NEW DELHI: An Election Commission proposal to put a ceiling on expenditure incurred by political parties during polls on the lines of candidates is under examination of the government, Lok Sabha was informed on Wednesday.
In a written response, Law Minister Ravi Shankar Prasad said the poll watchdog has proposed that there should be a ceiling on party's expenditure in all elections on the lines of a cap on expenditure for candidates.
"The proposal is under examination of the government," he said.
Based on a March 2015 consultation on political finance and a Law Commission report on electoral reforms, the Election Commission had in April 2015 issued an outcome paper which had recommended that like individual candidates, there should be a ceiling on expenditure made by political parties.
The EC had told the government that there was a 'general agreement' among participants who were part of the consultation on electoral reforms.
At present, while there is a ceiling on campaigning fund for individual candidates in the electoral fray, there is no such cap on the money political parties can spend for electioneering.
"The ceiling on expenditure must include the period before the announcement of elections, when political parties engage in widespread mobilisation and electioneering," the EC paper had said.
A candidate can spend between Rs 50 lakh and Rs 70 lakh, depending on the state he/she is contesting the Lok Sabha election from.
For all states, except Arunachal Pradesh, Goa and Sikkim, a candidate can spend a maximum of Rs 70 lakh on campaigning.