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The Economics of Elections

What Indian Elections Cost

How much money is spent on India's elections by the state, parties and candidates, why costs keep rising, and what it means for democracy.

India holds the world’s largest elections. In the 2024 Lok Sabha election, nearly 97 crore people were registered to vote, and more than 64 crore voted over several phases.

Who pays?

  1. The state: the Election Commission of India and governments spend on staff, polling stations, EVMs, security and logistics.
  2. Parties: rallies, advertising, travel and campaign staff.
  3. Candidates: their own campaigns, within legal limits.

Estimates

Independent estimates, such as by the Centre for Media Studies, suggested total spending on the 2024 elections by all parties, candidates and the government ran into lakhs of crores of rupees, among the most expensive elections anywhere. Exact figures are uncertain because much spending isn’t recorded.

Why costs are rising

  • Large electorates and constituencies.
  • Media and digital advertising.
  • Rallies and helicopter travel.
  • Illegal spending on cash, liquor and gifts to voters; the Election Commission seizes large amounts during elections.

Why it matters

  • Barriers to entry: expensive campaigns favour wealthy candidates and big parties.
  • Corruption: politicians may seek to recover election costs through rent-seeking once in office.
  • Influence of donors.

Reform ideas

  • State funding of elections, proposed by committees such as the Indrajit Gupta Committee (1998).
  • Stronger disclosure of spending.
  • Simultaneous elections to reduce costs, though debated.
The candidate's budget

A first-time candidate without party backing finds that reaching voters across a large constituency requires vehicles, workers, posters and digital ads. Costs quickly exceed what she can raise, while rivals with deep-pocketed donors dominate.

Thinking elections only cost the government money

Parties and candidates spend heavily, often far more than official election costs.

Key takeaways
  • India's 2024 election had nearly 97 crore registered voters.
  • The state, parties and candidates all spend on elections.
  • Total spending is estimated in lakhs of crores, with much unrecorded.
  • High costs raise barriers to entry and risks of corruption.
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