ELEMENTS OF A GRAND BARGAIN

A “grand bargain” to reform political finance would have elements that combine a mix of both carrots and sticks

CONTRIBUTIONS

Full transparency Requiring only donations above an arbitrarily fixed ceiling to be declared practically invites cheating. Every rupee should be disclosed.

Shift to digital payment The best way of ensuring full transparency is for parties to go completely digital. Would-be donors could be required to submit either their Permanent Account Number (PAN) or Aadhaar number.

EXPENDITURES

Loosen limits If parties are willing to adhere to greater transparency, limits on candidate spending could be substantially loosened (or eliminated).

Enhance enforcement For this, the ECI will require new authorities to sanction candidates who break the rules. Those who commit severe transgressions should be debarred from holding any political office for a lengthy period.

PARTY ACCOUNTS

Third-party audit In the future, party accounts should be subject to independent scrutiny either by the Comptroller and Auditor General (CAG) or a slate of respected auditors, the CAG recommends.

PUBLIC FUNDING

Trust, but verify In exchange for robust disclosure and enforcement, state funding could be provided by combining three elements — a basic slab, an amount based on vote share in the previous election, and a matching grant to the amount raised by the party.