Chapter: Gist of Press Information Bureau Articles

Topic: Expenditure on Holding Elections

Q. What is the procedure of expenditure on holding elections?

• The expenditure incurred on the Lok Sabha Elections (be it a General Election or Bye-elections) is entirely borne by the Central Government when such elections are held independently according to the policy of the Government.
• However, the expenditure on State/Union territory Legislative Assemblies is shared on a half and half basis only when such elections are held simultaneously with the Lok Sabha elections.
• The expenditure incurred on State Legislature(s) and Village, Block and District level Panchayats is related to the State Government concerned.
• For conduct of General Election to Lok Sabha, the State/Union Territory (with legislature) Governments proposes their demands to the Central Government as provisional estimates.
• The Central Government releases the funds to the State/Union territory Governments keeping in view the demands received from them and availability of funds for the election purpose. This exercise is of a routine nature and funds are released on a year-to-year basis.

• The State/ Union Territory Governments incur the expenditure for conduct of General Elections to Lok Sabha from their Consolidated Fund and thereafter make a claim for re-imbursement of the incurred amount to the Central Government.

• The Central Government releases the funds on provisional basis and the election accounts of the State/ Union territory Governments are settled only after receipt of the Audit Certificates from the Office of Accountant General of the concerned State/Union territory.

• The demand raised by the State/Union Territory Governments on the basis of estimated expenditure for conducting of elections for the Lok Sabha in the year 2009 was approximately Rs.1,114.35 crore.

• Since the Government has not received the Audit Certificates from all the State/ Union Territory Governments, it is not possible to furnish the total actual expenditure incurred on the 2009 General Election to Lok Sabha.

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