Bihar Election 2025 Spending Rules: Candidates Face ₹40 Lakh Cap, Strict Scrutiny on Every Entry

As Bihar prepares for the high-stakes Assembly Election 2025, the Election Commission of India (ECI) has laid down strict spending rules that every candidate must follow. Contestants are allowed a maximum expenditure of ₹40 lakh during the election campaign, and exceeding this limit can lead to serious consequences, including disqualification.

The new guidelines not only restrict the use of cash but also bring every digital and banking transaction under the scanner. This means that candidates, their teams, and political parties must maintain detailed records of campaign spending. With Bihar politics traditionally associated with large-scale rallies, extensive travel, and heavy promotional costs, these rules are expected to redefine how campaigns are managed.

Spending Cap: ₹40 Lakh and Not a Rupee More

The Election Commission has fixed a ceiling of ₹40 lakh for each candidate contesting the Bihar Assembly elections. This includes:

• Public rallies and roadshows
• Banners, posters, and campaign material
• Social media advertisements
• Travel and accommodation expenses
• Payments to campaign staff and volunteers

Candidates who cross this threshold will be subject to inquiries and, in extreme cases, may face cancellation of candidature.

Cash Transactions Under Scanner

The ECI has made it clear that no large cash transactions will be allowed during the campaign. Every bank entry, cheque payment, or digital transfer will be monitored. Even minor discrepancies can attract penalties.

Flying squads and expenditure observers will be stationed across constituencies to check for unaccounted cash. Cash seizures during elections have been common in Bihar, but this time the rules are tighter, leaving little room for maneuvering.

Digital Trail and Banking Records

The Commission has instructed all banks to report suspicious transactions, especially large deposits and withdrawals by candidates or their close associates. Each rupee spent must be backed by bills and receipts, ensuring full transparency.

With digital payments on the rise, the ECI will also monitor online advertisements, sponsored posts on Facebook, Instagram, and YouTube, and payments made to agencies for campaign promotions.

Why These Rules Matter for Bihar

Bihar elections are known for their massive public mobilization, with candidates often investing heavily in rallies, caste-based outreach, and grassroots campaigning. By enforcing strict expenditure limits, the Election Commission aims to ensure a level playing field where candidates with smaller financial backing also get a fair chance.

Our earlier analysis on Bihar seat-sharing talks highlighted how money power influences negotiations.

In Bihar Election 2025 date coverage, we explained how the EC’s timeline will shape campaign strategies.

In our feature on Chirag Paswan’s political strategy, we noted how candidate financing often drives campaign intensity.

We also explored EC rules on voter rolls that show how strict monitoring is becoming central to the 2025 polls.

Candidates on Alert: What They Must Do

1. Open a separate bank account dedicated to election expenses.
2. Maintain daily expenditure records, verified by a chartered accountant.
3. Avoid anonymous donations or cash collections.
4. Report all digital ads with receipts to the Election Commission.
5. Submit final accounts of expenditure within the stipulated time post-election.

Failure to follow these steps can lead to disqualification or even legal proceedings.

Impact on Campaign Style

The ₹40 lakh cap is expected to change the way campaigns are conducted:

• Fewer extravagant rallies, more targeted local meetings.
• Increased use of social media, where costs are lower but reach is wider.
• Greater focus on volunteer-driven campaigns rather than paid manpower.

While major parties like BJP, JDU, and RJD have strong organizational backing, independent candidates and smaller outfits may benefit from the reduced role of money power.

Public Perception and Voter Trust

The Election Commission’s move is also about restoring voter confidence. In a state like Bihar, where allegations of money power and vote-buying are common, stricter expenditure rules send a strong message of transparency and fairness.

Political analysts believe this could shift the campaign narrative from financial muscle to ideological debates and issue-based politics.

Bigger Picture: Democracy and Accountability

Beyond Bihar, these measures set a precedent for Indian elections as a whole. With rising concerns over black money and unregulated spending, the strict ₹40 lakh limit may become a benchmark for other state elections in the future.

The rule also aligns with global practices where election monitoring bodies impose spending caps to ensure that democracy is not skewed in favor of the richest candidates.

Conclusion

The Bihar Assembly Election 2025 is not just a political battle—it is also a test of transparency, accountability, and the ability of candidates to adapt to stricter financial regulations. With a ₹40 lakh expenditure cap, every bank entry under scrutiny, and digital campaigns being monitored, the era of unchecked money power may finally be shifting.

As Bihar heads towards polling day, candidates will have to balance ambition with accountability, making this election a defining moment in India’s democratic journey.