For Greater Transparency, EC Proposes to Reduce Candidates’ Cash Expenditure Limit from Rs 10K to Rs 2K

GG News Bureau

New Delhi, 6th Nov. The Election Commission has proposed lowering the amount a candidate contesting elections can pay in cash for campaign-related expenses from Rs 10,000 to Rs 2,000 in order to make their transactions more transparent.

The poll panel recently proposed to the government that the Conduct of Election Rules be amended to require that all cash payments in excess of Rs 2,000 made to a person or entity for election-related expenses be made either through account payee cheques or online and digital means.

According to the sources, this is part of an effort to increase transparency in campaign spending by individual candidates and to eliminate “fungibility.”

Candidates must now ensure that all payments in excess of Rs 10,000 are made by cheque, draft, or bank transfer through a bank account opened specifically for election expenditure.

Candidates must open a separate bank account for election expenditures at least one day before filing their nomination, according to the EC’s instructions.

Candidates must also keep day-to-day accounts, a cash book, and a bank book from the date of nomination to the date of results declaration (both dates inclusive).

They must also include all expenses incurred on the date of nomination filing.

A candidate must submit the election expenditure account to the District Election Officer (DEO) within 30 days of the poll results being announced.

The EC stated last week, when announcing the schedule for the Gujarat Assembly elections, that it has issued a Standard Operating Procedure for flying squads and static surveillance teams constituted for checking excessive campaign expenses, distribution of items of bribe in cash or in kind, movement of illegal arms, ammunition, liquor, or antisocial elements in the constituencies during the election process.