New Delhi: To bring about transparency in political funding the government on Wednesday took an important step and announced a drastic 90 per cent cut in the limit for cash donations.
Presenting the Union Budget 2017, Finance Minister Arun Jaitley said that political parties can now receive only Rs 2000 as donation in cash from one source.
For any donation above Rs 2,000, parties will have to disclose the identity of the donor, Arun Jaitley said.
This is a sharp drop from the Rs 20,000 limit that the political parties were so far allowed to receive as anonymous cash donations.
Political parties can receive donations in cheque, electronic mode, electoral bonds to be issued by the RBI.