Explained: How much it costs to contest elections in India
Union Minister Nirmala Sitharaman has declined Bharatiya Janata Party chief JP Nadda's offer to contest Lok Sabha elections. Currently serving as the finance minister, Sitharaman has said that she does not have "that kind" of money to contest elections. This statement raised questions about the cost of contesting an election in India. Here's what we know.
Election spending limits and personal wealth
In India, the cost of running for office is largely determined by a candidate's wealth. The Election Commission of India (ECI) has set spending limits for Lok Sabha seats at Rs. 95 lakh in larger constituencies and Rs. 75 lakh in smaller ones. Despite these caps, candidates often exceed them by investing additional funds into campaigning and voter incentives.
Sitharaman's financial status and political career
Sitharaman, a member of the Rajya Sabha, has never run in a Lok Sabha election that requires extensive campaigning. When she ran for her current position in 2016, she declared a net worth of approximately Rs. 2.5 crore. This is significantly lower than the assets declared by other candidates for the upcoming general elections. For instance, DK Suresh from Bengaluru Rural and Ashok Kumar for Erode seat have declared assets worth over Rs. 593 crore and Rs. 583 crores respectively.
Wealth not always a guarantee of election success
Notably, wealth does not always guarantee success in Lok Sabha elections. In 2019, six out of the top ten wealthiest candidates were from the Congress and lost their deposits despite their substantial assets. The richest among them was independent candidate Ramesh Kumar Sharma from Patliputra, Bihar who declared assets worth over Rs. 1,107 crore but lost. Among those who emerged victorious was Congress leader Nakul Nath who had declared a net worth of over Rs. 660 crore in 2019.
Wealthiest members of the Rajya Sabha
The Rajya Sabha also has its share of wealthy members, with 27 current members being billionaires. The average asset of a Rajya Sabha MP is Rs. 81 crore. The wealthiest among them is Bharat Rashtra Samithi leader and business tycoon Bandi Saradhi with a net worth of Rs. 5,300 crore. Notably, actor-turned-politician Jaya Bachchan ranks among the top ten richest Rajya Sabha MPs with a net worth of over Rs. 1,500 crore along with her superstar husband Amitabh Bachchan.
