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PROVISION OF STATE FUNDING OF ELECTIONS

New Delhi ~ July 20, 2001

The Government has set in motion a proposal for state funding of elections to recognised political parties. Accordingly the Legislative Department in the Ministry of Law, Justice and Company Affairs has prepared a daft Note for the Cabinet in the light of the information available so far and certain developments in other countries. The Note for the Cabinet has been circulated to the Ministry of Home Affairs the Ministry of Finance Department of Legal Affairs and Department of Company Affairs for their comments and concurrence.

The Note is based on the Report of the Indrajit Gupta Committee on State Funding of Elections. The Indrajit Gupta Committee Report was submitted on January 14 1999 wherein it had recommended among other measures for electoral reforms partial state funding of elections to recognized political parties.

Meanwhile the Government is in the process of collecting inputs from State Governments Union Ministries and concerned authorities on the recommendations of the Indrajit Gupta Committee which has financial and other practical implications. The proposed measure when taken is intended to curb considerably the menace of the use of black money power in elections.

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