The total spending for the upcoming U.S. presidential and Congressional elections in November 2024 is projected to reach approximately $16 billion.
This amount translates to around ₹1,36,000 crores in Indian currency.
India 2024 Lok Sabha Election Expenditure
- For the 2024 Lok Sabha elections, the Centre for Media Studies (CMS) estimates that various political parties spent a combined total of about ₹1,00,000 crores.
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What is the Election Expenditure Limit?
- This limit refers to the amount of money that a candidate can spend on an election campaign.
- It is set by the Election Commission of India (ECI) which varies based on the type of elections and size of states.
- Election Expenditure Limits in India
- Limits for Lok Sabha Candidates
- In larger states, the expenditure limit for each Lok Sabha constituency is ₹95 lakh.
- For smaller states, the limit is set at ₹75 lakh per constituency.
- Limits for Legislative Assembly Candidates
- Candidates contesting in Legislative Assemblies have a spending cap of ₹40 lakh in larger states.
- In smaller states, the limit for Assembly candidates is ₹28 lakh.
- Regulation by the Election Commission
- These expenditure limits are periodically revised and set by the Election Commission of India (ECI).
State Funding of Elections
- It is a mechanism of election funding in which the government gives funds to political parties for contesting elections.
- Advantages
- Ensures Transparency in electoral funding– Citizen can know about the election funding and expenditure (under right to know).
- Fairness: It ensures that all political parties and candidates have equal funds. By doing so, commission reduces the influence of wealthy individuals.
- Curbing Illicit Funding: helps in reducing the use of illicit money into politics.
- Past government report that look into state funding
- Indrajit Gupta Committee on State Funding of Elections (1998)
- Law Commission Report on Reform of the Electoral Laws (1999)
- National Commission to Review the Working of the Constitution (2001)
- Second Administrative Reforms Commission (2008)
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- Notably, there are no expenditure limits imposed on political parties during election campaigns.
These restrictions aim to promote fair competition, though the absence of limits for political party spending remains a key concern.
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Laws governing election expenditure in India
- Section 77 in The Representation of the People Act, 1951: This act outlines rules and regulations regarding election expenditure in India.
- Accounting keeping: every candidate is required to maintain an account of all election expenditures, from the date of nomination to the declaration of results.
- The account should keep all details such as date, purpose, and amount.
- Exemptions from elections expenditures
- Party leader travel; The expenses incurred by political parties leaders on or travel and campaigning is not considered as the expenses for individual candidates.
- Government official: According to Section 123(7) of the Act, expenses related to official duties of government officials are not counted as election expenditure.
- Submission of Expenditure Statement: All candidates or their election agent are required to submit expenditure statements to the election commission of India.
- It is done within 30 days of the elections being declared.
- In case, a candidate fails to submit this statement or provides wrong information, it can cause disqualification of the candidate for up to three years.
International Standards
- United States:
- Election funding primarily comes from individual and PAC contributions.
- There are spending limits for individual and PAC contributions to candidates.
- Super PACs, with no spending limits, contribute significantly to overall costs.
- In 2024, about $5.5 billion is expected for the presidential election, and $10.5 billion for Congress.
- United Kingdom:
- Political parties can spend £54,010 per constituency, totaling approximately £35 million for all constituencies.
- Candidate spending limits range from £46,000-49,000 during the long campaign and £17,000-20,000 during the short campaign.
Challenge of Rising Election Expenditure
- Excessive Spending: Political parties, especially major ones like the BJP and Congress, routinely exceed expenditure limits.
- It is driven by significant donations that often create undue influence and conflicts of interest.
- Illicit Funding: A significant portion of election funds is spent on illegal activities like cash distribution to voters.
- Limit Breaches: Major political parties in India frequently exceed the set candidate expenditure limits, while party spending remains unrestricted.
- Corruption: The high cost of elections fuels corruption, as politicians seek to recoup their investments.
- Informal Spending: CMS reports that 35% of election funds are allocated to campaigns, and 25% is spent on voter inducements, with significant contributions remaining unreported.
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While there are various proposed solutions, including state funding and simultaneous elections, their implementation faces significant challenges.
- Limit Party Funding to Candidates:
- Legislation: Amend the law to ensure that political parties cannot provide financial assistance to candidates beyond their prescribed expenditure limits.
- Cap Political Party Expenditure:
- Ceiling: Impose a ceiling on the total expenditure of a political party, based on the individual expenditure limits of its candidates.
- Expedite Election-Related Cases:
- Judicial Efficiency: Appoint additional judges to High Courts to expedite the disposal of election-related cases, deterring violations of expenditure limits.
By implementing these reforms, we can create a more equitable and transparent electoral system, reducing the influence of money and promoting fair competition.
October 29, 2024
