Campaign Finance Around the World

How different democracies regulate political donations and spending, from US super PACs to public funding in Europe, and what India can learn.

Every democracy must decide how political campaigns are funded. Approaches differ widely.

The United States

Individuals face contribution limits to candidates.
The 2010 Citizens United Supreme Court decision allowed corporations and unions to spend unlimited amounts on independent political advertising, leading to super PACs.
US elections have become extremely expensive, with presidential campaigns costing billions of dollars.

Europe

Many countries provide public funding to parties based on votes or seats.
Spending limits are common, as in the UK.
Free or subsidised broadcast time.
Some countries, like France, ban corporate donations entirely.

Disclosure

Most democracies require disclosure of large donations, so voters know who funds parties.

India

India’s system includes:

Limits on candidate spending, but not party spending.
Corporate donations allowed, with disclosure requirements.
The electoral bond scheme (2018-2024), struck down by the Supreme Court for violating voters’ right to information.
Electoral trusts that channel corporate donations to parties.

The trade-offs

Public funding reduces dependence on donors but uses taxpayer money.
Limits reduce inequality but may restrict speech.
Disclosure improves accountability but may deter some donors.

The public subsidy

In a European country, parties receive public money based on votes won. A small new party that crosses a threshold gets funding, helping it compete with established parties without relying on wealthy donors.

Thinking all democracies fund campaigns the same way

Approaches range from US super PACs to European public funding and donation bans.

Key takeaways

The US allows unlimited independent spending after Citizens United (2010).
Many European countries provide public funding and spending limits.
France bans corporate donations.
India limits candidate spending but not parties, and struck down electoral bonds.