03-07-2023 : The Election Commission’s move to implement a new online portal for filing financial statements by political parties marks a significant step towards strengthening accountability and transparency in political funding and expenditure. With the launch of this web portal, parties will be able to submit their financial accounts, including contribution reports, audited annual accounts, and election expenditure statements, through an online platform.
The primary objectives behind this initiative are twofold. Firstly, it aims to address the challenges faced in filing physical reports and streamline the process for timely submission. Secondly, the Commission seeks to promote standardization by having all parties file their financial statements through the online mode. This move aligns with the Representation of People’s Act, 1951, and the transparency guidelines issued by the Commission over the years, emphasizing the importance of financial disclosures by political parties.
The online availability of financial data is expected to boost compliance and transparency levels among political parties. The Election Commission has highlighted the pivotal role of political parties and underscored the significance of adhering to democratic principles and transparency in electoral processes, particularly concerning financial disclosures.
To facilitate the filing process, the online portal includes a reminder feature that sends messages to the authorized representatives’ registered mobile numbers and email addresses, ensuring they stay updated on compliance dates. Additionally, the Commission has provided parties with a comprehensive guiding manual, including graphical representations and FAQs, to help them understand the online module and filing procedures. Furthermore, a hands-on training program is planned to assist designated individuals from various parties in navigating the new system effectively.
Importantly, political parties that opt not to file financial reports online must provide reasons for their decision and can continue submitting physical reports. The Commission will publish all such reports online, along with the party’s justification letter for not filing online, fostering greater transparency in the entire process.
The most recent endeavour by the Election Commission is in line with its continuous efforts to combat financial irregularities that are common among political parties. The Commission has taken numerous actions over the past year to enhance transparency and accountability in political funding and expenditure, from crackdowns by income tax authorities to compliance enforcement.
By adopting this new online portal for financial statements, the Commission aims to empower voters with crucial information about parties’ financial affairs. This move is in line with the Commission’s earlier drive in May 2022 to enforce financial reporting compliance among Registered Unrecognised Political Parties (RUPPs). As part of this drive, the EC delisted 284 RUPPs and declared 253 others as inactive. The Income Tax Department also conducted nationwide raids in September 2022 to investigate certain RUPPs’ affairs.
The Election Commission’s initiative comes in response to instances where some parties failed to submit required financial statements or submitted incomplete and non-standardized details. By digitizing the process, the Commission seeks to instill greater accountability and transparency in political finance, fostering a more informed electorate.