Why Electoral Bonds Threaten to Change ‘One Man One Vote’ to ‘One Dollar On Vote’

The Supreme Court has reserved its verdict last year. The way forward must commit to
transparency, accountability, and strengthen fundamental principles of political equality.

Unveiling the Veiled Dance of Electoral Bonds: A Whisper for Transparency and
Renewal by Vishal Vaibhav Singh

Introduction

TWith the introduction of electoral bonds, the Indian political scene has seen intense a
whirlwind of discussion and controversy that has raised important issues with the
accountability, transparency, and the integrity of our political funding system.. Even if the
Supreme Court has shown in previous hearings that it is willing to examine these financial
instruments' merits and underlying purpose, a definitive answer still needs to be discovered.

Theis essay endeavours to embark upon a meticulous dissection of the intricacies woven into
the fabric of the electoral bonds system has. Our exploration will explore the ramifications of
transparency, the sacrosanct right to information, and the overarching democratic process. As
we navigate this complex tapestry, we seek to unravel the implications on and illuminate the
path toward a more nuanced understanding of the challenges and opportunities that electoral
bonds present to the bedrock of our democratic ethos.

Opacity and Its Consequences:

The electoral bonds system, which was purportedly developed as a tool for political funding,
has drawn mostuch criticism primarily because it of what is considered to be a need for more
openness regarding hides thethe identity of contributors and recipients. While there is nothing
intrinsically wrong with the idea of using electoral bonds in place of traditional cash
transactions, there are real concerns due to the need for more transparency around these
financial transactions.
This militates against the need for transparency.

The aspect of electoral bonds that presents significant gaps in accountability is their secrecy,
which is the subject of the deliberative critique. The Supreme Court's choice to reserve the
verdict for the past three months ??? has withhold vital information instead of rendering a
final ruling on the issue is one significant complicating factor that added s to the general
uncertainty surrounding their future electoral bond paradigm. A more extensive discussion
about the democratic implications of this financial mechanism is exacerbated by the
hesitation to provide a definitive response to the previously described issues.

Tax Exemption and Accountability:

Another subject of contention within the discourse on electoral bonds pertains to the income
tax exemption conferred upon both donors and recipients. The present analysis posits that
Eextant tax legislation should compel comprehensive disclosure of pertinent details from
both the donor and recepientthe tax-exempt organisation. There must be regular
Furthermore, a recommended reform entails the imposition of periodic proprietary audits on
party accounts, thereby ensuring the judicious utilisation of funds following their designated
purpose. This proposed measure aligns political donations with the standards governing tax-
exempt contributions in other sectors, fostersing accountability and mitigatesting the
propensity to simply accumulate unutilised funds.

Limiting Expenditure and Periodic Audits:

To further address the misuse of funds, the essay suggests Iimposing limits on political party
expenditures during elections may be a welcome reform. This proposal parallels the Election
Commission's past recommendations and aims to curb excessive spending. This , ensuresing
a level playing field. Furthermore, the essay advocates for Pperiodic audits conducted by a
CAG-appointed firm every five years to evaluate the utilisation of tax-exempt income would
foster more accountability. Failure to spend the funds for the declared purpose should result
in tax liability, promoting responsible use of political contributions.

Reforming Tax Laws and Foreign Contributions:

The electoral bonds' introduction was accompanied by amendments to various laws, allowing
companies to donate 100% of their profits, and potentially legitimising crony capitalism.
There is a essay highlights the need for comprehensive tax reforms, emphasising the
elimination of the 7.5% profit donation limit. and addressing concerns related to foreign
contributions. The retroactive amendment shielding foreign financing from scrutiny is
deemed a matter of national crisis, requiring urgent attention.

