GENERAL ELECTIONS SPENDING COULD PROVIDE STIMULUS TO ECONOMY

The General Election related expenditure could impart a much-needed spending stimulus of about Rs 15,000-16,000 crore to the economy.

The 2009-10 Budget has allocated Rs 9,700 crore for it. To this must be added the spending per constituency by parties and candidates. If there are two serious candidates, the average spending could be as high as Rs 5 crore to Rs 12 crore per constituency per candidate, say political parties. Each candidate is allowed to spend only Rs 35 lakh but there is no limit on how much his or her friends, and the party, can spend.

The Hindu Business Line