Thursday, June 2, 2011

Cash for nothing

Mr.Minhaz Merchant who is the Chairman of Merchant Media Ltd writes in today’s ET that: 
  • The balance sheets hide more than they reveal. Large national political parties like the Congress and the BJP receive funds through donations. In 2008-09 (the latest available audited accounts), for example, the Congress had total income of 496.88 crore (see chart). The EC cap for a Lok Sabha candidate's expenditure is 40 lakh. Actual expenditure varies between 10 crore and 50 crore per Lok Sabha seat. A major national party contesting, say, 400 Lok Sabha seats as part of a larger coalition would spend at a conservative estimate at least 4,000 crore during a major election campaign. If a party's total income is 500 crore, the deficit of 3,500 crore is obviously made up through unofficial corporate donations. Illegal gratification from myriad scams - 2G spectrum, Commonwealth Games , rice exports, PPP infrastructure projects, etc - also finds its way into the electoral system. 
The inner arrogant speaks that as the government audit the companies vis-à-vis is also true!!

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