In many countries, the system of public funding of political parties is like an iceberg. The easily visible part of the system consists of direct financial subsidies to the party organisations. But it is also necessary to take into account the various indirect payments and benefits-in-kind received by the parties.
Free Broadcasting Time
One of the most widespread features of modern electioneering is the allocation of time to the main political parties to allow them, free of charge, to deliver their messages on television and radio. Given the overwhelming importance of television as a medium of political communications, this 'free time' is a vital benefit-in-kind, though it is hard to calculate its commercial value.
State Payments in the Legislature
Members of Parliament and party groups within the legislature often receive payments for research, office expenses, etc. Although these payments are usually intended to permit individual parliamentarians and party groups to carry out their legislative duties, some of the money is likely to be used for partisan political purposes and therefore constitutes an extra source of indirect public funding of the political parties.
Parliamentary payments and allowances are diverted to partisan use in a number of ways. For instance, legislators are expected in some countries to donate a portion of their salaries to their party organisation, see Party Taxes. Legislators frequently use staff, who are officially employed to help the legislator carry out research or to serve his constituents, to conduct activities that are to all intents and purposes electioneering. In one way or another, a considerable portion of the public subsidies provided to enable parliamentarians to carry out their official duties ends up by being used for party political, electioneering purposes.
Use of Governmental Facilities and Public Personnel
Governments frequently use public facilities for party purposes. In Germany, the governing party has at its disposal the Federal Press and Information Office. Though its formal purpose is to conduct propaganda on behalf of the government, there is frequently little to distinguish this task from that of conducting propaganda intended to help the re-election of the governing party. For instance, the Federal Press and Information Office commissions opinion polls, thereby saving the party headquarters of the governing party from having to pay for them.
State Grants to Party Foundations
In addition to grants to parties and political candidates, additional money is given in Germany and in several other countries to 'political foundations'. These organisations are closely connected with a political party, though they are - in formal legal terms - independent. By carrying out party-related policy research and by conducting 'political education' courses, and even by commissioning public opinion research, the foundations relieve the parent parties of the need to spend money on these activities, see Political Foundations.
Tax Reliefs, Tax Credits, and Matching Grants
These are another form of indirect public funding of parties, see Tax Concessions and Matching Grants.
For more information see also Non-Financial Assistance.
Draft Only
