ELECTION EXPENDITURE - POLITY News: For the first time, election expenditure details of candidates will be posted in public domain, says CEO


For the first time,
election expenditure details of candidates will be posted in public domain,
says CEO


in the news?

Intensifying its election expenses
monitoring activities, the Election Commission will now post expenditure
details of individual candidates on the public domain after every inspection.


Expenditure of Individual Candidates:

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.



Under Section
77 of the Representation of the People Act (RPA), 1951,
every candidate
shall keep a separate and correct account of all expenditure incurred between
the date on which they have been nominated and the date of declaration of the

All candidates are required to submit
their expenditure statement to the EC within 30 days of completion of an

An incorrect
or expenditure beyond the cap can lead to disqualification of the candidate by the ECI for up to three years,
under Section 10A of RPA, 1951.



The EC
frequently revises
the spending limit, largely based on cost factors and
the increasing number of voters.

There is no cap on a political party’s expenditure, which is often exploited
by candidates of the party.

However, all registered political parties have to submit a statement of
their election expenditure to the ECI within 90 days of the completion of the


Election Expenditure Limit:

The expenditure limit for candidates for Lok Sabha constituencies was increased
from Rs 54 lakh - Rs 70 lakh (depending on states) to Rs 70 lakh - Rs 95 lakh.

The spending limit for Assembly constituencies was hiked from
Rs 20 lakh - Rs 28 lakh to Rs 28 lakh - Rs 40 lakh (depending on states).

The enhanced amount of Rs 40 lakh would
apply in Uttar Pradesh, Uttarakhand and Punjab and ₹28 lakh in Goa and Manipur.


of Consideration:

In 2022, the last time the cap was
revised, the EC had formed a committee and invited suggestions from political
parties, chief electoral officers and election observers, and found that there
had been a substantial increase in the number of electors and Cost inflation
Index since 2014.


back to basics:

Inflation Index (CFI):

It is used to estimate the increase in the
prices of goods and assets year-by-year due to inflation.

It is calculated to match the prices to the inflation rate. In simple words, an
increase in the inflation rate over time will lead to a rise in the prices.

Cost Inflation Index = 75% of the average
rise in the Consumer Price Index (urban) for the immediately preceding year.

Consumer Price Index compares the current
price of a basket of goods and services (which represent the economy) with the
cost of the same basket of goods and services in the previous year to calculate
the increase in prices.

The Central Government specifies CII by
notifying in the official gazette.