Thursday, April 16, 2015

Analysis of funds collected and expenditure incurred

Analysis of funds collected and expenditure incurred by BJP and AAP during Delhi Assembly Elections, 2013

–          Total funds collected by all National and Regional parties which contested in the Delhi Assembly Elections, 2013, were Rs 2272.91 lakhs.
–          Total funds collected by AAP were Rs 2075.36 lakhs which forms 91% of total funds collected by all the National and Regional Parties and BJP declared a total of Rs 27.7 lakhs funds collected (1.22% of total funds).
–          Total expenditure incurred by all National and Regional parties during Delhi Assembly Elections, 2013 was Rs 1501.71 lakhs.
–     Total expenditure declared by AAP was Rs 905.14 lakhs which forms 60% of total expenditure incurred by all the National and Regional Parties and BJP declared a total expenditure of Rs 315.28 lakhs (20.99% of total expenditure).
For complete report analysing the election expenditure of other parties which contested in the Delhi Assembly elections,';13, please visit: http://adrindia.org/research-and-report/political-party-watch/state-wise-reports/delhi/2015/analysis-election
This report analyses the funds received and expenditure incurred by Bharatiya Janata Party (BP) and Aam Aadmi Party (AAP),during the election period of 26 days of Delhi Assembly Elections held in December, 2013 (09-11-2013 to 04-12-2013). The last date for submission of election expenditure statement for all recognised parties was 24thApril,’14. However, BJP submitted its statement on 31st December,’14, 10 months after the due date.
As AAP was an unrecognized party at the time of contesting in Delhi Assembly Elections,’13, it was not mandatory for the party to submit its expenditure statement. However, in a letter to the ECI dated February 22, 2014, AAP had requested for a grace period of 15 days to submit its accounts of expenditure.
ECI received the expenditure statement of AAP on 6th April,’15.
Submission of Statement of Election Expenditure Incurred during Delhi Assembly Elections, 2013
Table below contains details of date of submission of expenditure statements by political parties which contested in the Delhi Assembly Elections held in 2013. Late submissions by the parties have been highlighted.
Political PartyStatus of Submission of Expenditure Statement to the ECILast date for submission of election expenditure statementsDate on which ECI received expenditure statements from the party
BJPSubmitted24-02-201431-12-2014
INCSubmitted13-05-2014
BSPSubmitted17-02-2014
NCPSubmitted27-02-2014
CPISubmitted24-02-2014
CPMSubmitted24-02-2014
LJPSubmitted20-02-2014
RLDSubmitted19-02-2014
SADSubmitted05-02-2014
SHSSubmitted27-02-2014
AAPSubmitted06-04-2015
AIFBNot Submitted24-02-2014Not applicable
DMDK
INLD
IUML
JD(U)
JKNPP
SP
Table: Details of submission of election expenditure statement by parties which contested in Delhi Assembly Elections, 2013

Details provided in the Election Expenditure Statement
National Parties: Funds Collected and Expenditure Incurred, Delhi Assembly Elections,’13
  • Total funds collected by the National Parties (BJP, INC, CPI, CPM, NCP and BSP) during Delhi Assembly Elections was Rs 122.43 lakhs and total expenditure incurred by the National Parties was Rs 547.46 lakhs.
  • Details of funds collected and election expenditure incurred by National and Regional Parties are provided in the Annexure.
Regional Parties: Funds Collected and Expenditure Incurred, Delhi Assembly Elections,’13 
  • Regional Parties which contested in the Delhi Assembly Elections, 2013 were AIFB, AAP, DMDK, INLD, IUML, JD (U), JKNPP, LJP, RLD, SAD, Shiv Sena and SP.
  • Of the above 12 regional parties, only AAP, LJP, RLD, SAD and Shiv Sena have submitted their election expenditure statements to the Election Commission.
  • It is to be noted that only AAP, Shiv Sena and SAD collected funds amounting toRs 2150.48 lakhs while none of the other regional parties collected fundsduring Delhi Assembly Elections.
  • AAP and SAD are the only regional parties to declare expenditure of Rs 954.25 lakhs during Delhi Assembly Elections,’13.
Funds collected and expenditure incurred during Delhi Assembly Elections, 2013
Funds Collected (Rs in lakhs)Expenditure incurred (Rs in Lakhs)
Political PartyBy CashBy Cheque/DDIn KindTotalBy CashBy Cheque/DDRemaining unpaidTotal
National Parties52.9669.470122.4319.82505.6821.96547.46
Regional Parties128.682018.453.352150.48104.4841.927.93954.25
TotalRs 181.64 lakhsRs 2087.92 lakhsRs 3.35 lakhsRs 2272.91 lakhsRs 124.22 lakhsRs 1347.60 lakhsRs 29.89 lakhsRs 1501.71 lakhs
Table: Funds collected and expenditure incurred by National & Regional Parties during Delhi Assembly Elections, 2013
Graph: Funds collected and expenditure incurred by BJP and AAP during Delhi Assembly Elections, 2013

Funds Collected and Expenditure Incurred in Cash and Cheque 
  • Of the total of Rs 2075.36 collected by AAP, 96.57% of funds collected were by cheques. Total funds collected by cheques as declared by the party were Rs 2004.26 lakhs while funds collected by cash amounted to Rs 67.75 lakhs (3.26%).
  • AAP declared that a total of Rs 3.35 lakhs was collected in kind (0.16% of total funds collected).
  • The total funds collected by BJP amounted to Rs 27.7 lakhs, of which 76.17% orRs 21.1 lakhs were collected by cash, while 23.83% or Rs 6.60 lakhs were collected by cheque / DD.

