Electoral Trust Donations Surge After Electoral Bonds Ban
Electoral trust donations have touched a massive ₹3,811 crore in the financial year 2024–25, marking a sharp rise in political funding after the Supreme Court banned electoral bonds earlier this year. According to data submitted by electoral trusts to the Election Commission of India (ECI), the ruling Bharatiya Janata Party (BJP) emerged as the biggest beneficiary, receiving ₹3,112 crore, which is nearly 82% of the total donations.
In contrast, the Congress received ₹299 crore, accounting for less than 8% of the total funds, highlighting a widening gap in political fundraising through formal and transparent channels.
What Are Electoral Trust Donations?
Electoral trust donations refer to funds collected by registered electoral trusts from companies and individuals and then distributed to political parties. These trusts are required to:
Disclose donor details to the Election Commission
Transfer funds only through banking channels
Distribute at least 95% of collected funds within the same financial year
This mechanism has gained importance after the electoral bonds ban, as it offers greater transparency in political funding.
Donations Triple Compared to Last Year
According to ECI data available till 20 December, 9 out of 19 registered electoral trusts donated ₹3,811 crore in 2024–25. This is more than three times the ₹1,218 crore donated in 2023–24, showing how quickly political funding patterns have shifted.
All parties other than the BJP together received around ₹400 crore, roughly 10% of the total donations.
Prudent and Progressive Trusts Lead BJP Funding
The Prudent Electoral Trust was the largest contributor:
Total donation: ₹2,668 crore
To BJP: ₹2,180.07 crore (82%)
To Congress: ₹21.63 crore
Major corporate donors to Prudent include Jindal Steel & Power, Megha Engineering, Bharti Airtel, Aurobindo Pharma, and Torrent Pharmaceuticals.
The Progressive Electoral Trust, the second-largest donor, contributed:
Total: ₹914.97 crore
To BJP: ₹757.62 crore
To Congress: ₹77.34 crore
Together, these two trusts accounted for the bulk of BJP funding in the current financial year.
Electoral Bonds Ban Reshapes Political Funding
Electoral bonds, introduced in 2018, were struck down by the Supreme Court in February 2024 due to concerns over lack of transparency. In 2023–24 alone, 43% of BJP’s total donations came through electoral bonds.
After the ban, electoral trust donations have become the primary legal and transparent route for corporate political contributions.
Why This Matters Now
Experts say the latest data raises important questions about political finance balance, corporate influence, and electoral fairness. While transparency has improved, the heavy concentration of funds with one party may influence future policy debates and electoral competition.
As India heads into a politically active phase, electoral trust donations will remain under close public and regulatory scrutiny, shaping the future of political funding in the country.
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