The last major revision in the election expenditure limit for candidates was carried out in 2014, which was further increased by 10% in 2020. Simultaneously, the Election Commission formed a committee comprised of Harish Kumar, retd. IRS Officer, Umesh Sinha, Secretary General and Chandra Bhushan Kumar, Sr. Deputy Election Commissioner in Election Commission of India to study the cost factors and other related issues, and make suitable recommendations.

The Committee invited suggestions from political parties, Chief Electoral Officers and Election Observers. Committee found that there has been an increase in the number of electors and the Cost Inflation Index since 2014 substantially. It also factored into the changing modes of campaigning, which is gradually shifting to the virtual campaign.

Having regard to demand from political parties to raise existing election expenditure limit for candidates and increase in electors from 2014 to 2021 from 834 million to 936 million (up by 12.23 %) and rise in Cost Inflation Index from 2014-15 to 2021-22 from 240 to 317 (up by 32.08%), the Committee furnished its recommendations to enhance the ceiling limit. The Commission has accepted the recommendations of the Committee and has decided to enhance the existing election expenditure limit for candidates. Accordingly, revised limits have now been notified by M/O Law, Justice and Legislative Department, which are as under:

For Parliamentary Constituencies (PCs) Earlier expenditure limit (2014) of Rs. 70 Lakh is now enhanced expenditure limit to Rs. 95 Lakh and Rs. 54 Lakh to Rs. 75 Lakh.

For Assembly Constituencies (ACs) Earlier expenditure limit (2014) Rs. 28 Lakh is now enhanced to Rs. 40 Lakh and  Rs. 20 Lakh to Rs. 28 Lakh.

 These limits will be applicable in all upcoming elections.

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