According to the Association for Democratic Reforms (ADR) report, many parties delayed submitting expenditure statements (by 1 to 232 days), failed to report altogether after General Elections 2024. 

• Political parties are required to submit election expenditure statements to the ECI within 90 days (General elections) and 75 days (Assembly elections) post-election.
• Widespread non-compliance has raised serious concerns about transparency and accountability in political financing.

Issue in Political Financing in India

• Expensive Elections: The 2024 Lok Sabha Election became the most expensive electoral event in the world, with expenditure reaching ₹1.35 lakh crore.
• Lack of Transparency: Approximately 60% of contributions to the six major political parties in India from 2004-05 to 2022-23 came from undisclosed sources.
• Disparity in Political Funding: E.g., National parties collected over 93% of total funds, in 2024 general elections raising concerns over unequal financial influence & a level playing field.
• Electoral Overspending: Despite ECI’s expenditure limits (₹95 lakh for Lok Sabha, ₹40 lakh for Assembly), actual spending exceeds these caps, often with the help of third-party campaigners & loopholes in the Model Code of Conduct.
• Wealth a key factor in electoral success, limiting opportunities for less affluent contenders.
  • E.g. In Madhya Pradesh, 44% of winning candidates declared assets over ₹5 crore.