Here is an explanation of how political parties get financing and how they spend the money:Individuals and corporations donate to the political parties, but lack of transparency makes it impossible to follow the money trail. A cap on corporate donations to political parties, which banned donations worth more than 7.5 per cent of average net profit over three years, was removed. Political parties must declare the amount of money they have received through the bonds, but not the funders’ identity. In the 2014 campaign, the BJP declared spending of Rs 712 crore, over 40 per cent more than the Congress. In the fiscal year ending March 31, 2018, the BJP had an income of Rs 1,020 crore, five times the level the Congress declared.

Source: The Telegraph May 02, 2019 00:56 UTC