Candidates are required to report their spending to the Election Commission within 30 days after the election
With the Lok Sabha polls just weeks away, political candidates will have to ensure they adhere to the poll-related spending limit set by the Election Commission of India. The limit which stands at Rs 95 lakh for Lok Sabha constituencies was enhanced from its 2019 ceiling of Rs 70 Lakh following a committee’s recommendations.
The spending limit is lower for smaller states and Union Territories, for example – Rs 75 Lakh in Arunachal Pradesh, Goa and Sikkim and in Union territories, the expenditure ceiling ranges from Rs 75 lakh to Rs 95 lakh per candidate, depending on the region. For Assembly elections it is Rs 40 lakh.
The expenditure limit is the maximum amount a candidate can legally spend on election campaigning, which includes things like public meetings, rallies, advertisements, posters, and vehicles. Candidates must report their spending to the Election Commission within 30 days after the election, while political parties must do so within 90 days.
The limit set by the Election Commission is to control spending, as a lot of money is often spent unlawfully in elections. If a candidate spends more than the limit or reports incorrect spending, they can be disqualified for up to three years under the Representation of the People Act, 1951.
The spending cap aims to create a fair competition among political parties, especially those with fewer resources.
In 2020, the Election Commission of India (ECI) set up a committee comprising Harish Kumar, Umesh Sinha, and Chandra Bhushan Kumar to study the election spending limit for candidates in Lok Sabha and assembly polls. The committee examined the need to revise the expenditure limit due to the increase in the number of electors and the rise in the Cost Inflation Index. The committee invited suggestions from political parties, Chief Electoral Officers, and Election Observers.
The committee found that since 2014, there had been a significant increase in the number of voters and the Cost Inflation Index. The number of voters went up from 834 million to 936 million between 2014 and 2021, an increase of about 12 per cent. While the Cost Inflation Index rose by about 32 per cent. Based on these findings the committee recommended an increase in spending.
For Lok Sabha constituencies, the cap was increased to Rs 95 Lakh and Assembly Seats to Rs 40 Lakh.
Over the years the spending cap has been subject to multiple revisions. During the time of the first general elections in 1951-52, the limit was set at Rs 25,000 per candidate and it remained at that for about two decades. It was revised for the first time in 1971 and brought up to Rs 35,000. In 1980, it saw a major jump when it was increased to Rs 1 Lakh.
The poll-expenditure limit for candidates continued to see a rise as years passed and in 2014 it was at Rs 70 lakh which was then increased to Rs 95 Lakh, the current cap.