Mapping the Cost of Politics in India

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As part of a global initiative to understand the “Cost of Politics” across democracies, the Observer Research Foundation (ORF) conducted a case study focusing on India. Supported by the Westminster Foundation for Democracy (WFD), the study explored the linkages between how political funds are raised and the impact such financing has on the election cycle and the quality of representative democracy.

The key feature of this study is its exclusive focus on mapping the nature of spending by candidates contesting political office, rather than examining party-level expenditure. Further, the scope of the study extends beyond elections to include the broader expenditure cycle—beginning when a candidate enters politics, builds and nurtures a political constituency, and incurs costs to secure a party nomination (or succeed in party primaries). The study also sought to understand the dynamics of post-victory expenditures, particularly constituency-wide spending. Special attention was paid to regional variations in costs and the disproportionate impact of rising political expenses on disadvantaged sections such as women, youth, Dalits, tribals, and other marginalised groups. The scope of the study was confined to understanding spending patterns associated with contests for the Lok Sabha—the lower house of the parliament, and State legislative elections.

Special attention was paid to regional variations in costs and the disproportionate impact of rising political expenses on disadvantaged sections such as women, youth, Dalits, tribals, and other marginalised groups.

To gather/generate these insights, the study employed extensive fieldwork comprising semi-structured key informant interviews and focus group discussions (FGDs) with a wide range of stakeholders—candidates contesting elections, party officials, election authorities, academics, think tanks, journalists tracking money politics, and others. These interactions were conducted across four crucial regions: North, South, East, and Central India. In addition to primary sources, the research also drew insights from a substantial body of secondary literature, including published/academic articles, books, op-eds, election expenditure reports submitted by candidates and parties, and existing research studies on campaign finance, political participation, and party functioning in India.

Major Findings of the Study

• Exponential Rise in Routine Political Expenditure: While the dominant view links rising costs to elections, the study found that an equal—if not greater—burden is borne by political aspirants in maintaining constituency presence and securing nominations from their respective parties. An aspiring politician’s routine requirements to execute socio-cultural outreach activities in their prospective constituency can start months or even years before an election bid. Attending weddings, funerals, and religious or community events incurs significant financial expectations. Additionally, maintaining a political network of party cadres, supporting constituents in distress, and funding year-round party activities in the constituency are essential and resource-intensive aspects/expectations of a political life. In short, sustaining visibility and relevance in a constituency, an aspiring candidate requires a hefty amount of money and continuous financial investment.
  
  
• Escalating Campaign Costs: The cumulative costs of election campaigns in India have witnessed a sharp increase in recent years. According to the interviews conducted for this study, an average of INR 5–10 crore has become the expenditure norm for candidates from major parties contesting a Lok Sabha seat. These figures, however, vary greatly depending on factors such as the context. For instance, if the contest occurs in a constituency where political heavyweights are competing, significantly more resources are likely to be spent. Heightened expenditure was also recorded in cash-rich states such as Tamil Nadu, Telangana, Andhra Pradesh, and Maharashtra, where the money spent by individual candidates can sometimes rise exponentially. In such contexts, candidates with limited financial resources increasingly rely on the new and emerging social media channels to reach voters and promote their agenda.
  
  
• Social Media Spending: The advent of digital campaigning has introduced new categories of expenditure and an escalation in costs, requiring candidates to hire tech experts, engage social media influencers, create and maintain social media profiles, and invest in digital political advertisements. While this form of outreach is growing in prominence, its costs remain significantly lower than traditional mobilisation expenses, such as rallies, transportation, fuel, food, and payments to workers.
  
  
• Growing Salience of Vote Buying: Vote-buying—typically in the form of cash handouts by candidates and parties in the run-up to polling—remains a persistent feature of Indian elections. However, the study found that the scale of vote-buying has increased at an unprecedented level. Even candidates initially unwilling or unable to offer inducements often feel compelled to do so in response to rival campaigns. While respondents expressed their unhappiness about the growing phenomenon of this trend/vote buying, they justified it as a chance for the ordinary person to extract something from a political system that tends to be very profitable for those involved in it. The findings indicate that vote buying has gained wider acceptance among average voters as part of the election process, not just among the poor.

As the cost of contesting elections and participating in politics has exponentially increased over the years, several structural and procedural factors have been identified in the study that are driving such costs. The study also provides some policy recommendations that entail much-needed institutional reforms and societal changes to mitigate the rising political costs and make the democratic process more accessible and inclusive.

Niranjan Sahoo is a Senior Fellow at the Observer Research Foundation.

Ambar Kumar Ghosh is an Associate Fellow at the Observer Research Foundation.

• Domestic Politics and Governance
• National Politics
• India
• cost of politics
• cost of politics study
• election expenditure in india
• election expenditure of political parties
• political campaign cost in india
• poll expenses in india

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