Facing persistent funding constraints in several states, the Congress has devised a new formula aimed at incentivising fundraising efforts within state units. Under the plan, for every ₹1 lakh raised by a state unit, the AICC will contribute an additional ₹1 lakh.
The move comes amid growing concern within sections of the party that taking on the BJP effectively requires stronger financial resources at the grassroots level, where district presidents, booth workers, and election candidates need funds to travel, organise meetings, and maintain visibility among the public.
During the recent training of presidents in Himachal Pradesh, party functionaries were informed about the matching fund mechanism. “We have been facing funding issues, but now state presidents have been told that the AICC will also contribute, provided they actively work towards raising funds,” a senior Lok Sabha MP said.
One of the recent examples of financial strain within the party was Assam, where leaders privately admitted that the organisation lacked a streamlined fundraising structure. Many within the party felt this was reflected during elections, where the Congress suffered from a visibility deficit on the ground.
“In order to remain present and visible among the people, we need resources. Visits, meetings, and outreach require basic financial support,” a Congress leader said. “At times, even the cadre lose motivation when they see the main political player on the ground struggling financially. They begin to feel he cannot deliver.”
A state unit president told The Week that fundraising has become especially difficult when the BJP is in power both at the Centre and in many states. “Businessmen are often more willing to fund the BJP than the Congress,” he said.
According to the leader, the number of people willing to join politics and spend money on political activity has also declined over the years, at least for the Congress. “The younger generation today would rather invest money in business than in politics,” he said. “Compared to earlier times, there is clearly a difference. And since we have been in the Opposition for a long time, it is naturally harder for us to raise funds than it is for the BJP.”
