Rising Costs of Election Campaigns: An Analysis

Rising Costs of Election Campaigns: An Analysis

A recent report by the Centre for Media Studies (CMS) revealed that the total expenditure for the 2024 Lok Sabha elections by political parties is estimated to be around Rs 1 lakh crore. CMS is a non-profit organisation working towards fostering equitable development and responsive governance.

Current Status of Election Expenditure in India

• Candidate Expenditure Limits: For Lok Sabha, the expenditure limit is Rs 95 lakh per candidate, while it is Rs 75 lakh for smaller states. For Assembly elections, candidates can spend Rs 40 lakh and Rs 28 lakh, depending on the state size.
• Political Party Spending: There are no limits on political party expenditures, allowing unrestricted spending. In the 2024 Lok Sabha elections, the cost per vote is about Rs 1,400, with total spending surging to nearly Rs 1 lakh crore.
• Government Advertisement Spending: Between 2018-19 and 2022-23, the central government allocated Rs 3,020 crore for advertisements, with election years seeing significantly higher spending.
• Historical Comparison: From Rs 25,000 in the first general elections (1951-52), candidates’ spending has grown substantially to Rs 75-95 lakh, while overall election expenditure has risen sixfold from Rs 9,000 crore in 1998 to Rs 1 lakh crore in 2024.
• Transparency Measures: Political parties must submit annual reports to the Election Commission for donations above Rs 20,000, along with audited accounts and election expense reports within 75 days of the election results.
• Sources of Election Funding: Political funding primarily comes from businesses and corporations, creating potential ties between donors and politicians.

Election Expenditure in Global Democracies

• United States: Election financing is dominated by individual contributions, corporations, and Political Action Committees (PACs), with Supreme Court rulings allowing Super PACs to spend unlimited amounts.
• United Kingdom: The UK imposes specific expenditure limits. Parties can spend up to £54,010 per constituency, with different caps for long and short campaign periods.

Election Expenditure Regulation in India

• Representation of the People Act (1951): Requires candidates to maintain a detailed account of all campaign-related expenses and submit the expense account within 30 days after results are declared.
• Companies Act (2013): Allows non-government companies to donate up to 7.5% of their average net profits to registered political parties.
• Foreign Contribution (Regulation) Act (2010): Prohibits political parties from accepting foreign funds or donations.

Challenges with Election Expenditure in India

• Lack of Regulation: Unlike in countries like the US, UK, Canada, and Brazil, India does not limit political party expenditures, creating an uneven advantage for wealthy national parties.
• Media Advertising: National and state parties spend heavily on media ads, overshadowing grassroots campaigns and leaving candidates with limited resources marginalized.
• Digital Advertising Disparity: National parties spend significantly more on digital platforms like Google and Meta, widening the disparity between smaller and larger parties.
• Unaccounted Money: The absence of regulation for third-party campaigners raises concerns about unaccounted money influencing elections, leading to potential quid pro quo arrangements.

This growing expenditure raises concerns about the influence of money in the electoral process and the ability of less-funded parties and candidates to compete effectively.

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