Graph: Mode of funds collection by political parties during Delhi Assembly Elections, 2013
  • The parties’ preferred mode of expenditure was by cheque/DD, according to the statements submitted.
  • Out of the total expenditure of Rs 905.14 lakhs declared by AAP, expense of Rs 792.81 lakhs (87.59%) was paid by cheque, while Rs 104.40 lakhs (11.53%) was paid in cash, and Rs 7.93 lakhs (0.88%) was remaining unpaid.
  • Out of the total expenditure of Rs 315.28 lakhs declared by BJP, expense of Rs 302.576 lakhs (95.97%) was paid by cheque, while only Rs 12.705 lakhs (4.03%) was paid in cash.
Graph: Expenditure incurred by political parties during Delhi Assembly Elections, 2013

Funds Collected (Rs in lakhs)Expenditure incurred (Rs in Lakhs)
Political PartyBy CashBy Cheque/DDIn KindTotalBy CashBy Cheque/DDRemaining unpaidTotal
Aam Aadmi Party (AAP)67.752004.263.352075.36104.40792.817.93905.14
Bharatiya Janata Party (BJP)21.16.60027.7012.705302.5760315.28
TotalRs 88.85 lakhsRs 2,010.86 lakhsRs 3.35 lakhsRs 2,103.06 lakhsRs 117.11 lakhsRs 1,095.39 lakhsRs 7.93 lakhsRs 1,220.42 lakhs
Table: Funds collected and expenditure incurred by BJP and AAP during Delhi Assembly Elections, 2013
Breakdown of expenditure of political parties under various heads
  • The main heads under which political parties declare their expenses are publicity, travel, other/ miscellaneous expenses and expenditure on candidates.
  • AAP spent the maximum amount of Rs 1706.29 lakhs out of a total expenditure of Rs 2611.42 lakhs on candidates (65% of total expenditure)Rs 726.90 lakhs onpublicity (28%)and Rs 178.23 lakhs on other expenses (7% of total expenditure).
  • BJP spent 83% of its total expenditure or Rs 263.16 lakhs on publicity and 17% of its total expenditure or Rs 52.12 lakhs on other expenses. No expenditure under ‘Travel Expenses’ or ‘Towards candidates’ was declared by the party during the Assembly Elections in 2013.
  • Both AAP and BJP declared that they did not incur any expenditure on travel.
Graph: Expenditure of political parties under various heads during Delhi Assembly Elections, 2013
PartyBreakdown of expenditure as provided in the statement submitted by the parties (Rs. in Lakhs)Total
PublicityTravel expensesOther expensesExpenditure towards candidates
AAP726.900178.231706.29Rs 2611.42 lakhs
BJP263.16052.120Rs 315.28 lakhs
Grand TotalRs 990.06 lakhsRs 0Rs 230.35 lakhsRs 1706.29 lakhsRs 2926.70 lakhs
Table: Expenditure incurred by BJP and AAP under various heads during Delhi Assembly Elections, 2013
Expenditure of Political Parties on Publicity
  • There are three main items listed under publicity expenditure: expense on media advertisement (print & electronic, bulk sms, cable, website, TV channels) publicity material (hoardings, posters, banners etc.), expenses on public meetings(processions, rallies etc.).
  • AAP spent the maximum amount of Rs 484.19 lakhs on media advertisements (67% of total expenditure on publicity) followed by Rs 220.42 lakhs on publicity materials (30%) and Rs 22.29 lakhs on public meetings (3%).
  • BJP spent maximum amount of Rs 117.56 lakhs on public meetings (45%) followed by Rs 84.41 lakhs on media advertisements (32%) and Rs 61.18 lakhson publicity materials (23%).

Graph: Expenditure of BJP and AAP on publicity during Delhi Assembly Elections, 2013

Political PartyExpenditure on publicity declared by BJP and AAP (Rs. in lakhs)Total
Media AdvertisementPublicity MaterialsPublic Meetings
AAP484.19220.4222.29726.90
BJP                 84.41  61.18               117.56263.15
Grand TotalRs 568.60 lakhsRs 281.60 lakhsRs 139.85 lakhsRs 990.05 lakhs
Table: Expenditure of BJP and AAP on publicity during Delhi Assembly Elections, 2013

Recommendations of ADR

  • A limit on election expenditure by political parties has to be set similar to that imposed on expenditure of candidates during election period.
  •     It must be made mandatory for all political parties to submit their statements of expenditure in the format given by the ECI, within the prescribed time limit. Political parties not submitting on time or in the prescribed format should be heavily penalized.
  •    The details of all donors who contribute to national and regional parties exclusively for their election campaigns must be declared in the public domain irrespective of the amount donated.
  • format similar to the donations report along with the date of donations, submitted to the ECI on an annual basis, has to be prescribed for the expenditure statement so as to bring in more transparency in the finances of the political parties especially during elections when it is said that black money plays a major role.
  •     Where possible, expenditure must be limited to transactions via cheque / DD / RTGS so as to reduce use of black money in elections, as per the transparency guidelines issued by the ECI.
  •     Similar to the shadow observers of the ECI for monitoring expenditure of candidates, there must also be observers for monitoring the expenditure of political parties.

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Prof Jagdeep Chhokar
IIM Ahmedabad (Retd)
Founder Member National Election Watch, Association for Democratic
Reforms
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jchhokar@gmail.com
Prof Trilochan Sastry
IIM Bangalore
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National Election Watch,
Association for Democratic Reforms
+919448353285,
trilochans@iimb.ernet.in
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