Addressing Concerns: Implementing Limits on Election Campaign Spending in India
15 May 2024 2 mins Personal Finance
Current Election Expenditure Status
- Government Ad Spending: From 2018-19 to 2022-23, the central government spent ₹3,020 crore on advertising, with a peak of ₹1,179 crore during election years.
- Candidate Expenditure Limits: Candidates have limits, such as ₹95 lakh per Lok Sabha constituency in major states.
- Party Spending: Political parties have no spending caps; in 2019, parties spent an estimated ₹50,000 crore.
Concerns
- Influence of Money on Fairness: High spending by major parties like BJP and Congress raises concerns about the fairness of elections.
- Illegal Practices and Opacity: Apart from legal expenditures, the distribution of cash to voters and opaque funding sources contribute to corrupt electoral practices, undermining the democratic process.
Proposed Reforms by the Election Commission of India (ECI):
- Ban Pre-Election Government Ads: Implement a restriction on government advertisements six months before elections to prevent the exploitation of public cash for political purposes.
- Equalize Spending Limits: Implement spending caps for parties, akin to those for candidates.
- Transparent Party Financing: Implement measures for greater transparency in party financing to reduce the influence of undisclosed donations and corporate funding.
- Swift Legal Action on Violations: Appoint additional judges to the High Courts to expedite the adjudication of election-related matters, so discouraging overspending and other infractions.
- Explore State Funding: Consider governmental funding for elections, as proposed by the Indrajit Gupta Committee (1998) and the Law Commission report (1999), to lessen reliance on private donations.
- Increase Transparency: Increase transparency in campaign financing to ensure accountability and fairness.
- Address Illegal Practices: Crackdown on illegal actions like cash distribution to voters and undeclared funding sources.
- Promote Fair Competition: Ensure fair competition among political parties by limiting campaign spending and financing sources.
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