Money power in elections
Topic: Electoral Reforms: Money, Criminalisation and Simultaneous Elections · NCERT: Class 8, Ch 5 "Universal Franchise and India's Electoral System"; Class 9, Ch 7 "Elections"
Meaning
Money power in elections means using large, often unaccounted (untaxed, hidden) funds, gifts and vote-buying to sway voters. It makes contests unequal and can lead to favours for donors after the election. NCERT (Class 8) names money as a major challenge to Indian elections. The law checks money power in several ways:
- caps on how much a candidate can spend;
- reporting of donations above ₹20,000;
- a ₹2,000 limit on cash donations;
- a cap on corporate donations;
- a ban on foreign funding.
Party spending is still not capped.
Example
Before the 2024 polls, the ECI seized about ₹8,889 crore in cash, drugs, liquor and freebies. In the same year, the Supreme Court struck down the electoral bond scheme, which had hidden donors' identities from voters.
Don't confuse with
- Muscle power: the use of force, intimidation or criminal backing to win votes. It is a separate problem, dealt with mainly through criminalisation reforms.
Related concepts
- Election expenditure limits
- Star campaigner
- Section 29C of the RPA 1951
- Section 13A of the Income Tax Act 1961
- Cash donation limit
- Corporate donations to political parties
- Foreign funding of political parties
- Electoral trusts