Regional Parties' Income Plunges 52%, Many Spend Beyond Means: ADR

The combined income of India's regional political parties more than halved in the financial year 2024-25, dropping by over 51% compared to the previous year. Alarmingly, a majority of these parties spent more than they earned, raising serious questions about their financial management and transparency.

According to a comprehensive report released on May 27 by the Association for Democratic Reforms (ADR), the total income of 36 regional parties stood at ₹1,192.94 crore in FY 2024-25, a sharp decline from ₹2,463.17 crore in FY 2023-24. In contrast, their total expenditure reached ₹1,433.07 crore, exceeding income by a staggering ₹240.12 crore.

The ADR analysis, which reviewed audited accounts available on the Election Commission website, found that 21 out of 36 parties operated at a loss, spending more than they collected.

High Earners vs. Big Spenders

Among the parties analyzed, the Telugu Desam Party (TDP) emerged as the highest earner, declaring an income of ₹228.31 crore, which constitutes 19.14% of the total income of all regional parties. It was closely followed by Mamata Banerjee’s All India Trinamool Congress (AITC) at ₹219.35 crore and the YSR Congress at ₹140.39 crore.

However, the spending patterns tell a different story. The YSR Congress was the biggest spender, shelling out ₹340.20 crore, which is 142% of its income. The party recorded the highest "excess expenditure" of nearly ₹200 crore. The Biju Janata Dal (BJD) and AITC followed in expenditure, spending ₹288.44 crore and ₹227.59 crore respectively .

Donations Dry Up, Election Costs Rise

The report highlights that voluntary contributions remain the primary income source for these parties, accounting for 58.88% (₹702.36 crore) of total earnings. The AITC received the highest donations (₹184.08 crore), followed by YSR Congress and TDP.

Despite the income drop, election spending remained high. Fifteen parties spent over 55% of their budgets on polls, with YSR Congress alone spending ₹299.92 crore on election campaigns. Meanwhile, the ADR criticized the lack of transparency, noting that 31 regional parties, including the DMK and Shiv Sena factions, failed to submit their audit reports to the Election Commission even 207 days after the deadline.