Our discussions with members of the political eco-system in India reveal that each candidate who wishes to contest the General elections in India in 2014 has to provide his / her party a sum of around Rs20 crore on an average the operating cost incurred by a candidate in the process of campaigning. Furthermore, this initial investment is typically a function of the economic well-being of the constituency that the candidate is participating from, as this determines the rent-seeking potential for the potential Member of Parliament.
Assuming that on an average 3 candidates spend Rs 20 Crore from each of the Parties, then the total amount spent on 543 seats in India Rs20 crore x 3 candidates x 543 constituencies = a mind boggling Rs 32,000 Crore. Needless to say, this entire quantum of Rs 32,000 Crore cash is Black Moneyand moves seamlessly through India’s extensive hawala network while the Income Tax Department which squeezes the blood of Hardworking Indians by introducing laws such as Tax Deduction at Source on your salary is dancing to the tunes of Politicians.
The Rs 32,000 Crore is a Paltry sum compared to the massive Scams Corrupt Congress party has been involved in over the last 50 years of independence in India.