Why in news?
Nowadays, elections are coming up in several states, and one issue raises every time is related to election campaign funding by political parties.
A candidate or political parties spend huge funds in elections but there is no proper estimate.
Voters often neglect this issue in the noise of campaigns, leaders or media coverage etc.
What is it?
Election Expenditure-A political party or candidate uses Election campaign funding for campaigns and routine activities. The funding of political parties is a facet of campaign finance.
Political parties get funds from various sources like political members, supporters, donations etc. Election campaign funding reforms is one of the biggest issues in electoral reforms globally.
Various countries like the U.S., the EU countries have some laws to address this issue. The Election Commission of India (ECI) enforces limits on campaign expenditure of a candidate and not political parties.
The limit of poll expenditure varies across states:
Bigger states– The candidates of bigger states like Bihar, Uttar Pradesh, and Tamil Nadu are now allowed to spend up to Rs. 40Lakh in Assembly Elections, from Rs.28 lakh earlier.
Similarly a candidate contesting in the Lok Sabha election in bigger States, the revised ceiling on election expenditure is now Rs 95lakh, from Rs 70lakh earlier.
Smaller states- The candidates of smaller states like Manipur, Goa, Arunachal Pradesh, Sikkim and a few Union Territories (AGMUT states) based on the size of their constituencies and population, are now allowed to spend up to Rs. 28Lakh in Assembly Elections, from earlier Rs.20lakh.
While a Lok Sabha candidate can now spend Rs. 75Lakh, earlier it was Rs.59lakh.
Statutory Provisions-
Section 77 of the Representation of the People Act (RPA), 1951- Every candidate shall keep a separate and correct account details of all expenditure incurred between the date on which they have been nominated and the date of declaration of the result.
All candidates have to submit their election expenditure details to the ECI in a period of 30 days of the completion of elections.
Section 10A of RPA, 1951- An incorrect account or expenditure beyond the limit can result in disqualification of the candidate by the ECI for up to three years.
Section 29B of the Representation of the People Act (RPA) – It authorize political parties to accept voluntary contributions by any person or company, except a Government Company.
Issues of Political Funding-
Transparency: The introduction of Electoral Bonds creates the issue of transparency in funding, and now citizens cannot know who is funding the political parties. Unseen sources of funds lead to more spending in election campaigns, thus affecting the economy of the country.
Limits on funding: Limits are not defined properly. For instance, the upper limit has been removed, that how much funds a corporate can donate to a political party out of its profits. So there is no level playing field.
External Influence: Rich people and companies providing funds to political parties for influencing policies. Government may take decisions that benefit them rather than the voters.
Black money: One of the biggest issues of the corporate funding is the use of black money in politics. There are several gaps in our rules, the benefit of which political parties take to avoid any kind of reporting.
Committees for Electoral Reforms-
Dinesh Goswami committee: The committee recommended introduction of state funding of elections but not in cash, only in kinds so that unaccounted black money cannot be put to use by various parties particularly the big parties and thus have an edge.
Indrajit Gupta committee: This committee recommended that the state funds should only be given to recognised national and state parties and funding should be in the form of free facilities to the these parties and their candidates. It would ensure a level playing field for smaller political parties.
Way forward-
All election funding should be made transparent so that voters can know about funds.
There should be strict rules relating to electoral funding to prevent the unnecessarily influence on governments.
There should be a better level playing field so that good politicians, candidates and parties with fewer funds can also have a chance of competing in elections.
Voter can contribute to political parties or one’s favourite candidate with small donations of Rs. 10 to Rs. 1000 for long term solution. So that the elected person will work for people keeping in mind that money is raised from voters.