Context:
According to the Centre for Media Studies (CMS), the total expenditure by various political parties for the general election to Lok Sabha 2024 was around Rs 1,00,000 crores.
Election Expenditure in India:
- The election expenditure limit for candidates is set at Rs 95 lakh for Lok Sabha seats and Rs 40 lakh for Assembly seats in larger states, and Rs 75 lakh and Rs 28 lakh respectively in smaller states.
- However, there are no expenditure limits imposed on political parties
- This is in contrast to the practise in other democracies like United Kingdom where political parties face specific expenditure limits when contesting elections.
- Political parties are required to submit annual contribution reports to the Election Commission of India (ECI) for donations exceeding Rs 20,000.
- They must also provide Annual Audited Accounts (AAA) and election expenditure reports within 75 days post-election.
Laws governing election expenditure in India:
- Representation of the People Act (RPA), 1951 – Section 77 of the act requires candidates to keep a detailed and accurate account of all expenses related to their campaign
- Section 78 requires every candidate to submit their election expense account to the District Election Officer within 30 days of the result declaration.
- Companies Act, 2013 – A non-government company with at least 3 years in operation may contribute up to 7.5% of its average net profits from the last 3 years to political parties registered under the RPA.
- Foreign Contribution (Regulation) Act (FCRA), 2010 – Political parties, candidates, and election-related entities in India are prohibited from receiving foreign contributions.
- This includes funds, gifts, donations, and any financial support from foreign sources.
Source: The Hindu
Previous Year Question
For election to the Lok Sabha, a nomination paper can be filed by
[UPSC Civil Service Exam – 2017 Prelims]
(a) anyone residing in India.
(b) a resident of the constituency from which the election is to be contested.
(c) any citizen of India whose name appears in the electoral roll of a constituency.
(d) any citizen of India
Answer: (c)
