Chandrababu Naidu's TDP, Mamata Banerjee-led TMC emerge as highest-income regional parties in 2024-25: ADR

The top five regional parties contributed close to 69% of the total income and accounted for more than 77% of the overall expenditure among the parties studied, a report by the Association for Democratic Reforms (ADR) has revealed for the financial year 2024-25.

Among the regional parties analysed, the Telugu Desam Party (TDP) reported the highest income at ₹228.31 crore, accounting for 19.14% of the total earnings. It was followed by the All India Trinamool Congress (AITC), which declared an income of ₹219.35 crore, and the YSR Congress with ₹140.39 crore, the report noted.

In terms of expenditure, the YSR Congress emerged as the highest spender, reporting expenses of ₹340.20 crore. The Biju Janata Dal (BJD) followed with ₹288.44 crore in expenditure, while the AITC spent ₹227.59 crore.

Regional parties' income falls more than 51% in 2024-25

The total income of 36 regional political parties dropped by more than 51% in the 2024-25 compared to the previous year, the report observed. The study also found that 21 of these parties reported expenditure exceeding their declared income.

Released on 27 May, the report examined the audited financial statements of 36 out of the 67 recognised regional parties whose audit reports for FY 2024-25 were uploaded on the Election Commission’s website. According to the report, the remaining 31 parties had still not submitted their audit reports, even 207 days after the deadline of 31 October last year.

ADR’s analysis showed that the combined income of the 36 regional parties fell to ₹1,192.94 crore in FY 2024-25 from ₹2,463.17 crore in FY 2023-24, registering a decline of ₹1,270.23 crore, or 51.57 per cent.

Despite the sharp drop in income, the parties collectively reported expenditure of ₹1,433.07 crore, which was ₹240.12 crore higher than their total earnings, an overspend of nearly 20%

The ADR report also pointed out that 21 of the 36 regional parties incurred expenses exceeding their annual income.

YSR Congress recorded the largest deficit, spending ₹199.82 crore more than it earned, an excess expenditure equivalent to 142.33% of its income.

Other parties that reported spending beyond their earnings included the AITC, Bharat Rashtra Samithi (BRS), BJD, Janata Dal (United), and the Samajwadi Party.

Meanwhile, 15 regional parties reported a surplus income for the financial year. The Telugu Desam Party (TDP) recorded the highest unspent amount at ₹166.98 crore, followed by the Maharashtra Navnirman Sena (MNS) with ₹36.27 crore and the AIADMK with ₹35.86 crore.

Donations and contributions

The report noted that voluntary contributions continued to be the primary source of revenue for regional parties. Donations and contributions together amounted to ₹702.36 crore, making up 58.88 per cent of the total income.

Among the parties, the AITC received the highest donations at ₹184.08 crore, followed by the YSR Congress with ₹140.05 crore and the TDP with ₹85.20 crore.

Income earned through interest also formed a significant portion of the earnings, contributing ₹277.21 crore, or 23.24% of the total income.

The report also found that election-related expenses and administrative costs continued to be the primary areas of spending for regional parties.

Fifteen parties allocated more than 55% of their total expenditure towards election campaigns. Among them, the YSR Congress recorded the highest election spending at ₹299.92 crore, followed by the Biju Janata Dal (BJD) with ₹270.66 crore and the Bharat Rashtra Samithi (BRS) at ₹147.99 crore.

ADR further highlighted delays in the submission of audit reports. While 15 parties filed their reports within the prescribed deadline, 21 others submitted them late, with delays ranging from two to 96 days.

The report also highlighted that 31 regional parties, comprising major outfits such as the DMK, Shiv Sena, Shiv Sena (UBT), NCP and the Jammu and Kashmir National Conference, had not uploaded their audit reports for FY 2024-25 on the Election Commission website when the analysis was prepared.

ADR called for stricter implementation of disclosure norms, enhanced transparency regarding donor information, and tougher penalties for parties that do not submit audit reports within the stipulated timeframe.