Expenses up to Rs 20,000 can be made in cash: EC

The EC has considered this amount to be “minor expenses” and issued a notification to all registered political parties and Chief Election Officers of the states to avoid any confusion when it comes to dealing with “petty expenses”.

“Some political parties have asked for clarification, specifying the limits of minor cash expenditure. If the amount payable by candidate to any person or entity for any item of expenditure does not exceed Rs 20,000 during the entire process of election, then such expenditure can be incurred by cash by withdrawing it from the bank account opened for the purpose of election. All other payments are to be made by account payee cheque from the said  bank account,” the notification said.

The EC also said that if flags, caps, mufflers bore the name of the candidate, then the expenses would be added to the candidates’ accounts and in case such items bore the name of the political party then expenses would be borne by it.

The EC had earlier mandated opening of separate accounts and maintenance of shadow registers for all candidates to keep a check  on illegal expenditure in the electoral process.