Lok Sabha Elections 2024: ECI Keeps Close Watch on Election Spending Limits

New Delhi- As India gears up for another round of democratic exercise with the ongoing general elections, the Election Commission's vigilance over poll expenditure remains paramount. Over the years, the permissible spending limits for candidates have seen significant revisions, reflecting the changing dynamics of electoral campaigns and economic factors.

The ECI is keeping a close watch on the election spending, including by political parties and individual candidates. According to the EC, the total amount of funds that political parties can spend on election campaigning is Rs 95 lakh for Lok Sabha constituencies and Rs 40 lakh for Assembly seats. However, the expenditure limit is different for different states and union territories. In some smaller states, the limit is Rs 75 lakh and Rs 28 lakh for the Lok Sabha and Assembly, respectively.

The evolution of spending caps reflects the changing contours of Indian politics. From the meager Rs 25,000 cap in 1951-52 to the contemporary Rs 95 lakh limit, the trajectory underscores the expanding scope and scale of electoral campaigns. Subsequent revisions in 1971, 1980, 1996, and later years have mirrored the changing socio-political landscape and economic realities.

The spending limit on political parties' election spending has been increased several times since 2019. In 2019, the limit was Rs 70 lakh for Lok Sabha candidates and Rs 28 lakh for Assembly contenders. The next increase in the spending cap occurred in 2022, when the EC raised the limit to Rs 95 lakh for the current elections.

The Election Commission periodically revises spending limits, taking into account various factors such as inflation, Cost Inflation Index (CFI), and the burgeoning electorate. The Cost Inflation Index, a barometer for estimating the escalation in prices due to inflation, has steadily risen, prompting adjustments to election expenditure guidelines.

While individual candidates are subject to spending limits, political parties also play a pivotal role in financing campaigns. Parties often allocate substantial sums to support their candidates' electoral endeavors. Notably, a significant portion of the official expenditure incurred during elections is attributed to party contributions, underscoring the collaborative nature of electoral campaigns.

In adherence to electoral norms, political parties are mandated to furnish comprehensive expenditure reports to the Election Commission within stipulated timelines. These reports provide insights into the financial intricacies of electoral campaigns and facilitate regulatory oversight.