4.5. Provisions related to election expenses

According to the Section 77 of RPA, 1951, every candidate contesting in election to the House of the People or to the Legislative Assembly of a State, shall, either by himself or by his election agent, keep a separate and correct account of all expenditure in connection with the election incurred or authorized by him or by his election agent.

Currently the limits on expenditure by candidates are as follows:

1. Lok Sabha elections: maximum of 70 lakhs; for north-eastern and hilly states - 54 lakhs rupees.

2. State Assembly election: maximum of 28 lakhs; for north-eastern and hill states - 20 lakhs rupees.

Every contesting candidate at an election shall lodge an account of his election expenses, with the district election officer, within thirty days from the date of election of the elected candidate. An incorrect account or expenditure beyond the cap can lead to disqualification of the candidate by the ECI for up to three years, under Section 10A of the RPA, 1951.