Indian government is finalising electoral bonds scheme, a move aimed at cleaning up political funding.

“I have already announced this year and I am keen to implement it. It is in final stages. How do we legitimise political funding in India so that the underground funding itself comes to an end and an alternate mechanism is set in,” Finance Minister Arun Jaitley reportedly said at the book release titled ‘India@70 Modi@3.5’.

As per the electoral bond mechanism announced in the budget, the proposed bonds will resemble a promissory note and not an interest-paying debt instrument, media reports said.

They will be sold by authorised banks and can be deposited in notified accounts of political parties within the duration of their validity, reported PTI.

The bonds will not carry the name of the donor and routing of the money through banks will ensure that only tax paid money comes into the political system.

Jaitley also said that the government is trying to maintain a balance between accelerating the pace of economy and taking care of the needs of the poor.

So, getting cross sections on the government’s side and arousing a new confidence in them has been the basic tenor of this government in the past 3.5 years, he was quoted as saying.

On price rise, he said, this government inherited inflation of 9-10 per cent and subsequently brought it down to a respectable level.

On the criticism of rising inflation by the opposition, he said, “3.36 per cent is also inflation (to them). Of course, system needs inflation otherwise economy will go into a recession.”

He also said the Modi-led government brought down the fiscal deficit and current account deficit and maintain the rupee at the appropriate value.

“Opening of the economy step by step. We not only opened up several sectors we made the entry smoother…India attracted highest level of FDI year after year,” PTI quoted him as saying.