The ARC on Ethics in Governance recommends the introduction of partial state funding for elections in order to reduce the scope of illegitimate and unnecessary funding of expenditure for elections. This means that the government would provide financial support to political parties or candidates, but it would not cover the entire cost of election campaigns.

Recommendation of the ARC on Ethics in Governance regarding political funding: Partial state funding to reduce illegitimate funding.


The ARC on Ethics in Governance recommends partial state funding for elections as a means to reduce illegitimate funding. This recommendation is based on the understanding that political funding plays a crucial role in shaping the functioning of a democratic system. However, the issue of funding also raises concerns about the influence of money in politics and the potential for corruption.

1. Need for state funding:
- Elections are a cornerstone of democracy, and it is essential to ensure that they are conducted in a fair and transparent manner.
- Political parties and candidates require funds to effectively participate in elections, but relying solely on private funding can create an imbalanced playing field.

2. Illegitimate funding:
- Illegitimate funding sources, such as black money or donations from vested interests, can lead to corruption and compromise the integrity of the electoral process.
- Such funding can also result in unequal representation, as parties with access to more resources have a better chance of influencing public opinion and winning elections.

3. Partial state funding:
- The ARC recommends partial state funding as a solution to address the issue of illegitimate funding and promote a level playing field.
- Under this system, the government provides financial support to political parties and candidates, reducing their reliance on private funding.
- However, it is crucial to maintain a balance between state funding and private contributions to avoid over-reliance on the government and ensure accountability.

4. Benefits of partial state funding:
- Reduces the influence of money power: By providing state funding, the reliance on private funding, especially from questionable sources, is reduced. This helps to minimize the potential for corruption and undue influence.
- Promotes fair competition: State funding can level the playing field and provide equal opportunities to all political parties and candidates, regardless of their financial resources.
- Enhances transparency: With state funding, there is a greater degree of transparency in political financing, as parties and candidates are required to disclose their expenses and the use of public funds.

5. Other considerations:
- While partial state funding is recommended, it is important to strike a balance between state funding and private contributions to avoid excessive dependence on the government.
- Mechanisms should be put in place to ensure accountability and transparency in the allocation and utilization of state funds.
- Adequate regulations and oversight are necessary to prevent misuse of state funding and ensure that it serves its intended purpose of strengthening democratic processes.

Overall, the ARC on Ethics in Governance recommends partial state funding for elections as a means to reduce illegitimate funding and promote fairness, transparency, and integrity in the electoral process.