Why India's general election is among the world's most expensive

Agencies
March 13, 2019

New Delhi, Mar 13: The world's biggest democracy will soon hold what's likely to be one of the world's costliest elections. India's six-week-long vote will span the Himalayan range in the north, the Indian Ocean in the south, the Thar desert in the west and the mangroves of the Sundarbans in the east.

This time the polling exercise, due to start on April 11 and be completed by May 19, will cost an unprecedented Rs 500 billion ($7 billion), according to the New Delhi-based Centre for Media Studies. About $6.5 billion was spent during the US presidential and congressional races in 2016, according to OpenSecrets.org, which tracks money in American politics.

The CMS projection marks a 40 percent jump from the $5 billion estimated to have been spent during India's 2014 parliamentary vote. And it amounts to roughly $8 spent per voter in a country where about 60 percent of the population lives on around $3 a day.

"Most of the jump in spending will come in use of social media, travel and advertising," said N Bhaskara Rao, chairman of the Centre for Media Studies, who has advised previous governments and ran a market research group.

Social media spending is likely to be dramatically higher, surging to about Rs 50 billion from Rs 2.5 billion in 2014, Rao said. His group—which bases its projections on field interviews, government data, contracts given out, and other research—also expects a jump in the use of helicopters, buses and other transportation by traveling candidates and party workers.

Specific data can be hard to pin down, but costs are rising in general as constituency sizes increase and more candidates join the fray, said Simon Chauchard, a Columbia University lecturer who has followed elections in India.

Indian politicians feel "you've got to do new things, and crazier things, and bigger things and louder things," Chauchard said. "It's a bunch of panicky candidates throwing money around to voters but also to vendors selling all kinds of stuff useful in a political campaign."

Here's a look at where some of the money goes:

Can goats help win votes?

With more than 8,000 contestants fighting for around 543 seats, there's tough competition to win over voters. And a secret ballot ensures that a bribe can't necessarily guarantee a vote. Gifts can help indicate to India's voters that the contestant wields influence and resources, according to Chauchard.

More than 90 percent of federal-level Indian politicians said their peers feel pressured to hand out gifts like cash, alcohol or other personal goods, according to a survey by Jennifer Bussell, an assistant professor at the University of California, Berkeley.

Blenders, television sets and occasionally even goats are handed out as gifts in some areas. The Election Commission seized more than Rs 1.3 billion of unaccounted cash, gold, alcohol and drugs last year during a tight election in the state of Karnataka.

Most of the spending isn't publicly disclosed. While candidates have a legal expenditure cap, parties can spend unrestricted amounts. The biggest national parties declared a combined income of just Rs 13 billion for the year through March 2018.

Rallying the troops with chicken curry

Indian politicians love a good rally: They crisscross the country, corralling locals into large tents where they're bombarded with campaign rhetoric.

To attract a crowd, some politicians may need to offer a box of food filled with biryani or chicken curry that can be too expensive for average citizens. That's not to mention money needed for firecrackers, chairs, microphones, security and vehicles to ferry the participants back and forth.

Dummy candidates

Election Commission has long warned about dummy candidates: nominating someone with the same name as a front runner to confuse voters and split the vote.

In populous states like Uttar Pradesh, where a name can identify the caste or clan of a particular candidate, this trick can be especially helpful. Popular figures are also targeted: In 2014, actress Hema Malini was up against two other Hema Malinis, the Hindustan Times reported.

But even fielding dummy candidates cost money. The expense can go as high as Rs 120 million, according to an investigation by India Today magazine in 2016. Parties also register multiple candidates to get around legal caps on how much an individual can spend, with the most popular member getting most of the resources.

As much as Rs 26 billion will be spent on advertising in the upcoming elections, according to Zenith India, a firm that arranges for slots on TV and in newspapers. That's more than double the 12 billion that the Election Commission estimates the two main parties spent in 2014.

In February alone, more than Rs 40 million was spent on political advertising on just one site—Facebook—the company's report shows. Then there are T-shirts with the slogan "NaMo Again" (Narendra Modi Again) peddled by his camp.

Hermits and elephants

Campaign spending by political parties accounts for almost all India's election outlays. But the Election Commission has also faced large costs organizing an election with polling stations running from 15,000 feet above sea level in the Himalayas and one for a sole hermit deep in the jungles of Western India.

