The landscape of electoral financing has become a focal point of concern globally, particularly with the upcoming U.S. presidential and Congressional elections in November 2024, projected to cost around $16 billion. Comparatively, India’s Lok Sabha elections are estimated to reach ₹1,00,000 crores, raising critical questions about the implications of such vast sums on democratic integrity and political fairness.
About Election Expenditure Limits in India
In India, the Election Commission sets expenditure limits for candidates, which stand at ₹95 lakh for Lok Sabha constituencies in larger states and ₹75 lakh in smaller ones. For Legislative Assemblies, the limits are ₹40 lakh and ₹28 lakh, respectively. Notably, political parties face no such restrictions on their overall spending, allowing for financial manoeuvring during elections. This discrepancy raises concerns about transparency and accountability in political financing.
International Standards and Comparisons
Globally, the financing of elections varies . In the United States, individual and PAC contributions are capped, yet the emergence of Super PACs has led to unrestricted spending. For the 2024 election cycle, approximately $5.5 billion is earmarked for the presidential race alone. In the United Kingdom, political parties are limited to £54,010 per constituency, translating to a maximum of £35 million for national contests. These figures highlight the stark differences in electoral financing frameworks across democracies.
Challenges of Rising Expenditure
The exponential rise in election costs has created barriers to entry for ordinary citizens wishing to participate in politics. In India, major parties routinely exceed declared expenditure limits, with reports suggesting that the BJP and Congress spent ₹1,264 crores and ₹820 crores, respectively, in the 2019 elections. However, total spending was estimated at ₹50,000 crores, indicating widespread financial irregularities and corruption.
Potential Reforms for Electoral Financing
Reform advocates, including the Indrajit Gupta Committee and the Law Commission, have proposed state funding of elections to alleviate financial burdens on candidates. This would involve the government partially covering the costs for candidates from recognised parties. However, practical implementation remains a challenge, particularly concerning the illegal cash distribution to voters. Additionally, proposals for simultaneous elections have surfaced as a potential solution to curtail rising expenditures. However, this idea raises questions about federalism and constitutional amendments, necessitating thorough debate. To create a more equitable electoral environment, several reforms could be introduced. These include amending laws to ensure that financial assistance from parties to candidates falls within prescribed limits and instituting caps on party expenditures. Moreover, increasing the number of judges in High Courts could expedite the resolution of election-related disputes, serving as a deterrent against violations.
Questions for UPSC:
- Discuss the implications of rising election expenditures on democratic processes in India.
- Evaluate the effectiveness of current expenditure limits set by the Election Commission of India.
- Compare and contrast the electoral financing systems of India and the United States.
- What reforms are necessary to ensure transparency and accountability in electoral financing?
- How could simultaneous elections impact election expenditure in India?
