Examining the Price Tag of Indian Elections: How Much Money is Spent?

According to these regulations, candidates cannot exceed Rs 95 lakh for larger constituencies and Rs 75 lakh for smaller ones

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Finance Minister Nirmala Sitharaman’s recent revelation about declining an electoral offer due to financial constraints has reignited discussions about the exorbitant costs associated with contesting elections in India. Sitharaman’s statement sheds light on the intricate financial dynamics underlying political campaigns and raises questions about the affordability of democratic participation.

In India, the Election Commission sets strict spending limits for candidates vying for Lok Sabha seats. According to these regulations, candidates cannot exceed Rs 95 lakh for larger constituencies and Rs 75 lakh for smaller ones. However, there are no restrictions on the total expenditure by political parties during elections, allowing them to allocate funds as they deem fit.

Moreover, expenses incurred on star campaigner rallies or events are categorized as party expenditures rather than individual candidate expenses. This distinction enables parties to host high-profile events without exceeding individual spending limits, providing significant financial leverage during campaigns.

Despite these regulations, it is widely believed that actual campaign expenditures often surpass the stipulated limits. The 2019 Lok Sabha elections were particularly notable for their staggering costs, with estimates suggesting a total expenditure of Rs 55,000-60,000 crore by candidates and political parties combined. This figure represents a doubling of expenses compared to the 2014 elections and a six-fold increase from 1999.

Breaking down these figures reveals the astronomical sums involved in electoral battles. On average, each seat saw expenditures exceeding Rs 100 crore, translating to approximately Rs 700 per voter. With an average of 15 candidates contesting per seat, parties and candidates collectively spent an average of Rs 7 crore per candidate per seat.

Chief Election Commissioner Rajiv Kumar’s recent announcement regarding the significant increase in seizures during elections further underscores the magnitude of expenditure. Seizures of nearly Rs 3,400 crore in cash and other items during the 2022-23 elections represent an 835 percent surge compared to the previous term. Notably, Telangana alone witnessed seizures amounting to over Rs 700 crore in 2023, equating to roughly Rs 6 crore per seat and Rs 15 lakh per candidate.

Economists Prachi Mishra and NK Singh, relying on publicly reported estimates, have estimated that Rs 4-7 lakh crore were expended on elections in the preceding five years. This staggering sum highlights the immense financial resources mobilized during electoral processes, reflecting the scale and intensity of political competition in India.

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