KOCHI: The state economy, battered by floods and alarming fiscal health, is set to receive a minor boost with an estimated Rs 100-150 crore being pumped in towards election expenditure, of which majority is unaccounted cash.
Gulati Institute of Finance and Taxation former faculty Jose Sebastian said even though the Election Commission (EC) keeps a vigil on violations — like ‘cash for vote’ in certain financially-backward areas, payment for party workers for campaigning and inflow of black money into the system are rampant.
“Large sums of such expenditure normally filter into the lower sections of the society and end up in the economy. We can expect a 5-10 per cent growth for local businesses,” said Jose.
A study by the Centre for Media Studies, Delhi, estimates a staggering Rs 50,000 crore to be spent during the 2019 Lok Sabha elections, most of which illegal. In 2014, Rs 35,000 crore was spent, with Rs 8,000 crore only being accounted money. With the polling in the state scheduled for April 23, the EC is set to keep a tab on the expenditure and model code of conduct (MCC) violations.
Kerala’s joint chief electoral officer Jeevan Babu K said the EC has issued strict guidelines to returning officers of each constituency. “Static surveillance squads, flying squads, video surveillance and viewing teams will be deployed in each constituency to comprehensively scan activities,” said Jeevan. He said squads would carry out inspections and stringent action would be taken with respect to complaints received through C-Vigil app and voter helpline.
A candidate for the LS elections can spend only Rs 70 lakh for campaigning and is required to furnish his/her returns within 90 days of polling to the EC. Election watchdog Association for Democratic Reforms (ADR) has highlighted the proportion of unaccounted money in its report. It pointed out that though candidates have constantly claimed the expenditure limit set is very low, the election expense declarations of 537 MPs analysed from Lok Sabha 2014, the average amount of money spent by them in the elections is only about Rs 40.33 lakh, which is 58 per cent of the limit. The ADR had also reported a total Rs 299 crore in cash, 1.61 crore litres of liquor and 1,707 crore mg of drugs were seized across the country during the LS 2014 elections.
Nomination filing begins today