Reforming the Campaign Finance Regime in India

Abstract:     
Distortions in the current campaign finance regime in India, state funding proposals made in various government committees and literature are assessed and an alternative system based on matching grants is devised. This system provides a matching grant based on funds raised by a candidate, who secures a minimum amount of contributions from a certain number of people. These contributions are capped and the grant is deemed to be a loan, until the expenditure receipts for the sum of contributions and the grant are provided. Such a system will help in removing the distortions in the current regime and enable a more corruption-free environment.

Number of Pages in PDF File: 6

Keywords: Campaign Finance, Contributions, Expenditures, Fairness, Vote Buying, State Funding, Matching Grant

JEL Classification: P16

Accepted Paper Series