Congress to launch crowdfunding campaign ahead of Lok Sabha elections
What's the story
Facing a cash crunch, the Congress is set to launch a nationwide crowdfunding campaign ahead of the 2024 Lok Sabha elections, NDTV reported.
The party—led by President Mallikarjun Kharge—will start the drive after the upcoming assembly elections in five states.
This approach to seeking funds from party workers and the public is reminiscent of the Aam Aadmi Party (AAP), which reportedly accepts online contributions.
Context
Why does this story matter?
While the Election Commission of India (ECI) is yet to announce the schedule for the Lok Sabha elections, they are expected to be held between April and May 2024.
The Congress, which hasn't officially announced a prime ministerial candidate yet, has allied with over 25 parties under the INDIA alliance for 2024 polls.
It launched a similar crowdfunding campaign for the 2019 polls, too.
Lok Sabha
Congress's funds amount to over Rs. 800 crore
Advocacy group Association for Democratic Reforms (ADR) estimates the Congress's total assets to be Rs. 805.65 crore and the Bharatiya Janata Party (BJP)'s at Rs. 6,046.81 crore.
Corporate donations account for a majority of BJP funds, which have declined significantly for the Congress in recent years.
The BJP has reportedly received three times more donations than other national parties in the last seven years.
Electoral Bonds
History of Congress's electoral spending
Per Economic Times, the Congress spent Rs. 820 crore on its campaign for the 2019 Lok Sabha elections and simultaneous assembly elections in several states.
Previously, the party spent Rs. 516cr during its campaign for the 2014 general elections.
The Congress has reportedly been spending lavishly for assembly poll campaigns, too. In 2022, the Gujarat Congress spent Rs. 47.19cr in campaigning, per ECI data.
Electoral bonds
Electoral bonds and their role in party funds
Electoral bonds are a significant part of any party's funding as they allow anonymous individual/corporate donations to political parties.
The Congress has, however, been aversive to the scheme. In July, party spokesperson Pawan Khera claimed 52% of the BJP's donations came as electoral bonds.
Electoral bonds are monetary instruments that citizens or corporate groups can buy and then donate to a political party.