefits – cleansing of the system and good people starting to drive electoral politics.