2 min read
The legal limits
The Election Commission of India caps what a candidate may spend. For assembly elections the limit is ₹40 lakh in larger states and ₹28 lakh in smaller states; for Lok Sabha it is ₹95 lakh in larger states and lower in some smaller states and union territories. Municipal and panchayat elections are governed by each State Election Commission, which sets its own limits — check the notification for your election.
What counts towards the limit
Everything spent by the candidate or on the candidate's behalf: vehicles, rallies, printing, posters, digital advertising, bulk SMS and voice calls, campaign staff and materials. Expenses are recorded in a register that the expenditure observer can inspect, and the final account is filed after the result. Under-reporting is a legal risk, not a saving.
Where money changes votes
Spend that reaches the right voters, repeatedly, in the final weeks — booth-level workers, targeted voice and WhatsApp outreach, and polling-day mobilisation — usually does more than large one-off events. Spend that only makes the campaign look busy, such as untargeted posters across the whole seat, rarely shows up in the count.
A practical way to split a budget
As a starting framework rather than a rule: a small share (often 3–5%) on research and surveys at the start; the largest share on ground organisation and booth teams; a meaningful share on direct outreach — voice, SMS, WhatsApp and social; and a reserve held back for the final ten days and polling day. Adjust the mix to the seat: hill or rural seats need more logistics, urban seats more digital and apartment outreach.
At a glance
Campaign expense planning template
| Category | Planned cost | Actual cost |
|---|---|---|
| Research & staffing | To scope | To record |
| Content & production | To scope | To record |
| Communication & media | To scope | To record |
| Field logistics | To scope | To record |
| Approvals & records | To confirm | To record |
Spend early on the things that save money later
A diagnostic survey tells you which booths are worth fighting for, so you stop spending in places that will not move. That is usually the single best-value item in the whole budget, and the one most often skipped.
Bottom line
Budget from the legal limit down and from the swing booths out. A smaller campaign aimed at the right voters beats a bigger one spread evenly.