ECI constitutes a committee to examine if election expenditure limits should be enhanced

Election Commission has constituted a committee comprising Harish Kumar, Ex. IRS and DG (Investigation), Umesh Sinha, Secretary-General, and DG (Expenditure) to examine the issues concerning expenditure limit for a candidate in view of an increase in the number of electors and rise in Cost Inflation Index and other factors.

Considering the factor of COVID-19, the Ministry of Law & Justice on October 19, 2020, has notified an amendment in Rule 90 of Conduct of Elections Rules, 1961 enhancing the existing expenditure limit by 10%. This increase of 10% will be applicable with immediate effect in ongoing elections.

The expenditure limit for a candidate was last revised in 2014 vide notification dated February 28, 2014, while in respect of Andhra Pradesh and Telangana it was revised vide notification dated October 10, 2018.

In the last 6 years, the limit was not increased despite an increase in the electorate from 834 million to 910 million in 2019 to 921 million now. Further, the Cost Inflation Index during this period has increased from 220 to 280 in 2019 to 301 now.

The committee will have the following terms of reference:-

To assess the change in the number of electors across the States/Union Territories and its bearing on expenditure.
To assess the change in the Cost Inflation Index and its bearing on the pattern of expenditure incurred by the candidates in recent elections.
To seek views/inputs of the political parties and other stakeholders.
To examine other factors that may have bearings on expenditure.
To examine any other related issue.

The Committee will submit its report within 120 days of its constitution.