We need limits on election campaign spending

election campaign spending

Syllabus
GS Paper 2 – Important aspects of governance, transparency and accountability; Salient features of the Representation of People’s Act.

Applications where to apply?
When asked about
– Electoral Reforms
– Crony Capitalism
– Corruption
– Free and fair Elections

Context
Proliferation of election spending has emerged as a pivotal concern, undermining the essence of democratic representation.

Source
The Hindu | Editorial dated 11th March 2024


Over the past decades, political campaigns have metamorphosed into costly spectacles, underpinned by excessive government advertisements and inflated expenditure by candidates and parties. Despite regulatory efforts, breaches in spending limits persist, veiling the electoral process in opacity and raising concerns about fairness and integrity.

Election funding in India presents a myriad of challenges that compromise the integrity and fairness of the electoral process.

  • Excessive Spending:
    • Candidates and political parties often engage in exorbitant spending during elections.
    • Report by the Centre for Media Studies (CMS) states that political parties spent about ₹50,000 crore during the elections with the ruling party spending about 50% of this amount and the opposition about 20%.
    • Further, there is no limit on the expenditure of political parties during elections.
    • The influx of money into elections can skew political outcomes and undermine the democratic principle of equal representation.
  • Government advertisements before elections: tend to be campaigns of the ruling party and establish personality cults.
  • Opaque Funding Sources:
    • Donations to political parties and candidates are often shrouded in secrecy, with many contributors remaining undisclosed.
    • Lack of transparency in funding sources can foster corruption and the undue influence of vested interests on political decision-making.
  • Corruption and Cronyism:
    • Illicit funds, including black money and unaccounted cash, are frequently used to finance election campaigns, leading to allegations of corruption and cronyism.
    • Candidates and parties may resort to unethical practices, such as vote-buying and patronage, to secure electoral support, undermining the integrity of the electoral process.
  • Inadequate Regulatory Framework: The existing regulatory framework governing election funding in India is often weak and ineffective, allowing for loopholes and exploitation.
  • Lack of Level Playing Field:
    • Unequal access to resources and funding creates a lopsided electoral landscape where marginalized candidates and smaller parties struggle to compete against well-funded incumbents and established political entities.
    • The concentration of financial resources in the hands of a few parties or candidates can stifle political competition.

In India, several regulatory measures have been taken to address the issue of excessive election spending and to ensure fair electoral

  • Election Expenditure Limit: The Election Commission of India sets limits on the amount of money candidates can spend during elections.
    • These limits vary depending on the size of the state. The election expenditure limit for candidates is ₹95 lakh per Lok Sabha constituency in larger States and ₹75 lakh in smaller States.
  • Supreme Court Guidelines: The Supreme Court of India has issued guidelines to regulate government advertisements in its May 2015 and March 2016 orders.
    • These guidelines aim to prevent the misuse of public funds for political gains and to ensure a level playing field during elections.
  • Transparency in Political Funding: The Supreme Court addressed issues such as the opacity of donations, by  striking down the electoral bonds scheme .

Election spending in India has become a pressing concern, necessitating reforms to ensure fairness, transparency, and accountability in the electoral process.

‘Proposed Electoral Reforms’, report submitted by the Election Commission of India in 2016, recommends:

  • Government Advertisement Regulation:
    • Ban on government advertisements six months before any general election to prevent ruling parties from using public funds for campaign purposes.
  • Limiting Financial Assistance:
    • Amend laws to ensure that a party’s financial aid to its candidates remains within the prescribed expenditure limits set for individual candidates.
    •  This prevents parties from circumventing expenditure restrictions.
  • Ceiling on Party Expenditure:
    • Implement a cap on party expenditure during elections, calculated as the expenditure ceiling for a single candidate multiplied by the number of candidates the party fields in the election.
  • Appointment of Additional Judges:
  1. Increase the number of judges in High Courts to expedite the adjudication of election-related cases.
  2. This serves as a deterrent against violations of election norms and promotes accountability.
  • Transparency in Donation Disclosures:
    • Requiring political parties to disclose all sources of campaign funding, including donations from individuals, corporations, and other entities.
    • Establishing mechanisms for public access to information on political donations to enhance transparency and public trust in the electoral process.
  • Exploration of State Funding of Elections:
    • The Indrajit Gupta Committee (1998) and the Law Commission report (1999) advocated state funding of elections.
  • Enhanced Enforcement and Punitive Measures:
    • Strengthening enforcement mechanisms to detect and penalize violations of election spending regulations, including imposing fines or disqualifying candidates found guilty of non-compliance.
  • Public Awareness and Participation:
  1. Promoting awareness and education among voters about the importance of transparent and accountable election financing practices.
  2. Encouraging public participation and scrutiny of election spending through citizen-led initiatives, media coverage, and civil society engagement.

As the nation braces for the 2024 general elections amid escalating costs, the imperative for comprehensive electoral reforms looms large. Failing to tackle the problem of high election costs threatens the core of democracy, pushing people’s voices into the shadows of excessive spending.


Related Topics

The Indrajit Gupta Committee on State Funding of Elections, was an all-party parliamentary committee set up in India in May 1998.

  • It argued that state funding would create a level playing field for political parties, especially those with limited financial resources.
  • Key Recommendations:
    • Endorsed state funding for constitutional, legal, and public interest reasons.
    • Suggested funding be limited to recognized national and state parties, not independent candidates.
    • Initially proposed partial state funding in the form of free facilities provided to parties and candidates (e.g., airtime on state media). This was due to the economic situation at the time.

The Indrajit Gupta Committee’s report is a significant contribution to the debate on electoral reforms in India.

PRS India

Indrajit Gupta Committee – Law ministry report.


Discuss the escalating costs of elections in India and its implications on the democratic process. [150 words]


  1. Begin by briefly explaining the concept of election costs and its relevance in the Indian context.
  1. Discuss the trend of escalating costs of elections in India:
    • Provide data or examples to substantiate the increasing trend.
    • Discuss the factors contributing to this escalation.
  2. Discuss the implications of escalating election costs on the democratic process:
    • Explain how it impacts the level playing field, potentially favoring wealthier candidates or parties.
    • Discuss its influence on policy-making, possibly leading to favoritism or corruption.
    • Discuss its effect on political participation, potentially discouraging less affluent candidates.
  1. Conclude by summarizing the implications of escalating election costs on India’s democratic process.
  2. Highlight the need for reforms to ensure fair and inclusive elections.

Remember to provide a balanced answer, incorporating relevant facts and figures, and propose feasible solutions. Structure your answer well, with a clear introduction, body, and conclusion. Also, ensure that your answer is within the word limit specified for the exam. Good luck!


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