New Delhi: Admitting the use of "black money" in elections, Deputy Prime Minister L K Advani today (Mar 4, 2004) asked all political parties to ponder over the issue of poll expenses.

"Yes it (use of black money) is there. It is not a good thing. It is a question which is related not merely to politics, but to economy also," he told Prabhu Chawla in an interview to 'Aaj Tak' when asked black money was used in elections.

Asked from where political parties managed finances to meet the heavy expenses and whether they had to make certain compromises, Advani said no compromise was required.

Rather, he said, political parties should think over all these issues.

Asked about the estimate of poll expenses, Advani said he did not know, but expressed the view that democracy was a costly system of governance. "Therefore, States should undertake the responsibility of defraying the expenditure of elections," he said.

The Deputy Prime Minister said in a bid to make the funding more transparent, the Government had enacted a law allowing the industrial house to donate to political parties through cheque and entitling themselves to some Income Tax exemption.

Asked to comment on the remarks of Rashtriya Janata Dal (RJD) president Laloo Prasad Yadav that the Bihar Government would not allow his 'rath yatra', Advani said it smacked of the Bihar leader's nervousness.