Union Budget 2017: Massive reform in political funding, maximum limit of cash from one source reduced from Rs 20,000 to Rs 2,000

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New Delhi | February 01, 2017 1:05 PM

FM Arun Jaitley during his budget speech said that political parties continue to received funding from anonymous sources, and hence reduced the maximum donation that a political party can receive in cash is Rs 2,000 from any one source.

Jaitley had said, "Political parties will be entitled to receive donations by cheque or in the digital mode from their donors."Jaitley had said, “Political parties will be entitled to receive donations by cheque or in the digital mode from their donors.”

FM Arun Jaitley during his budget speech said that political parties continue to received funding from anonymous sources, and hence reduced the maximum donation that a political party can receive in cash is Rs 2,000 from any one source. He added that no transaction of more than Rs 3 lakh will be permitted in cash. Jaitley had said, “Political parties will be entitled to receive donations by cheque or in the digital mode from their donors.” Earlier, the limit from once source was Rs 20,000. This move will be a big push towards transparency in political funding.

The Union budget for 2017 is being keenly watched all over the nation, especially after the demonetisation move by Prime Minister Narendra Modi has caused a huge anticipation. Meanwhile, Jaitley has moved away from the colonial era tradition of presenting the budget on the last day of February and presented it on February 1. This move has been done with an aim towards faster implementation of schemes. After the sudden demonetisation decision by the Modi government, with the narrative of reduction of black money and corruption, the government now tabled its annual budget today.

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After the sudden demonetisation decision by the Modi government, with the narrative of reduction of black money and corruption, the government now tabled its annual budget today. The focus of the budget 2017 are in these areas: Farmers, rural population, youth, poor and underprivileged, infrastructure, financial sector, digital economy, public service, fiscal management and tax administration.

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