State Funding of Elections

• 18 Nov 2023

Recently, there has been an increased talk about bringing the State Funding of elections in India.

Key Points

• State funding of polls imply the government providing funds to parties and candidates to fight elections, replacing the existing system of ploughing in private or party funds for the job.
• Its main purpose is to make it unnecessary for contestants to take money from powerful moneyed interests so that they can remain clean.
• For this to happen, state funding needs to be accompanied by strict accounting and transparency.
• The share of votes gained in the previous elections and the number of seats in legislative bodies is also used as a criterion.
• Usually, a lower limit for votes or share of votes is kept to prevent misuse of the provision by floating new parties that contest a large number of seats.
• Current state funding measures include provision of free time on public broadcasters for national parties in general elections and for registered state parties in state legislature elections.
• Besides this, national parties are provided some benefits like security, office space, utility subsidies etc.
• Another form of indirect state funding available in India is that registered political parties do not have to pay income tax.