ELECTION EXPENDITURE: A COMPARATIVE ANALYSIS

THE CONTEXT: The escalating costs of elections worldwide pose significant challenges to democratic integrity, with large donations creating a nexus between political power and financial influence. In India, the absence of expenditure limits for political parties and the prevalence of illegal voter inducements exacerbates these issues, necessitating comprehensive reforms.

BASICS OF ELECTION EXPENDITURE:

INDIA:

Expenditure Limits for Candidates:

  • Lok Sabha: ₹95 lakh in larger states, ₹75 lakh in smaller states.
  • Legislative Assemblies: ₹40 lakh in larger states, ₹28 lakh in smaller states.
  • Political Parties: No limits on expenditure during elections.

UNITED STATES:

  • Financing System: Contributions from individuals, corporations, and PACs.
  • Super PACs: No limits on spending due to Supreme Court rulings.
  • Estimated 2024 Expenditure: $16 billion total, with $5.5 billion for presidential elections and $10.5 billion for congressional elections.

UNITED KINGDOM:

  • Party Spending Limits: £54,010 per constituency, £35 million total for all constituencies.
  • Candidate Spending Limits: £46-49,000 during the long campaign; £17-20,000 during the short campaign.

THE CHALLENGES AND ISSUES:

  • High Cost of Elections: The escalating cost of elections globally has become a significant concern for democratic processes. In India, the estimated expenditure for the 2024 Lok Sabha elections is expected to reach Rs 1.35 lakh crore, more than double the Rs 60,000 crore spent in 2019. This trend is not unique to India; the 2020 US elections cost approximately $14.4 billion (Rs 1.2 lakh crore).
  • Large Donations and Political Influence: The reliance on large donations creates a problematic nexus between elected representatives and donors. This relationship often leads to:
    • Favored policies for big donors
    • Reduced focus on public interest
    • Potential for quid pro quo arrangements
  • Entry Barriers: The high cost of campaigning poses a significant barrier for well-meaning citizens and grassroots candidates who lack financial backing. This limits the diversity of political representation and can lead to a plutocracy where only the wealthy can effectively participate in politics.
  • Uneven Playing Field: Parties and candidates with more financial resources have a distinct advantage in reaching voters through extensive advertising and campaign activities, potentially drowning out less-funded voices.

INDIA-SPECIFIC CHALLENGES:

  • Exceeding Expenditure Limits: Despite the Election Commission of India (ECI) setting expenditure limits (Rs 95 lakh per Lok Sabha constituency in larger states), candidates often exceed these limits significantly. The Centre for Media Studies estimates that the actual spending is much higher than the official figures.
  • Lack of Party Spending Limits: While individual candidates have spending limits, there are no caps on political party expenditures during elections. This loophole allows parties to spend exorbitant amounts, circumventing individual candidate restrictions.
  • Illegal Voter Inducements: A significant portion of election spending goes towards illegal distribution of cash and gifts to voters. The CMS report suggests that in the 2019 elections, about 25% of the total expenditure was used for such illegal inducements.
  • Opaque Funding Sources: The introduction and subsequent scrapping of electoral bonds have highlighted the issue of opaque political funding. A large portion of political donations comes from undisclosed sources, raising concerns about transparency and potential influence.

Corruption and Electoral Integrity

  • Cycle of Corruption: Excessive campaign spending often leads to a cycle where elected officials feel compelled to recoup their investment through corrupt practices once in office. This undermines the integrity of governance and public trust in democratic institutions.
  • Influence of Money Power: The dominance of financial power in elections can overshadow the importance of policies, ideologies, and candidate merit. This shift can lead to a scenario where elections are “bought” rather than won on merit.
  • Undermining Democratic Principles: When financial muscle becomes the primary determinant of electoral success, it contradicts the fundamental democratic principle of equal representation and voice for all citizens.
  • Impact on Policymaking: The influence of large donors can skew policymaking towards the interests of a wealthy minority, potentially neglecting the needs of the broader population.

Global Perspective

  • The Global Electoral Integrity Report 2024 highlights that issues related to campaign finance and media coverage are consistently the lowest-scoring aspects of electoral integrity worldwide. This indicates that the challenges of high-cost elections and their impact on democratic processes are a global concern, not limited to any single country.

ECI PURPOSED ELECTORAL REFORMS ON ELECTION EXPENDITURES

  • Financial assistance provided by political parties to candidates should be included within the prescribed election expenditure limits.
  • Introduction of a ceiling on political party expenditures during elections. The limit should be calculated based on the number of candidates multiplied by the individual candidate expenditure limit.
  • Enhanced disclosure requirements for both candidates and political parties. Real-time reporting of election expenditure through digital platforms.
  • Appointment of additional judges in High Courts specifically for election-related cases. Fast-tracking of election expenditure violation cases.
  • Development of integrated digital platforms for expenditure monitoring. Implementation of standardized reporting formats.

THE WAY FORWARD:

  • Partial State Funding Model: As recommended by the Indrajit Gupta Committee (1998) and the Law Commission (1999), implement a partial state funding model. This could involve providing in-kind support such as free airtime on public broadcasters, subsidized office space, and campaign materials.
  • National Election Fund: Establish a National Election Fund, as suggested by former Chief Election Commissioner T.S. Krishnamurthy. This fund could accept contributions from various sources and distribute them to parties based on a predetermined formula.
  • Conditional Funding: Make state funding conditional on parties meeting certain criteria, such as internal democracy, transparency in finances, and promoting women and minority candidates.
  • Strengthening Election Commission: Enhance the Election Commission’s powers to audit party accounts and penalize violations. Establish a separate election management body to oversee campaign finance regulations.
  • Legal Reforms: Fast-track courts for election-related cases to ensure swift resolution and deter violations. Amend the Representation of the People Act to address modern campaign finance challenges.
  • Technology Integration: Utilize blockchain technology for transparent and tamper-proof recording of political donations. Develop AI-powered systems to monitor and flag suspicious campaign expenditures.
  • Corporate Donation Reforms: Cap corporate donations as a percentage of average profit over the past three years. Mandate shareholder approval for political donations by companies.

THE CONCLUSION:

Addressing the high cost of elections requires a multifaceted approach, including state funding, simultaneous elections, and robust electoral reforms. By enhancing transparency and reducing financial influence, these measures can strengthen democratic processes and ensure fair representation.

UPSC PAST YEAR QUESTION:

Q. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. 2022

MAINS PRACTICE QUESTION:

Q. Discuss the challenges posed by high election expenditures in India. Evaluate the effectiveness of proposed solutions such as state funding, simultaneous elections, and electoral reforms in addressing these challenges.

SOURCE:

https://www.thehindu.com/elections/the-burgeoning-expenditure-of-elections-explained/article68806360.ece

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