unacademy 12+13th January 2019 Important Editorial Discussion(Caution Ahead: On Economic Growth and Election Spending) Presented By: Prabhakar Jha
Elections in India Elections are considered to be very expensive in India and analysts frequently speculate that, with each passing election, the costs of campaigns are ratcheting further upwards. The perceived increase in campaign costs is often assumed to mean that bribes- what political scientists refer to as "vote buying"-might be on the rise What candidates actually spend their money on during these expensive campaigns remains unclear due to the paucity of credible data on real expenses.
Elections and its Effect on the Economy A major risk to the economy in the medium to long term is the absence of meaningful structural reforms that are necessary to streamline the election process. An increase in short-term economic productivity combined with populist policies eventually do more harm to the economy than good. Ahead of the general election, the government may wish to help growth by boosting spending (to appeal more voters), but any such move isill advised because with the fiscal deficit exceeding the Budget estimate by 15% in just the first eight months of the fiscal year, the government cannot crank up spending without severely affecting its finances, along with investor confidence in the economy
First, the slow but steady increases in the size of constituencies play a major role in the increased spending. Simply put, larger populations require candidates to spend more. Why Campaigns are Getting More Expensive Third, and most importantly, a steady rise in political competition and in the number of candidates contesting an election has sparked an arms race in campaign spending. Second, there may be generational changes that affect the cost of campaigns
GS And GA faculty @ Mahendra's Coaching Institute. Teaching Polity, and international relations for 7 years