India’s upcoming general election is on track to become the world’s costliest, surpassing a staggering $14 billion in anticipated spending, despite the recent abolition of the electoral bonds system by the Indian Supreme Court.
The decision to scrap electoral bonds has drawn renewed attention to the contentious financing of elections in the world’s largest democracy, which is expected to hold its general elections in April and May this year.
According to N Bhaskara Rao, chairman of the Centre for Media Studies in New Delhi, which monitors political expenditure, political parties and candidates are projected to expend more than 1.2 trillion rupees ($14.4 billion) during the electoral process, making it the most expensive in history.
This estimate dwarfs the approximately $14.4 billion spent during the 2020 US presidential and congressional races, as reported by OpenSecrets.org, an organization tracking election spending.
The electoral bonds system, introduced by Prime Minister Narendra Modi’s government in 2017, allowed donors, including corporations, to anonymously fund political parties. Despite its subsequent condemnation by opposition members and civil society groups, who argued it facilitated corruption and money laundering, its abolition has not deterred expectations of record-breaking election spending in India this spring.
“Money matters in Indian elections. Unaccounted cash plays an important role in securing votes,” stated Niranjan Sahoo, a senior fellow at the Observer Research Foundation in New Delhi.
N Bhaskara Rao’s estimate indicates that the 2024 Indian elections are poised to exceed double the expenditure of the previous general elections in 2019, where candidates collectively spent around 600 billion rupees ($7.2 billion).
This anticipated expenditure translates to approximately 1,240 rupees ($14.95) per eligible voter or nearly 2.2 billion rupees per parliamentary constituency, reflecting the scale of financial investment in the electoral process.
Rao attributes the surge in spending to the expanded electorate, along with increased costs associated with social media, publicity campaigns, and travel expenses.
Despite official spending limits set by the Election Commission of India, which vary between 7.5 million and 9.5 million rupees per candidate, unofficial payments, including bribes and gifts, remain pervasive throughout Indian election campaigns.
The ruling Bharatiya Janata Party (BJP), although the primary beneficiary of the now-defunct electoral bonds system, continues to possess robust alternative funding sources, maintaining its status as the wealthiest party ahead of the election.
While the Supreme Court’s decision to scrap electoral bonds has been lauded by some, concerns persist regarding the resurgence of unaccounted cash donations and their impact on electoral integrity.
Former chief election commissioner of India, SY Quraishi, emphasized the importance of implementing measures to curb excessive spending and mitigate the influence of illicit funding, underscoring the imperative for a fair and transparent electoral process.