EC hikes expenditure limits for candidates

Subject – Polity

Context – EC hikes expenditure limits for candidates ahead of Assembly polls

Concept –

The Election Commission on Thursday announced a hike in expenditure limit for candidates to Rs 95 lakh (up from Rs 70 lakh)for Lok Sabha elections, and Rs 40 lakh (up from Rs 28 lakh) for Assembly polls.
The government’s decision is based on the poll panel’s recommendation.
- The committee found that there has been a substantial increase in the number of electors and Cost Inflation Index since 2014.
- It also factored in the changing modes of campaigning, which is gradually shifting to virtual mode.
For Assembly elections, the revised expenditure limit for candidates is Rs 40 lakh for big states, up from Rs 28 lakh. Candidates in smaller states can spend a maximum Rs 28 lakh instead of the earlier limit of Rs 20 lakh.

Expenditure Limit

It is the amount an election candidate can legally spend for their election campaign and has to account for, which includes expenses on public meetings, rallies, advertisements, posters, banners vehicles and advertisements.
The limit prescribed by the ECI is meant for legitimate expenditure because a lot of money in elections is spent for illegitimate purposes.
It has often been argued that these limits are unrealistic as the actual expenditure incurred by the candidate is much higher.

Current Scenario

At present, under Rule 90 of the Conduct of Election Rules, 1961, a candidate contesting Lok Sabha polls can spend up to Rs 70 lakh and up to Rs 28 lakh in an assembly election depending on the state in which s/he is contesting polls.
Under Section 77 of the Representation of the People Act, 1951, every candidate shall keep a separate and correct account of all expenditure incurred between the date on which he has been nominated and the date of declaration of the result.
All candidates are required to submit their expenditure statement to the ECI within 30 days of the completion of the elections.
An incorrect account or expenditure beyond the cap can lead to disqualification of the candidate by the ECI for up to three years, under Section 10A of the Representation of the People Act, 1951.
It can be noted that there is no cap on a political party’s expenditure, which is often exploited by candidates of the party.
- However, all registered political parties have to submit a statement of their election expenditure to the ECI within 90 days of the completion of the elections.