Examining the Rising Costs of Elections in India and Potential Reforms

Examining the Rising Costs of Elections in India and Potential Reforms

Sub :Polity

Sec: Elections

Why in News

The soaring costs associated with elections have become a subject of concern globally and in India. The Centre for Media Studies (CMS) recently estimated that the expenses incurred by political parties during the 2024 Indian general election reached around ₹1,00,000 crore. With countries like the United States and the United Kingdom also witnessing high election expenditures, there is growing debate on managing costs and curbing unethical practices in the electoral process.

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.

Candidate Limits: In India, election expenditure limits for candidates are capped by the Election Commission of India (ECI). These limits vary based on constituency size:

• Lok Sabha Constituencies: ₹95 lakh in larger states, ₹75 lakh in smaller states.
• Legislative Assemblies: ₹40 lakh for larger states, ₹28 lakh for smaller states.

Political Party Spending: Currently, there are no expenditure limits for political parties during elections, which has led to substantial unregulated spending.

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.

International Standards for Election Financing:

United States: The estimated expenditure for the upcoming U.S. presidential and congressional elections is around $16 billion, with $5.5 billion allocated for the presidential race and $10.5 billion for congressional elections.

United Kingdom: Political parties in the U.K. can spend up to £54,010 per contested constituency, totalling a maximum of £35 million if contesting all constituencies.

Key Challenges of Rising Election Expenditures:

Impact on Democratic Integrity: High election costs often drive a dependency on large donations from organizations and individuals, fostering a relationship between elected officials and major donors. This creates a barrier for average citizens seeking to enter politics, potentially skewing representation.

Excessive Spending in India: Despite legal expenditure limits, candidates frequently surpass these caps, while political parties operate without spending restrictions. Around 35% of expenses were directed toward campaigns and publicity, with an estimated 25% reportedly distributed illegally to voters.

Corruption Cycle: Inflated election spending contributes to corruption, as candidates often seek returns on their investment, creating a cycle where political financing drives governance decisions.

Reforms to Address Election Costs

Indrajit Gupta Committee (1998) and Law Commission Report (1999): Both reports proposed state funding for elections, wherein the government would subsidize election expenses for candidates nominated by recognized political parties. Although promising, this proposal faces challenges in terms of feasibility and implementation.

Simultaneous Elections: Conducting simultaneous elections is viewed as a potential solution to curbing costs. However, it raises concerns related to federalism and would require significant constitutional amendments.

Practical Reforms Based on ECI’s Recommendations

The Election Commission’s 2016 report on “Proposed Electoral Reforms” suggests practical steps for equitable election expenditure:

1. Candidate Funding Limitations: Amend the law to include “financial assistance” from political parties within the candidate’s expenditure limit.
2. Cap on Political Party Expenditure: Set a cap on political party expenditures, calculated as the candidate’s expenditure limit multiplied by the number of candidates fielded by the party.
3. Judicial Oversight: Appoint additional judges in High Courts for speedy resolution of election-related cases to act as a deterrent against electoral malpractices.