Congress is facing massive fund crisis, might cripple 2019 plans
What's the story
Rahul Gandhi-led Congress party is facing a financial crisis that could cripple its plans to thwart the Modi-led BJP government in the upcoming 2019 elections.
In the past five months, Congress has not been sending funds required to run its offices across the country. Moreover, it has asked its members to increase their contributions, and at the same time cut their expenses.
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Not enough support from industrialists
Funds from industrialists, a major backing source , have all dried up. The party is left with no choice but to crowdfund a candidate.
"They have the money. We have the people. Today, for targeted messaging or Google ads, or YouTube ads, you need money. We cannot match their money," said Divya Spandana, social media head of the party.
Do you know?
Congress attracted 25% funds compared to BJP
The BJP, in the financial year ending March 2017, declared earnings amounting to Rs. 1,034 crore. Compared to that, the Congress earned roughly 25% of this at Rs. 225 crore - a staggering drop of 14% from the previous year.
A Grim Picture
Shrinking political clout
The endless set of defeats of the Congress by the Amit Shah-led BJP has shrunk the space it had been enjoying hitherto. BJP enjoys power in 20 states as compared to a dismal 3 of the Congress party, down from 15 in 2013.
Modi's domineering popularity as the PM ahead of 2019 elections paints a grim picture for the Congress.
Congress vs BJP
Increasing faith of businessmen in Modi
"Headed into 2019, the BJP has a decisive fundraising advantage, not least because the Congress and other key regional parties are seen as less business-friendly," claims Milan Vaishnav, a South Asia expert (Carnegie Endowment for International Peace).
Owing to the business-friendly image of Modi, Vaishnav said the big businesses have been steadily diverting funds from the Congress to the BJP.
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Tough times ahead
For the Congress, revival of corporate funds is directly proportional to its chances against the BJP in 2019. It doesn't appear positive , with consecutive electoral losses.
"The 2019 election will see a very rich party and a powerful government spending resources on a [high profile] campaign, whereas Congress and other parties will run a simple, down-to-earth campaign," said political analyst Ajoy Bose.