Economic Highlights
New Delhi, 27 March 2009
Crores Spent On Elections
COMMON MAN A BENEFICIARY
By Shivaji Sarkar
Elections are not only the biggest democratic exercise, but involve
a process of huge cash flow to the society. According to some estimates, the campaigning
trail alone, involves over Rs 10,000 crore of spending by political parties. If
one adds government expenses to conduct the polls, the figures will run into another
few thousand crore. While the exact amount will never be known the fact is that
the money spent percolates down to the city, mohalla and the village level.
How much does the Government spend on conducting elections? Though
a comprehensive figure is not available, the Union Budget puts the total
election expense at Rs 1408-1120 crore in the financial year beginning April
and Rs 388 crore till March end. The government expects to spend Rs 850 crore
for the polling process alone.
These, however, do not include many expenses incurred by the
State governments, such as maintenance of law and order, transportation and
redeployment of its staff etc. At a modest scale this would add up to over Rs 1,000
crore.
Another component not taken into account is of corporate
expenses. These are largely two kinds-- donations to political parties and indirect expenses such as providing
vehicles, telephones, planes, fuel, etc and organising meetings and sundry
other things, which could add up to another Rs 1000 crore. In one such General election
an automobile company had a demand for 1,000 new vehicles on ‘a loan’ to a
political party for campaigning, which reportedly to cost
At a modest scale, poll expenses are likely to go beyond the
whopping figure of Rs 13,000 crore. In fact, some people have questioned the
rationale of such huge expenditure at this time of recession. The argument being
that had this been invested to resuscitate the economy it would have paid
higher dividends. This view is partially correct. People have been conditioned
to think this way by the organized sector of the economy, which reaps maximum
benefit of most official and structured spending.
Election expenditures, on the contrary, are not structured.
Even the Central government poll expenditure of Rs 850 crore has been allowed
to be spent at a local level to meet routine matter and exigencies. Similar
would be the case of many state governments’ list of expenses.
It is no secret that at least half of such expenditure
benefits people who work in the unorganized sector, in many cases
independently. It benefits the ‘small people’ such as the painters, printers,
compositors, designers, carpenters, leaders’ image cut-out makers, local tent (shamiana) providers, decorators, caterers, tea shop owners, rickshaw pullers,
auto-rickshaw drivers, small truck and taxi operators, photographers,
videographers, small hotels, casual labourers etc. Even folk singers, dancers,
puppeteers and similar other non-descript people adding colour to election
meeting reap the benefit of the great democratic exercise.
Political parties too make payments to similar kinds of
people, numbering lakhs and some living in the remotest parts of the country,
where no official, political worker or anyone else who matters, pays a visit in
the normal course. Activities of parties are gradually being outsourced, such
as planning campaign strategies, speech writing for many of their ‘firebrand’
leaders and filling out of voters’ slips, which was earlier handled by
volunteers. The latter are now by and large engaged in reaching out to the rising
number of voters.
Those opposing huge poll expenses thus do not realize the kind
of hope and confidence this democratic exercise generates. It benefits the
poorest entrepreneur as also the poorest unskilled person. The money spent
directly benefits people who get no sop from the government or from a political
person. For example let’s take the case of a plastic toy maker. With elections
approaching he finds himself busy producing party badges, to be worn by its workers
and make money. But he is not alone. The man who liaises between the party and
the toy maker too would make some money.
Interestingly, while most government allocations meant for
the poor do not reach them, in election time the situation is just the
opposite. The poor matter as they are the voters. They must be taken care of.
And it is through such small spending that political parties reach out to the
otherwise distant people. These expenses may not be of any importance to the economist
theoreticians, but are part of the big kitty that goes into the polls..
One industry, which does earn a lot from elections, is the Media.
It manages to make thousands of crores through advertising, helping in campaign
process and conducting surveys for different political parties. Normally most
corporate advertising is managed from Mumbai or Delhi. But election advertising is decided at
all three levels i.e. national, State and district so that parties could reach
out to the last man.
The beneficiaries include small and medium newspapers,
television channels and advertising companies. Not only do elections at times
help small papers and media organisations survive but also contribute in their
own little way to help people choose their representative. An independent
press, therefore, does play a crucial role wherein the electorate is given chance
to make an informed choice, a must for a vibrant democracy. Recall that Pt
Jawaharlal Nehru was of the firm opinion that elections were the time for
educating the people at a mass level.
Of late, the Election Commission has sought to curb poll
expenditure. In fact it has sought to tighten the rules and requirements while
filing of poll expenses by candidates and political parties. Its efforts are
well-meaning .i.e. to check the influence of ‘money power’ in elections. It
must be a free and fair poll and that the electorate should not be swayed by
the largesse doled out during election fever. It would be worth having a close look
at the expenses filed by candidates at the end of this mammoth exercise.
Till then, the following weeks will witness the ensuing elections
pick up steam and the much-sought after voter benefit from it. The investments
made, however, should reflect in a definitive mandate to ensure the nation
progresses in these difficult times. --INFA
(Copyright, India News and Feature
Alliance)
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