APSC CCE Mains PYQ Solved | APSC CCE 2023 Model Answer

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APSC Mains GS Paper 2: 2023: Can State funding of elections bring in transparency in the poll process? How do the other democracies handle this issue? (10 marks, 150 Words)

Model Answer:

The Indrajit Gupta Committee (1998) and the Law Commission of India (170th Report) strongly advocated for partial state funding of elections to curb the menace of “black money” and eliminate the corporate-politician nexus in public life.

State Funding as a Tool for Transparency: Potential Benefits

State funding refers to the government providing funds to political parties or candidates to contest elections, either in cash or in kind (e.g., free airtime, subsidized fuel, or printing materials).

Leveling the Playing Field: It reduces the disproportionate advantage enjoyed by wealthy candidates and ruling parties, enabling honest, grassroots leaders (including women and youth from regions like the Northeast) to contest equitably.
Curbing Corporate Cronyism: Following the Supreme Court’s landmark judgment striking down the Electoral Bonds Scheme (2024), state funding offers an alternative that eliminates the quid-pro-quo culture between corporate donors and policy formulation.
Enhanced Audit and Accountability: Receipt of public money legally mandates political parties to open their accounts to public scrutiny, annual audits by the Comptroller and Auditor General (CAG), and disclosure under the RTI Act.
Breakdown of the Demarcation: It shifts the political focus from fundraising capacity to policy-driven manifestos, fostering a healthier ideological discourse.

Limitations in Ensuring Absolute Transparency

Risk of Double Funding: State funding may not completely eliminate illegal cash; candidates might accept state funds while simultaneously utilizing unaccounted black money under the table.
Fiscal Strain on Welfare: Diverting state exchequer funds toward political campaigns could starve critical sectors like healthcare, infrastructure, and education.
Incumbency Advantage: Designing a fair distribution matrix based on past electoral performance often ends up favoring established mainstream parties over newer, regional political outfits.

Global Best Practices: How Other Democracies Handle Election Funding

Different democratic models offer diverse mechanisms to balance transparency and financial equity:

Country	Funding Mechanism	Key Transparency / Regulatory Feature
Germany	Partial State Matching	The state matches funds raised by parties through membership fees and small private donations, encouraging grassroots citizen engagement.
France	Strict Reimbursement & Bans	Corporate donations are completely banned. The state reimburses up to 50% of campaign expenses for candidates who secure more than 5% of the total vote.
United Kingdom	Spending Caps & Short Money	Direct state funding is absent for campaigns, but opposition parties receive “Short Money” for parliamentary work. Strict statutory caps limit overall campaign spending.
United States	Private Dominance (Super PACs)	Public funding exists but is largely rejected by candidates due to restrictive spending limits. Politics is heavily driven by independent expenditures via Super PACs, leading to high opacity.

Way Forward

As recommended by the 2nd Administrative Reforms Commission (ARC), India should initially adopt partial state funding in-kind (such as free media time, shared public rally spaces, and subsidized transport) alongside a strict cap on overall party expenditures before transitioning to direct financial state funding.

Purifying the channels of political finance is essential to safeguard the constitutional mandate of free and fair elections under Article 324, reinforcing SDG 16 (Strong Institutions) and restoring absolute public trust in democratic governance.

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