Election Expenditure in India

Syllabus: GS2/Polity

Context

• The total expenditure for U.S. presidential and Congressional electionsin 2024 is estimated at around U.S. $16 billion (equivalent to ₹1,36,000 crores).
  • According to the Centre for Media Studies (CMS), the total expenditure by various political parties for the general election to Lok Sabha this year was around ₹1,00,000 crores.

Election Expenditure Limit in India

• It is ₹95 lakh per Lok Sabha constituency in larger States and ₹75 lakh in smaller States. 
• With respect to Legislative Assemblies, they are ₹40 lakh and ₹28 lakh for larger and smaller States respectively. 
• These limits are set, from time to time, by the Election Commission (EC). 
• There are no limits on the expenditure of political parties during elections.

Global Standards

• In the U.S., the financing for elections happens primarily by contributions from individuals, corporations, and political action committees (PAC).
  • There are super PACs on which there are no limits for spending.
• In the U.K., a political party is allowed to spend £54,010 for each constituency they contest.
  • There are also limits placed on candidates’ spending during the campaign period. 

Concerns with High Electoral Expenditure 

• Inequality in Representation: Wealthy candidates or parties dominate elections, marginalizing those with fewer resources and leading to a lack of diverse representation.
• Corruption: It can lead candidates to engage in corrupt practices, such as bribing voters or manipulating election outcomes.
• Creation of Entry Barrier: Increased expenditure that is met primarily through large donations creates an unholy nexus between the elected representatives and donors who seek favours.
  • This acts as an entry barrier into electoral politics for many well-meaning citizens.

Suggested Reforms

• The Indrajit Gupta Committee (1998) and the Law Commission report (1999) have advocated for State funding of elections.
  • This would mean the government partially bears the election expenditures of candidates nominated by recognised political parties. 
• Simultaneous elections are suggested for addressing the issue of rising election expenditures.
  • It refers to the idea of holding Lok Sabha and State legislative assembly elections together, with the aim of reducing the frequency of elections and their associated costs.
• Recommendations as per the EC’s 2016 report on ‘Proposed Electoral Reforms:
  • The law must be amended to explicitly provide that ‘financial assistance’ by a political party to its candidate should also be within the candidate’s prescribed election expenditure limits. 
  • There should be a ceiling on political party expenditures. 
  • Additional judges may be appointed in High Courts for the speedy disposal of election-related cases, which would act as a deterrent against violating these norms. 

Source: TH