Budget 2017: Donations above Rs 2,000 to political parties to be made through cheques, digital mode

In yet another attempt to check the increasing menace of black money in funding of the political parties, Union Finance Minister Arun Jaitley, while presenting Budget 2017 in the Lok Sabha on Wednesday said, all donations to political outfits above Rs 2,000, will have to be made through cheques or digital mode.

New Delhi: In yet another attempt to check the increasing menace of black money, Union Finance Minister Arun Jaitley, while presenting Budget 2017 in the Lok Sabha on Wednesday, said all donations to political outfits above Rs 2,000 will have to be made through cheques or digital mode.

Aiming to obtain absolute transparency in the funding of the political parties, the Finance Minister said, ''political parties can receive donations in cheque, electronic mode, electoral bonds, which would be issued by Reserve Bank of India.''

The RBI will issue bearer bonds that a donor may buy through cheques and digital payments. He or she can then give the bond to a political party which must deposit it within a month in a pre-determined account.

"This will bring greater reform in political funding while preventing future generation of black money," Jaitley said.

Jaitley said that the Union Budget for 2017-18 will push growth, promote digital economy and bring transparency in political funding.

"The thrust in Budget is stimulating growth, affordable housing, curbing black money, promoting digital economy, bringing transparency in political funding," Jaitley said, presenting his Budget in the Lok Sabha.

Terming demonetisation as "bold and decisive" measure, Finance Minister Arun Jaitley today said it will have a multiplier effect on the economy and will create bigger, cleaner and real GDP.

"We are moving from informal to formal economy and the government is now seen as a trusted custodian of public money," he said while delivering the Union Budget 2017-18.