New Delhi: Finance Minister Arun Jaitley, while addressing the need for political parties to make transparent the source of their funds, said during the Union Budget 2017 speech that parties cannot accept cash donations which amount to more than Rs 2,000.

While political funding still remains a contentious issue with parties receiving crores of rupees through ingenious ways, the reduction of cash donations from Rs 20,000 to Rs 2,000 is expected to work as an effective cap.

“Maximum cash donation any party can receive will be Rs 2,000 from one source,” said Jaitley.

Presenting the Union Budget for 2017-18, the FM said sluggish growth in the current fiscal will be replaced by a higher trajectory in 2017-18 as India’s macroeconomic stability was sound, though the global scenario could pose three major challenges.