Hailing the decision to restrict cash donations to political parties from individuals to Rs.2,000, BJP chief Amit Shah on Wednesday said though his party would also be hit by the move, the step was necessary to free politics from black money and for bringing transparency in the elections.

During the Union Budget presented on Wednesday, Finance Minister Arun Jaitley proposed to restrict cash donations to political parties from individuals to Rs.2,000 and introduced an 'electoral bonds' scheme. The move aims to cleanse the political funding system and check black money.

"Modi, through the Union Budget, has made it clear that just like any common man does not have a right to evade tax or hold black money, even political parties will not be spared from paying the tax on any donation, which is more than Rs 2,000," Shah said.

"We do agree that with this legislation, we (BJP) will also be affected, but we believe that it is our duty to free politics from black money. Elections in the country should be freed from the impact of black money. We want to have transparent elections in the country," the BJP president said.

He was speaking at a public meeting in Bicholim constituency, his last rally for the February 4 Goa Assembly elections.

"In the year 2016, we had promised that we will finish the effect of black money from politics in India. Since the time of Independence, no political party had dared to bring in the legislation governing funding to the political parties," he added.

Shah said, "Modi's name would be taken with respect when the history about elections and transparency in democracy will be written." 

Referring to other announcements in the Budget, Shah said it has given relief to the honest taxpayer of the country.

"The special provision has also been made to provide loan to poor farmers through NABARD. The budget has also considered the unemployed youth, who can become an entrepreneur under Pradhan Mantri Mudra Yojana," he said.