Correct Option
The correct option is (c).
Explanation
Election expenditure in India is regulated under Section 77 of the Representation of the People Act, 1951, and the Conduct of Election Rules, 1961. The Election Commission of India (ECI) enforces ceilings on candidate expenditure to ensure a level playing field and curb the excessive influence of money power in the democratic process.
Statement-wise Analysis
- Statement 1 is Correct: In recent general elections, the aggregate spending by political parties and candidates on campaigning has significantly exceeded the official administrative expenditure incurred by the government for conducting the elections. Estimates from the 2019 Lok Sabha elections indicate that total campaign spending was several times higher than the cost borne by the exchequer.
- Statement 2 is Incorrect: The expenditure ceiling differs between Lok Sabha and Legislative Assembly elections. As per the revision in 2022, the expenditure limit for Lok Sabha constituencies is ₹95 lakh for larger states and ₹75 lakh for smaller states. In contrast, the limit for Legislative Assembly constituencies is ₹40 lakh for larger states and ₹28 lakh for smaller states.
- Statement 3 is Correct: The rationale behind monitoring and capping election expenditure is to provide a fair chance to smaller parties and independent candidates who may not have access to vast financial resources. This ensures that elections do not become a contest determined solely by financial strength.
Key Takeaway: Expenditure limits apply only to individual candidates and vary based on the type of election (Lok Sabha vs. Assembly) and the size of the state. There is currently no legal cap on the expenditure incurred by political parties for general campaigning.