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Business News/ Opinion / A realistic limit
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A realistic limit

Expenditure limit for parliamentary elections was raised to `70 lakh, somewhat reducing chances of black money being used

Photo: Hindustan TimesPremium
Photo: Hindustan Times

In an otherwise populist list of measures taken by the Union cabinet on Friday, one positive step stood out. The expenditure limit for parliamentary elections was raised from 40 lakh to 70 lakh, somewhat reducing the chances of black money being used in electioneering.

Deciding lower and upper expenditure caps is tricky. Keep the limit too low and unaccounted-for money will flow in; raise it too high and moneyed candidates can sweep away fairness in a campaign.

In recent years, the Election Commission of India has rigidly enforced expenditure limits. This has created a level playing field for contestants. But with inflation and rising costs, the upper limit had become unrealistic. It is well known that the cost of running a campaign is higher than the prescribed upper limit. The seizures of large amounts of undeclared cash in the last general election illustrated this problem clearly. The new caps should contain it to some extent.

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Published: 28 Feb 2014, 11:56 PM IST
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