Official election expenditure limit for Lok Sabha candidates has seen a sharp rise over the years. From ₹25,000 in the first general election in 1951-1952, candidates can now officially spend ₹95 lakh. Despite the higher limit, the “invisible” expenditure by candidates is on the rise election after election.
The expenditure limit refers to the amount a candidate is allowed to legally spend on election campaigning, including public meetings, rallies, advertisements, posters and banners, and vehicles. All candidates are required to submit their expenditure statement to the Election Commission (EC) within 30 days of completion of an election.
During the Assembly polls of 2023, the total pre-poll seizures in Karnataka, including cash, liquor, drugs, and precious metals, had touched a whopping ₹733.43 crore till the day of election on May 10. While the EC has further raised the bar this time for ensuring inducement-free election, candidates are adopting innovative appeasement tactics.
Apart from cookers, non-stick utensil sets, mixies, smart watches, LED TVs, fans, grocery coupons, sarees/other clothing material, gold ornaments and silver utensils, the Election Commission’s major seizures this poll season include liquor, drugs and cash in huge amounts. The seizures are being mainly done in godowns and manufacturing units where the production register does not tally with the physical stocks available with them, said Venkatesh Kumar R., Additional Chief Electoral Officer (CEO) in Karnataka.
Set realistic limits
Election experts, who are of the view that realistic spending limits need to be set by the EC in consultation with all political parties, said “invisible” expenditure cannot be controlled as long as the thriving black money economy exists.
Trilochan Sastry, Chairman and Founder of Association for Democratic Reforms (ADR), said realistic limits on “visible and invisible” expenditure need to be set by EC in consultation with all political parties. “Without realistic limits we do not have a level playing field in elections as a wealthy candidate can totally outspend other candidates. Such limits are there in other countries to ensure this. Party heads need to then sign an affidavit that they will adhere to the limits,” Professor Sastry said.
He said the EC should be prepared to countermand elections where limits are crossed. “EC has expenditure observers in each constituency. Their observations should result in quick action. Public also needs to be made aware that they should not vote for those who overspend as it is against the rule agreed by political parties. This awareness campaign should be taken up by the EC,” he said.
Plug black money economy
Sandeep Shastri, National Coordinator of Lokniti Network (that conducts Election Studies), attributed the problem of “invisible” expenditure by candidates to the thriving black money economy. “As long as this parallel economy exists, there is no way you can control invisible expenditure. The expenditure by candidates will keep increasing because the source is available and as long as you do not plug the black money economy, the appetite to gain resources from the parallel economy will always be there for candidates. Just putting a curb on the expenditure does not solve the problem. You need to put a curb on the source of funding,” he said.
He said unaccounted for wealth in the society finds its way into campaign expenditure because it is an opportunity to convert that into white money.
