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Report No. 255

Chapter II

Election Finance Reform

2.1. Electoral reforms often contain proposals for reforming election funding, and candidate and party expenditure. This Chapter discusses the issue under three broad sub-groups: limits on political contributions and party and candidate expenditure; disclosure norms and requirements; and State funding of elections. These issues are governed by the provisions of the RPA, the Conduct of Election Rules, 1961 (hereinafter "Election Rules"), the Companies Act, 2013, and the Income Tax Act, 1961 (hereinafter "IT Act").

2.2. Part A of this Section provides a brief summary snapshot of the relevant laws governing each of the three aspects, while Part B discusses the need for election finance reform. Parts C analyses the laws regulating election expenditure, contributions, and disclosure and Part D provides the comparative perspective. Part E then describes the legal lacunae causing the under-reporting of election spending while Part F examines the case for State funding of elections. Part G concludes with a summary of recommendations.

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