51:. Matching funds are granted to a political competitor who has proven to a government authority that he or she solicited small individual donations. Tax credits can be deducted by the taxpayer from tax liability because some part of a political donation is treated like an advance payment on tax. Because matching funds and tax credits depend on financial contributions by individual citizens such support is more compatible with a participatory concept of democracy than flat grants, which do not require specific efforts by the fundraising parties (or candidates).
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political game, government funding for political activity can be an acceptable policy option for democratic polities. The allocation of party subsidies follows general rules for access to and distribution of such grant, for example access for all parties represented in the national parliament and distribution in proportion to the number of seats held in the current parliament, or in proportion to the number of votes polled in the most recent election. Many subsidy schemes are linked to reporting and disclosure obligations for the recipient parties.
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to fund some or all of its political activities. Most democracies (in one way or the other) provide cash grants (state aid) from taxpayers' money, the general revenue fund, for party activity. Such funds may cover routine or campaign costs incurred by the party. Among the established democracies the
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The recipients of public support (in cash or kind) are party organizations, parliamentary groups (party caucuses) and/ or candidates for public office (parliament or presidency). In combination with rules that enforce fair access to and fair distribution of state aid among the players of the
116:(1999), the U.K. (2000) and New Zealand (2010). Nowadays it is also used in Greece, Portugal, Spain and other more recently established democracies in Europe and Latin America: India and Switzerland stand out as exceptions.
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make the formation or electoral participation of new parties more difficult, because such parties do not receive public funding right from the start and occasionally private funding is prohibited.
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United States, Switzerland and India are the most notable exceptions. Party subsidies can be relatively small (as in the U.K.) or quite generous (as in Sweden, Israel and Japan). In the U.S., the
357:) in Germany are examples to the contrary after they had survived their very first, unsuccessful election bids. Cf. external link to the distribution of party subsidies in that country.
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Although the mainstream opinion is in favour of party subsidies now, they are still disputed. Supporters of party subsidies argue that directly providing the campaign funds reduces
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or illegal funding, had become public knowledge. In other countries, the rising costs of political competition stimulated the spread of party subsidies (government funding).
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petrify the party system and thereby lock the democratic process, because subsidies are distributed based on prior election results and not on current voter attitudes,
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In Italy, following the abolition of the state financing of political parties, clear examples are initiatives of Prime
Minister
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takes money from the general fund only after authorized by a statement indicated upon a taxpayer's tax return.
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make parties less accountable to their supporters, because they have less of a need to solicit donations,
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In many democracies public funding for political parties was introduced after scandals, which revealed
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who organized on 6 and 7 November 2014, two fund-raising dinners, held respectively in
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International IDEA, Political
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The argument to the contrary was already published in: Alexander, Herbert E. (ed.):
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were the first countries to introduce party subsidies. They were followed by
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Since the 1970s, party subsidies have been introduced by Norway (1970),
97:(1965), Finland (1967) and Israel (1969) parties received such support.
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Paying for democracy. Polirtical finance and state funding for parties
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340:, Cambridge UK et al: Cambridge University Press, 1989, pp. 248/249.
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Paying for
Democracy. Political Finance and State Funding of Parties
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Cf. Pinto-Duschinsky: 'it's their party, and we pay for it', in:
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Democracy with
Justice. Essays in Honour of Khayyam Zev Paltiel
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383:, Ministry of Justice, Finland (brief explanation in English).
229:, Ottawa: Carleton University Press, 1992, pp. 355–369.
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For a brief compilation of pros and cons see Casas-Zamora;
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http://www.timesonline.co.uk/tol/comment/article608907.ece
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43:Rare instruments of party subsidies are
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241:References
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158:See also
93:(1963),
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