State Funding of Election in India: Almost a billion people will cast votes in next few weeks in 2024. Recently, Supreme Court has termed the Electoral Bonds as unconstitutional. So what next, will this verdict will help the clean the political funding in the country. What about the idea of state funding in India. Lets try to find out answers for some of the key questions.
- Recent verdict on Electoral Bonds can clean the political funding system of India.
- How much does an election cost in India. Does India have the Costliest Election in the World ?
- How much money Political Parties receive through Electoral Bond?
- How much money can one candidate spend?
- How politician spend so much despite the election spending limit
- Can Public Funding of Elections will be solution ?
Can recent verdict on Electoral Bonds can clean the funding system of World largest democracy?
Not really, since the starting of electoral bond system, till now only Rs 16,518 crore has been received by various parties. Last year the BJP got around 60 % of its funding via Electoral bonds. So that If we just extrapolate that total funding of all parties should be around Rs 28000 Crore. But is does one believes that this is all political parties has received and spend in last 6 years ?
How much does an election cost in India. Does India have the Costliest Election in the World ?
No, it is not India. World’s largest democracy is way behind United States in terms of poltical speding. As per Centre for Media studies estimate the 2019 General election has costed 50,000 Cr Rs, that is 6 billion dollars at current rates. While as per OpenSecrets.org, the political spending in the 2020 election totaled $14.4 billion, which is more than double of the total cost of the record-breaking 2016 presidential election cycle.
How much money Political Parties receive through Electoral Bond?
According to the annual audited report submitted to the Election Commission by the Bharatiya Janata Party (BJP), the saffron party received nearly ₹1,300 crore through electoral bonds in 2022-23. The party’s total contributions stood at ₹2,120 crore in the 2022-23 fiscal, of which 61 per cent came from electoral bonds. The funding from electoral bonds to the Congress was ₹171 crore in 2022-23, down from ₹236 crore in 2021-22.
How much money can one candidate spend in elections?
Recently Election commission of India revised the expenditure limit for Lok Sabha candidates from 54 to 70 lakhs to 70 to 95 lakh respectively. Further, the spending limit for assembly constituencies hiked to Rs 28 lakhs and 40 lakhs.
Are these election spending limits realistic?
The limit prescribed by the ECI is meant for legitimate expenditure because a lot of money in elections is spent for illegitimate purposes. It has often been argued that these limits are unrealistic as the actual expenditure incurred by the candidate is much higher.
Not only that, in December 2019, a private member’s bill was introduced in the Parliament which intended to remove the cap on election spending by candidates.
The move was taken on the grounds that the ceiling on election expenses ends up being counterproductive by encouraging candidates to under-report their expenditure.
How politician spend so much despite the election spending limit
Most of the spending isn’t publicly disclosed. Lot of time huge amount of cash is used to distribute to voters or to buy liquor and clothes etc. While candidates have a legal expenditure cap, parties can spend unrestricted amounts. There is no cap on a political party’s expenditure, which is often exploited by candidates of the polling parties.
Can Public Funding of Elections will be solution ?
Overall in the world,116 countries have introduced direct public funding to political parties.However, the 86 % European countries provide state subsidies to political parties. Germany, UK and France are the leading examples. At present more than seven Latin American countries have state funding system.
How India has dealt with the Idea of State Funding of Elections?
India has debate and deliberated on the issue at length. Law Commission Report of 1999, Venkatachaliah Committee Report of 2002, and in 2015 Law Commission Report (2015) have persisted about setting the regulatory frameworks first. Only then, country should look for complete state funding.
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