Supreme Court's Role and Citizens' Right to Information:

The Supreme Court's recent hearing on electoral bonds highlight eds the court's critical role in
defending democracy. The In the context of court rulings, the well-established notion of the
public's right to be informed takes precedence, and this right should not be excessively
restricted. This essay critically analyses the argument that citizens do not have the right to
know who donated electoral bonds, made by government counsels drew focus to what the
government’s aims were when coming up with the scheme. It emphasises how important it is
to put acceptable limitations on this kind of information, understanding the fine line between
openness and the need to protect particular interests.

The court's reputation as a steadfast defender of democracy is highlighted in this setting. The
essay emphasises the importance of the Supreme Court's previous historic rulings and urges it
to strengthen and uphold its commitment to ensuring free and fair elections. This plea
implicitly acknowledges that the court's adjudicative authority is crucial in forming the
democratic ethos of the country in addition to interpreting and upholding the law. The court
would be watched closely for how it discharges its obligation is asked to use caution when
examining the issue of electoral bonds, aware of its obligation to maintain the delicate
balance between the citizens' right to information and otherthe requirements of a functioning
democracy.
The Global Context and the Threat to Democracy:

“Justice Louis Brandeis once said We must make our choice. We may have democracy, or we
may have wealth concentrated in the hands of a few, but we can't have both”. He pointed out
that economic and political inequalities are connected and can create a harmful cycle.

This issue is affecting democracies globally, especially in India. The introduction of electoral
bonds has made India the least regulated country for funding elections compared to similar
democracies. When political financing is highly unequal, there's a greater risk that public
policies will favour the super-rich, ignoring the needs of the majority, especially the poor and
vulnerable.

Electoral Bonds and the Threat to Democratic Equality:

As the cost of elections escalates, the dependence of politicians increasingly rely on financial
contributions rises commensuratelyfor electoral funding. This dependency on affluent
individuals for political financing has resulted in a discernible skewing of elections favouring
the top 0.1% of the population.

Robert Dahl's perceptive analysis, integral to the discourse within the professional domain of
political theory, underscores the essence of democracy as "the continuing responsiveness of
the government to the preferences of its citizens, considered as political equals."
Nevertheless, a shadow looms over the democratic landscape due to the widening
socioeconomic gap and the deleterious practice of relying on the affluent for political support,
fundamentally altering the nature of electoral processes.

A Threat to ‘One Man One Vote’

TIn the contemporary context, the hallowed principle of 'one person, one vote' has taken a hit.
undergone a disquieting transformation into the disconcerting reality of 'one dollar, one vote.'
The escalating incongruity in financial influence not only distorts the egalitarian composition
of our political framework but also confers disproportionate sway upon a privileged minority,
amplifying the weight of their ballots over the collective voice of the peoplee populace.
The foundational tenets of democracy are hurt , originally conceived as a harmonious
symphony of political equality, now contend with discord as the cacophony of economic
inequality gets reflected in how much control which citizens have on the politics or the
government of the day. supersedes the democratic melody. To reinstate the spirit authentic
significance of 'government by the people, for the people,' it is imperative to restructure our
electoral system, mitigating the undue influence of monetary power, thereby and reinstating
the equality and integrity inherent in each citizen's vote.

The Global Perspective on Electoral Funding

A discernible nexus exists between a nation's regulatory approach to electoral donations and
its the resultant trajectory of public choicespolicy determinations. Exemplifying this
connection, Germany is the solitary European Union member state that has not proscribed
outdoor smoking promotion by cigarette companies. This peculiarity is explicable by the
singular circumstance wherein all political parties within there is a clear relationship between
a country's rules on political donations and the decisions made by the government. For
example, in the European Union, Germany is the only member state that has not banned
outdoor cigarette advertisements. This is said to becan connected to be explained by the fact
that all political parties in Germany receive significant financial support from cigarette
companies. The nation receives substantial financial support from cigarette companies.

