Spending Limits for Candidates

How India caps what individual candidates can spend on campaigns, why the limits are widely seen as unrealistic, and the loopholes around them.

India limits how much each candidate can spend on an election campaign.

The limits

The limits were raised in 2022:

Up to 95 lakh rupees for Lok Sabha candidates in larger states, lower in smaller states.
Up to 40 lakh rupees for assembly candidates in larger states.

Candidates must keep accounts and submit them to the Election Commission.

Loopholes

Party spending isn’t capped in the same way. Parties can spend large amounts promoting candidates, which doesn’t count against individual limits.
Supporters may spend on candidates’ behalf informally.
Unreported cash spending.

Are the limits realistic?

Many observers argue actual spending often far exceeds the limits, especially in competitive seats, and that declared expenses are frequently below the cap.

Enforcement

The Election Commission deploys expenditure observers.
Seizures of cash, liquor and gifts during elections.
Candidates exceeding limits can be disqualified, though this is rare.

The economic view

Spending limits aim to level the playing field, but without limits on party spending and strong enforcement, they may push spending into hidden channels.

The declared account

A candidate in a hotly contested seat declares spending of 60 lakh rupees, well under the limit. Observers note dozens of rallies, hundreds of vehicles and heavy advertising, suggesting actual spending was far higher.

Thinking spending limits cap total election spending

Party spending and unreported spending aren't captured by candidate limits.

Key takeaways

Lok Sabha candidates in larger states can spend up to 95 lakh rupees since 2022.
Party spending isn't capped the same way.
Actual spending often appears to exceed declared amounts.
Weak enforcement pushes spending into hidden channels.