In recent developments, a Private Member’s bill has been put forward in Parliament aiming to eliminate the ceiling on election spending by candidates. This proposed amendment is based on the premise that the present cap on electoral expenses often results in candidates under-reporting their actual expenditure.
Understanding the Existing Scenario
As per Rule 90 of the Conduct of Election Rules, 1961, a candidate contesting Lok Sabha polls can spend up to Rs 70 lakh while those participating in an assembly election can spend up to Rs 28 lakh based on the state they are contesting in.
Under the Representation of the People Act, 1951’s Section 77, it is mandatory for all candidates to maintain separate and accurate accounts of all expenditures incurred between the nomination date and the result declaration date. Moreover, within 30 days of the elections’ completion, candidates are obliged to submit their expenditure statement to the Election Commission of India (ECI).
In accordance with Section 10A of the Representation of the People Act, 1951, misrepresentation or exceeding the spending limit could result in the ECI disqualifying the candidate for up to three years.
Loophole in Political Parties’ Expenditure
Interestingly, there exists no cap on a political party’s expenditure, a loophole often leveraged by party candidates. All registered political parties are expected to present a statement of their electoral expenditure to the ECI within 90 days of the elections’ completion.
Key Facts About Election Spending in India
| Facts | Description |
|---|---|
| Current spending limit for Lok Sabha elections | Rs 70 Lakh |
| Current spending limit for Assembly elections | Up to Rs 28 Lakh (varies by state) |
| Penalty for incorrect account or exceeding limit | Disqualification for up to three years |
| Cap on political party’s expenditure | No cap |
Repercussions of the Proposed Bill
The newly introduced bill, which seeks to abolish the cap on election spending, comes with the argument that the current ceiling is counterproductive. It claims that the system forces candidates to under-report their spending. Moreover, it notes that these restrictions are put on legitimate expenses, while a significant portion of election money is spent on illegitimate activities.
Hence, this proposed change in legislation calls for a reconsideration of existing rules and regulations pertaining to election funding and spending in India, aiming for a more transparent and accountable electoral process.
