It was EC's idea to limit cash donations to Rs 2,000, open to change it: Arun Jaitley

Finance Minister Arun Jaitley on Thursday rejected the suggestion of state funding of elections, saying it is not practical in the Indian context, but was open to the idea of modifying his Budget proposal of capping cash donations to parties at Rs 2,000 per source and issuing electoral bonds.

Jaitley said, "The Rs 2000 limit, that we have given, is the Election Commission's recommendation. It has suggested to lower it from Rs 20,000 to Rs 2,000 to make it stringent. If there is consensus for ending it, then it is a different issue. We will discuss it during Finance Bill."

Replying to a debate on the Budget in Parliament, he said, "If somebody has any improvement to suggest to this idea, we welcome this. Because it is a matter which concerns all of us, we have put a proposal on the table at the stage of Finance Bill it will discussed," he added.

Jaitley, while responding to suggestions made by various members with regard to the political donations during the debate, said, "We can improve on it but don't suggest a problem for every solution. If you suggest a problem for every solution then the present status quo which is not an ideal situation will exist."

To demands for State funding of elections voiced by parties like Trinamool Congress, the Finance Minister said, "I am open to the idea. But your optimism is based on the fact that when State funding starts only Stateprovided funds will be used in elections and nobody will use private funds in the elections. So your optimism is based on this one belief which is not consistent with Indian reality."

Lamenting that even 70 years after Independence bulk of India's politics is funded through unaccounted money, he said, "We don't want an argument where people have a problem with every solution. And that is the tragedy of political funding in India. Whichever solution you suggest, people will suggest the problem arising out of that," he added.

People prefer to give donations in cash because it has anonymity, Jaitley said, adding that the current government has made a serious effort to legitimise this. "We have said that you pay by cheque, then donor and donee both will get tax advantage. We have said pay by digital mode," he added.

Stressing that issuing electoral bond would ensure that only legitimate, tax paid, accounted money comes into the political system, he said the identity of donor will be kept secret since the Banking Regulation Act prohibits sharing of details of bank transactions to anyone, including the government.

PNB scam: Odisha to review Gitanjali group's Rs 6-bn jewellery park project

Bhubaneswar: The Odisha government will review the Gitanjali group's Rs 6.36 billion project to set up a gem, jewellery, lifestyle and luxury goods pa...

Banks Face Nearly 20,000 Cr Blow In Nirav Modi Case: Tax Dept

New Delhi: Indian banks could take a hit of more than $3 billion from loans and corporate guarantees provided to diamond companies at the centre of th...

Adani kin buys majority stake in Air Odisha

Mumbai: The Ahmedabad-based GSEC Aviation and Monarch Networth Capital has acquired majority stake in Air Odisha, which is set to launch its services ...

Will Take "Supervisory Action" In PNB Fraud Case: RBI

New Delhi: The Reserve Bank of India has carried out an assessment of the control systems at the Punjab National Bank, the central bank announced in a...