Lok Sabha Elections 2024: Kerala Congress turns to crowdfunding to finance campaign

A file photo of Congress president Mallikarjun Kharge with Rahul Gandhi.

Grappling with financial difficulties, the Kerala unit of the Congress party is contemplating crowd-sourcing funds for its Lok Sabha election campaign. This decision comes in response to directives from the party's high command, which has instructed state units to secure their own funds due to the freezing of the party's bank accounts owing to outstanding tax dues.

AICC Flays I-T Actions as Interference with Poll Campaign Financing

Leader of Opposition in Kerala, VD Satheesan, announced in Thiruvananthapuram on March 26 that the Congress party has resorted to crowdfunding due to financial constraints. More significantly, the decision is in line with the stance of the All-India Congress Committee (AICC), which criticised the actions of the Income Tax (I-T) department, terming them as an attempt by the Centre to hinder the party's campaigning efforts for the upcoming general elections. The AICC stated its inability to allocate funds to state units for campaigning purposes.

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Crowdfunding Emerges as Potential Solution

In light of senior Congress leader Rahul Gandhi's renomination from Wayanad, the state unit of the Congress faces a significant challenge in sourcing financial resources locally. Satheesan said that, if necessary, the party would initiate crowdfunding efforts. Currently, people are willing to offer financial assistance whenever party leaders interact with them during the campaign. He added that voters empathise with the Congress's situation and often contribute amounts ranging from Rs 50 to Rs 200 to party workers.

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Young Cong Leaders Spearhead Crowdfunding Initiatives

Notably, some young Congress leaders in the electoral race have already proactively launched crowdfunding efforts without waiting for an official directive from the state unit. It's expected that seasoned candidates will also adopt similar strategies to sustain their election campaigns., Shafi Parambil, for instance, the Congress-led UDF candidate in Vadakara, temporarily paused his campaign activities to travel to Dubai and Doha to meet with Keralites. Parambil received a warm reception organised by the Kerala Muslim Cultural Centre and the Indian Cultural and Arts Society, a cultural movement associated with the Congress, in Sharjah on March 26, according to a report in the New Indian Express.

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Parambil's recent crowdfunding initiative is not his first, as he previously sought the support of Non-Resident Keralites during the 2021 assembly elections as well. Moreover, he is not the only UDF candidate to engage in such efforts. Remya Haridas, the UDF candidate for Alathur, has also reached out to the public for financial support in raising campaign funds.

Moneycontrol could not verify the report independently.

Challenges of Local Funding in Wayanad

The primary concern for the party in a constituency like Wayanad is the availability of resources locally. However, there are limitations to approaching local traders for funds in a small place like Wayanad. Additionally, there are fixed costs that the party must contend with, such as covering expenses for transporting workers and supporters to public meetings, paying rent for local offices that operate during elections, as well as covering electricity and phone bills.

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Rising Costs Pose Financial Strain Amid Booth Expenditure Realities

There are 585 booths in Wayanad. Therefore, even if the party were to spend a small amount of Rs 1,000 per booth, it would amount to more than Rs 5 lakh. However, in reality, the expenditure is likely to be much higher given the significance of this election, The Telegraph quoted Wayanad panchayat president and district youth Congress chief Shamshad Marakkar as saying.

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2021 Assembly Polls: Youth Leaders Navigate Fund Shortages

In the 2021 assembly elections, several youth leaders faced a fund shortage towards the conclusion of their campaigning efforts and turned to crowdfunding for support. Aritha Babu, the Youth Congress state vice-president who unsuccessfully contested from Kayamkulam, reportedly stated that her poll management team collected nearly Rs 2 lakh through crowdfunding during the final stages of her campaign.