In the United States, there has been a noticeable increase in the percentage of contributions
made by the super-rich, who make up the top 0.01% of the American population. This
percentage rose from 15% in the 1980s to 40% in 2016. At the same time, the lower 50% of
the American population experienced a significant decrease in their annual incomes. This
reduction in income coincided with a substantial decrease in corporate tax rates.

Loukas Karabarbounis, an academic associated with the University of Chicago, conducted a

comparative study of OECD countries in his scholarly work titled 'One Dollar, One Vote.' He
examined the disparities in the Gini index, which measures the extent of wealth distribution
inequality, and found a clear correlation between countries with unregulated electoral funding
and high levels of socioeconomic inequality.

Electoral Bonds and Economic Disparities

According to a recent study by Yasmine Bekkouche and Julia Cagé (2018), there is a clear
link between the amount of money spent on an election campaign and the chances of winning
the election. The research also found that the cost of obtaining one vote in France during
parliamentary elections was six Euros, while in municipality elections, it was 36 Euros.

European nations, like France and Belgium, have implemented a range of laws since the
1990s to limit private spending on elections, effectively reducing the influence of the super-
rich in the electoral process. For instance, France prohibited corporate donations in 1995 and
limited individual contributions to a maximum of 6,000 Euros.

Both Brazil and Chile have banned corporate donations in the aftermath of corruption
scandals related to corporate funding, particularly involving Petrobras. These countries have
implemented public financing for elections as an alternative. The move came after a series of
corruption scandals involving corporate funding, especially in the case of Petrobras, which
led to the introduction of public financing as a means of funding political campaigns.

Whispers of Democracy: The Ephemeral Dance of Electoral Bonds in India

India’s moves on this front are regressive, Within the global democratic evolution, India
appears to have taken a trip down memory lane under the present central administration,
going back decades in contrast to the OECD countries that are advancing with substantial
restrictions and corporate funding bans.

Presenting the mysterious electoral bonds revealed during the dramatic phase of the 2017
Union budget. These odd financial vehicles gave corporates the capricious capacity to lavish
political parties with an endless cash stream, whether they were frolicking abroad or tucked
in the heart of India. Election bonds in India now have created a definitive black boxshadow
of information asymmetry. as the story takes a more complex turn.

Alternatives and the Way Forward:

A thorough review of the current system is required to overcome its inherent opacity and the
resulting dangers to democratic equality. This is the alternative course of action. The
suggestion to amend tax rules, set expenditure limits, and enforce regular audits is a
comprehensive strategy to guarantee the ethical use of political funds.

Through these steps, we want to balance the need for safeguarding the democratic process
and the sine qua non of transparency. In the present instance, the Supreme Court plays a
crucial role that underscores the importance of carefully considering the electoral bond
debate. It is essential to give considerable thought to the court's commitment to protecting
citizens' rights to information while maintaining the democratic culture of the country. It
appeals to the judiciary to negotiate the rugged terrain while keeping a clear conscience of its
responsibility to preserve equilibrium in an orderly democracy.

On the global stage, the correlation between unrestrained electoral funding and economic
disparities resonates as a warning for India. Learning from the experiences of other nations,
particularly those that have curtailed private spending on elections, becomes imperative. The
threat to democratic equality posed by the current trend of 'one dollar, one vote' underscores
the urgency of reorienting the electoral system to restore the true essence of 'government by
the people, for the people.' As Justice Louis Brandeis aptly warned, the concentration of great
wealth in the hands of a few is incompatible with true democracy.

India stands at a crucial juncture, and the choices made in the coming years will shape the
democratic fabric of the nation.

The trajectory forward requires a commitment to transparency, accountability, and the

fundamental principles of political equality. In pursuing a more robust and resilient
democracy, India has the opportunity to redefine its approach to electoral funding, ensuring
that the voices of all citizens, regardless of economic status, resonate equally in the
democratic symphony. The journey toward a fair and just electoral system may be
challenging. Still, the destination holds the promise of a democracy that genuinely serves the
interests of the people it represents.