RISING COST OF INDIAN ELECTIONS: REASON, IMPACT, CHALLENGES, WAY FORWARD

Why In News?

The growing influence of capital within the electoral system has raised debates regarding the integrity of representation and the necessity for structural improvements.

Money Power in Indian Elections 

India is the world's largest democracy, but the massive and rising cost of elections poses a significant threat, risking a shift towards a plutocracy—a system where wealth governs. 

This trend directly challenges the principles of fairness and equality enshrined in the Representation of the People Act, 1951, and undermines the integrity of governance structure.

Rising Cost: The 2024 Lok Sabha elections were the most expensive in history, with an estimated expenditure of ₹1.35 lakh crore. (Source: Centre for Media Studies Report)

Wealth Bias in Parliament: About 93% of sitting Members of Parliament (MPs) have declared assets exceeding ₹1 crore, highlighting the high financial barrier for ordinary citizens to contest elections. (Source: Association for Democratic Reforms Report)

Why are Indian Elections So Expensive?

Uncapped Political Party Spending: While the Election Commission of India (ECI) caps spending for individual candidates (₹95 lakh for Lok Sabha), there is no limit on the expenditure by political parties. 

• Parties exploit this loophole to spend unlimited funds on large-scale campaigns, effectively bypassing the candidate's spending limit.

Pressure of the FPTP System: In the First-Past-The-Post (FPTP) system, where a 1-2% vote margin can determine victory, candidates are driven into intense, high-cost competition to secure a winning edge.

Dominance of "Black Money": The official spending limit is often insufficient for large constituencies. This forces candidates to rely on unaccounted cash ('black money'), especially for pre-campaign activities that occur months before the ECI's official monitoring period begins.

Money Power Undermines Democratic Principles

Exclusion of Ordinary Citizens: The high cost of elections sidelines independent candidates, smaller parties, and grassroots leaders who lack access to large funds. ADR Data clearly shows a strong correlation between wealth and electoral success.

• In the 2024 Lok Sabha elections, a candidate with assets over ₹1 crore had a 19.6% chance of winning.
• A candidate with assets below ₹1 crore had only a 0.7% chance of winning.

Rise in Criminalization of Politics: High election costs drive parties to nominate affluent candidates capable of self-funding, often involving individuals with criminal records. 

• This strengthens link between illegal wealth and political authority.
• In 2024, 46% of newly elected MPs declared criminal cases against them (Source: Association for Democratic Reforms Report).
• Experts argue that parties and voters tolerate such candidates because their illicit wealth ensures the availability of campaign funds.

Corporate Funding and the Electoral Bonds Scheme

Opacity Introduced by Electoral Bonds: The Electoral Bond Scheme (2018) was introduced with the stated aim of cleaning up political funding. However:

• It broke the direct link between a voter and information about who was funding a political party.
• It created a system ripe for quid pro quo arrangements, where corporate donors could influence policy decisions away from public scrutiny.
• It violated the fundamental right of citizens to be informed.

Supreme Court's Judgment (2024)

The Supreme Court struck down the Electoral Bond Scheme as unconstitutional.

• Violation of Rights: The Court held that anonymous corporate funding violates the citizen's Right to Information under Article 19(1)(a) of the Constitution.
• Mandate for Transparency: The Court ordered the State Bank of India (SBI) to stop issuing bonds and to disclose all details of donors and recipient political parties, restoring a crucial layer of public accountability.

Way Forward

Impose a Cap on Party Expenditure: Parliament should amend the Representation of the People Act to introduce a statutory limit on the overall spending by political parties, as recommended by the Law Commission (255th Report).

Regulate Government Advertisements: The ECI must enforce a ban on government-funded advertisements for at least six months before an election is announced to prevent the ruling party from misusing public funds for campaigning.

Implement Partial State Funding: Implement the recommendations of the Indrajit Gupta Committee (1998) on state funding of elections, such as providing free, mandated airtime on media platforms and other forms of in-kind support to level the playing field.

Learn Lessons from Global Best Practices

To reform its system, India can draw inspiration from how other mature democracies regulate political finance.

Conclusion

Restoring the health of Indian democracy requires severing the unhealthy link between private capital and political power, ensuring that the Parliament truly represents the will of the people, not just the interests of the rich.

Source: THEHINDU