• The Election Commission has increased the poll expenditure limit for candidates for both Lok Sabha and Assembly polls. 

• The decision of the government is based on the recommendation made by the poll panel.

• For Lok Sabha polls, the revised expenditure limit is now Rs 95 lakh for bigger states and Rs 75 for smaller states.

• Earlier, the limit was Rs 70 lakh for bigger states and Rs 54 lakh for smaller states.

• For Assembly elections, the revised poll expenditure limit for candidates is Rs 40 lakh for big states, up from Rs 28 lakh. Candidates in smaller states can now spend a maximum of Rs 28 lakh instead of Rs 20 lakh.

• The new expenditure limits will be applicable in all upcoming polls.

• Candidates in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur can now go for increased poll expenditure.

• There is no limit on expenditure by political parties.

Why EC decided to raise expenditure limit?

• Last major revision in the election expenditure limit for candidates was carried out in 2014, which was further increased by 10 per cent in 2020 as an interim measure. Simultaneously, the Election Commission formed a committee to study the cost factors and other related issues, and make suitable recommendations.

• The committee had invited suggestions from political parties, chief electoral officers and election observers. The committee found that there has been an increase in the number of electors and Cost Inflation Index since 2014 substantially.

• It also factored into the changing modes of campaigning, which is gradually shifting to 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 per cent) and rise in Cost Inflation Index from 2014-15 to 2021-22 from 240 to 317 (up by 32.08 per cent), the committee made its recommendations to enhance the ceiling limit.

• The Commission accepted the recommendations and decided to enhance the existing election expenditure limit for candidates. The revised limits have now been notified by the law ministry.

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