India's budget has allocated Rs 2.62 billion to the Election Commission this fiscal year, a new high. Some of that may be used for elephants to carry electronic voting machines to relatively inaccessible regions, and boats to ferry men and materials across the mighty Brahmaputra river in the northeast.

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Agencies
June 28,2020

New Delhi, Jun 28: With 19,906 new cases, highest single-day spike so far, India's COVID-19 count touched 5,28,859 including 2,03,051 active cases, 3,09,713 cured/discharged/migrated, according to the Ministry of Health & Family Welfare.

410 deaths were reported in the last 24 hours and the cumulative toll reached 16,095 deaths.

Coronavirus cases in Maharashtra have climbed to 1,59,133 while Delhi's tally stands at 80,188.

2,31,095 samples were tested yesterday and the total number of samples tested up to 27 June is 82,27,802, according to the Indian Council of Medical Research (ICMR).

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News Network
March 10,2020

New Delhi, Mar 10: A military transport aircraft of the Indian Air Force (IAF) brought back 58 Indians from coronavirus-hit Iran on Tuesday, official said.

The aircraft, a C-17 Globemaster, was sent to Tehran on Monday evening.

About 2,000 Indians are living in Iran, a country that has witnessed increasing numbers of coronavirus cases in the last few days.

"The IAF aircraft has landed. Mission completed. On to the next," External Affairs Minister S Jaishankar tweeted.

In an earlier tweet, he said, "First batch of 58 Indian pilgrims being brought back from Iran. IAF C-17 taken off from Tehran and expected to land soon in Hindon."

"Thanks to the efforts of our Embassy @India_in_Iran and Indian medical team there, operating under challenging conditions. Thank you @IAF_MCC. Appreciate cooperation of Iranian authorities. We are working on the return of other Indians stranded there (sic)," Jaishankar added.

The aircraft landed at Hindon airbase in Ghaziabad, from where the passengers were take to a medical facility.

According to latest reports, 237 people have died of novel coronavirus in Iran while the number of positive cases stands at around 7,000.

It is the second such evacuation by the C-17 Globemaster in the last two weeks.

On February 27, 76 Indians and 36 foreign nationals were brought back from the Chinese city of Wuhan by the aircraft of the Indian Air Force.

The C-17 Globemaster is the largest military aircraft in the IAF's inventory. The plane can carry large combat equipment, troops and humanitarian aid across long distances in all weather conditions.

Four days ago, a Mahan airline plane brought swab samples of 300 Indians from Iran to India.

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Agencies
June 14,2020

New Delhi, Jun 14: Petrol price on Sunday was hiked by a record 62 paise per litre and that of diesel by 64 paise as oil companies for the eighth day in a row adjusted retail rates in line with cost since ending an 82-day hiatus in rate revision.

Petrol price in Delhi was hiked to Rs 75.78 per litre from Rs 75.16 while diesel rates were increased to Rs 74.03 a litre from Rs 73.39, according to a price notification of state oil marketing companies.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 62 paise a litre increase in petrol and 64 paise hike in diesel price is the highest surge in rates since the daily price revision was started in June 2017.

This is the eighth daily increase in rates in a row since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus.

In eight hikes, petrol price has gone up by Rs 4.52 per litre and diesel by Rs 4.64 -- a record increase in rates in any eight days since the daily price revision was introduced.

The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of international oil prices falling to two-decade lows.

The government had first raised excise duty on petrol and diesel by Rs 3 per litre each on March 14 and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

State-owned fuel retailers IOC, BPCL and HPCL had frozen petrol and diesel prices since March 16, as if anticipating the government move and set off gains they accrued from continuing drop in international oil prices against the excise duty hike.

They, however, promptly passed the increase in local sales tax or VAT by state governments such as Rs 1.67 increase in VAT on petrol and Rs 7.10 in diesel by the Delhi government on May 4.

The total incidence of excise duty on petrol has risen to Rs 32.98 per litre and that on diesel to Rs 31.83. The excise tax on petrol was Rs 9.48 per litre when the Narendra Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.

The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices.

In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.

It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019.

It again raised excise duty on March 14 by Rs 3 per litre.

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