Unveiling Financial Secrets: Inside India's Political Powerhouses' FY 2022-23 Budgets
In the fiscal year 2022-23, the financial landscape of major national political parties in India was delineated through the disclosure of their total income and expenditure, offering a comprehensive understanding of their fiscal health and operational strategies. Leading the pack, the Bharatiya Janata Party (BJP) reported a substantial total income of Rs 2360.844 crore, a testament to its robust financial prowess.
However, despite this significant revenue stream, the party's expenditure stood at only 57.68 per cent of its income, totaling Rs 1361.684 crore, leaving a surplus of Rs 999.16 crore.
These are the findings of Association Of Democratic Reforms, which has studied the audited accounts submitted by the political parties to the Income Tax Department and the Election Commission of India.
In contrast, INC faced a 3.26 per cent financial deficit, spending Rs 467.135 crore against an income of Rs 452.375 crore. CPI(M) demonstrated prudent management, utilising 74.87 per cent of its income (Rs 106.067 crore), yielding a surplus of Rs 35.594 crore. AAP struggled with a 19.82 per cent deficit, spending Rs 102.051 crore against an income of Rs 85.17 crore. NPEP, despite modest income (Rs 7.562 crore), spent 91.67 per cent (Rs 6.932 crore), showcasing responsible financial management amidst limited resources.
Shifts In Income
Significant shifts in total income were observed among major political parties from FY 2021-22 to FY 2022-23. BJP's income surged by 23.15 per cent (Rs 443.724 crore), NPEP's by 1502.12 per cent (Rs 7.09 crore to Rs 7.562 crore), and AAP's by 91.23 per cent (Rs 40.631 crore to Rs 85.17 crore).
Amidst these surges, other major political entities faced income declines in the same period. INC witnessed a notable decrease of 16.42 per cent (Rs 88.90 crore), from Rs 452.375 crore in FY 2021-22 to Rs 363.475 crore in FY 2022-23. Similarly, CPI(M) and BSP saw decreases of 12.68 per cent (Rs 20.575 crore) and 33.14 per cent (Rs 14.508 crore) respectively, indicating significant shifts in their financial fortunes.
Various Sources Of Income
Donations and contributions emerged as the primary income source for most parties, highlighting their reliance on voluntary support. BJP led income generation with voluntary contributions totaling Rs 2120.0642 crore, accounting for a significant 89.801 per cent. INC followed closely, securing substantial revenue from grants, donations, and contributions, amounting to Rs 268.6278 crore, constituting 59.38 per cent of its overall income. AAP heavily relied on donations, with a notable income of Rs 84.3416 crore, making up 99.027 per cent of its total income. Interestingly, INC derived 27.80 per cent of its income from coupon collections, reflecting diverse fundraising strategies. These findings underscore the pivotal role of financial support mechanisms in shaping the operations of national political parties.
Different Expenditures By Political Parties
In FY 2022-23, the top three expenditure items of national political parties offer insights into their spending priorities and operational strategies. BJP allocated its highest expenditure towards Election/General Propaganda, totaling Rs 1092.1558 crore, signalling a significant investment in campaign activities. Administrative Costs followed closely at Rs 191.4276 crore, reflecting a commitment to organisational management. Similarly, INC directed a substantial portion towards Administrative & General Expenses, Rs 235.839 crore, alongside significant resources for Election Expenditure, Rs 192.556 crore, emphasising electoral campaigns.
AAP prioritised Propaganda Expenses with Rs 58.829 crore, followed by Election Expenditure at Rs 36.341 crore. Additionally, CPI(M) and BSP focused on Administrative & General Expenses, Rs 55.596 crore and Rs 16.2779 crore respectively, highlighting their emphasis on infrastructure. NPEP demonstrated a strong focus on Election Expenditure, allocating 95.54 per cent of its total expenditure, Rs 6.623 crore, towards campaign activities.
These patterns shed light on the operational strategies and priorities of national political parties, influencing their engagement with constituents and electoral dynamics.
