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The long-term effect of demonetisation is here, Congress Party is almost bankrupt

Sanbeer Singh Ranhotra by Sanbeer Singh Ranhotra
21 February 2021
in Trending
demonetisation, Congress, Rahul Gandhi, PM Modi
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In November last year, Congress mounted an attack over the Modi government, calling demonetisation a historically ‘disastrous decision’ which was no less than an invasion of the unorganised economy of India. Cut to 2021, Congress’ assertions on demonetisation have begun making much more sense. Since 2014, Congress has been struggling to keep itself organisationally afloat. The coffers of the ‘Grand Old Party’ have been drying up – since no corruption money is being diverted to the treasuries of Akbar Road and 10 Janpath. With elections for five states approaching, the Congress’ desperation to have itself replenished with cash has come out in the open.

According to a report by the Times of India, the Congress party has sent an SOS to its state units across the country, particularly to states like Punjab, Rajasthan and Chhattisgarh – where the party runs majority governments. This, in a desperate attempt to somehow divert funds from such states to the party’s coffers. At AICC meetings, party finances – or the lack of the same have begun occupying much more significance.

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The report stated that the meetings focus on organisational matters like the nomination of state presidents, but now, discussions regarding the finances of the party are also being held. The participants are being briefed about the fund situation and asked to take ownership of the party finances. A senior office-bearer said that the current batch of polls is bound to test the party’s management strength which has necessitated the calls to state functionaries for help.

The Congress, apart from asking its Punjab, Rajasthan and Chhattisgarh units for major financial help, has also called upon elected representatives to contribute to the party’s coffers, so that the grand old party can put up a respectable fight, at the very least, in the five states which go to polls in April-May this year. TOI also added that apart from the elections, the party’s official headquarters in Delhi is another matter of financial concern. The headquarters has been under construction for a while now.

Between 2012 to 2019, the BJP has been received the highest amount of corporate donations among political parties. While the saffron party received over Rs. 2,319.49 crores, the Congress was able to shore up only Rs. 376.02 crores, a figure which has nosedived since 2014. Most definitely, demonetisation has played a tremendous role in stripping off the Congress of the truck-loads of cash it amassed during the UPA years. It is only natural for them to therefore despise the decision of PM Modi to declare former Rs. 500 and Rs. 1000 notes as illegal tender.

The market image of Congress has taken a severe hit since 2014, and successive poll routs have only added to its woes. The private and corporate players do not put their money in a non-performing asset, which Congress has of late turned into. With no hope of raising capital from the markets, partly also because of Rahul Gandhi’s mindless tirade against the corporate world, Congress has resorted to asking for meek donations from its own cadre.

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