In the last 20 years, the relationship between finance and politics has been on and off. However, we know that in the free market, the departments of economics, finance and politics are forever linked to one another.
It is no brainer that the politicians are always on the run to make an impact to their voting strategies by offering a decrease in the income taxes or offering a tax break for the working section of society. The economy of a country its directly related to finance and financial expenditures of a country, which is in turn governed and controlled by the political bodies, until the completion of their term. The effort to mend the financial status of a country in the benefit of individual or political parties has always been frowned upon by the community. Hence, there is a direct relationship between politics and finance, in terms of a country.
Tackling the country’s politics with finance altogether gains a separate term called political finance. This field covers all the expenditure and the funds raised by and spect for political parties and purposes. This includes election campaigns, annual budgets and the expenses of different parties in a country. The study of political finance is vital in today’s world as problems arise due to the political parties and candidates struggle to raise funds for elections and other campaigns related to politics.
The study is also imperative to cope with the consequences of money chase, a scramble for political money. Another problem political finance tackles with is the problem associated with the Electoral process and the rising completion among parties and groups. The insufficient funding not only decreases the energy among politicians but also discourages able people from seeking office.
However, not all problems can solve by studying political finance as still. The wealthy self-financed candidates are dominating the society to weaken the democratic accountability of the nation. The flow of money during elections often produces an unanticipated consequence. Ambitious politicians tend to exploit the weakness, pushing the boundaries of the law to collapse the regulatory regime, to gain office. Political finance deals with most of these issues and is also a necessary field in today’s corrupted politics.
Relationship between the two
The bottom line is that there exist plenty of relationships and the reason for the two parties to communicate with each other as the financial decisions of the nation affects the political actions of the people under office. There solely exists a schedule that tells us that the politicians provide benefits to the more significant donors and fundraisers and protect them from taking actionable steps and financial decisions. However, on the bright side, politics plays a vital role in finance every year to form the budget and also cut down on tax reductions and more, which also is attached with a hidden social or economic cost.
People suggest politicians and the financial departments work hand in hand that could quickly stabilize the conditions and levels for all types of business, social and tax policies.