Public funding refers to funds or resources provided by the State/Government to political parties and/or candidates.
Political parties and candidates should have equitable access to public funds, and the rules regarding public funding should be clearly stated in law. It is particularly important that there be no misuse of public resources by the incumbent party or candidate. The legal framework should encourage the founding and sustainability of a multi-party system.
Public funding is divided into direct public funding or indirect public funding, depending on the form in which public resources are made available.
Direct public funding is given to political parties in the form of money – usually as bank transfers.
Indirect public funding refers to resources with a monetary value that the Government provides to political parties. For additional detail, see the file about indirect public funding of parties and candidates.