 bill no  xxxviii of 2012 the contesting election on government expenses bill, 2012 a billto provide for election expenses to the recognised political parties and their official candidates for contesting elections to lok sabha, legislative assembly and local bodies by the state in order to check increasing use of black money in such elections and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-third year of the republic of india as follows:—1 (1) this act may be called the contesting election on government expensesact, 2012short title and commencement(2) it shall come into force on such date as the central government may, by notification, in the official gazette, appoint5definitions2 in this act, unless the context otherwise requires,—(a) "appropriate government" means in the case of a state, the government of that state and in all other cases, the central government;10(b) "partial election expenses" means the expenses that may be fixed, from timeto time by parliament for providing to the official candidate and the recognise political parties for contesting elections to lok sabha, legislative assembly and local bodies(c) "prescribed" means prescribed by rules made under this act;(d) "recognised political party" means the political party that has been allotted election symbol by the election commission of india;43 of 19515(e) words and expressions used but not defined in this act and defined in the representation of the people act, 1951 shall have the meanings respectively assigned to them in that act 3 (1) the appropriate government shall provide partial election expenses to the recognised political parties and their official candidates in the country for contesting lok sabha, state legislative assembly and local body elections in such manner as may be prescribed10appropriate government to provide election expenses to recognised political parties and their official candidates15(2) notwithstanding anything contained in any other law for the time being in force, the recognised political parties and their official candidates shall be allowed to accept all kinds of donations and contributions from general public, entrepreneurs and corporate housesprovided that such donations, exceeding rupees ten thousand shall be accepted through cheque or draft and the names of the contributors shall have to be disclosed by the political parties on their websiteestablishment of electionfund204 (1) the central government shall, by notification in the official gazette, establish an election fund at national level to provide for partial election expenses to the recognised political parties and their official candidates(2) for the purpose of sub-section (1), parliament shall by due appropriation made by law in this behalf, provide initial capital of rupees five thousand crore to the corpus of election fund25(3) after the election fund so establish, funds shall be provided to the election fund by the central and state governments in such proportion as may be agreed to by them from time to time5 (1) the appropriate government shall provide the election expenses to  the recognised political parties if:—setting up of a reulatory mechanism(i) there exists internal democracy within the party; and (ii) the  internal set  up and the accounts of income and expenditure are  maintained in order30(2) the appropriate government shall set up a regulatory mechanism to look into the internal democracy, internal set up and accounts of income and expenditure of political parties in such manner as may be prescribed35(3) the regulatory mechanism so set up shall  function as a constituent of the election commission of indiapower to make rules40 456 (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of this act(2) every rule made by the central government, under this act shall be laid, as soon as may be after it is made, before each house of parliament; while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule statement of objects and reasonstoday, increasing use of black money in elections has become the biggest problem being faced by the indian democracy as per the estimate nearly rupees ten thousand crore was spent by the political parties and the official candidates in the lok sabha elections of 2009 this amount is more than the amount spent during the american presidential election held in 2008 a large amount of sum is used in the elections to the state legislatures and local bodies to check the usage of black money in the elections, concerns have been expressed from time to time several committees have also been constituted in this regard but their recommendations could not be implemented the election commission has taken effective steps to check the use of black money but these steps have not proved successful in curbing black money completely the proposal of providing the expenses for the election by the government to the political parties and the candidates can prove to the effective in checking the use of black money almost all the committees related to the electoral reforms have made this recommendationhence this billprabhat jha financial memorandumclause 3 provides the appropriate government to provide election expenses to recognised political parties and their official candidates clause 4 of the bill provides for the establishment of an election fund there is a provision of initial capital of rupees five thousand crore in the election fund this would involve an expenditure from the consolidated fund of india clause 5 of the bill provides for the establishment of a regulatory mechanism an annual recurring expenditure of rupees one hundred crore is likely to be incurred for the management of this mechanism the bill, if enacted, would involve a non-recurring expenditure of rupees fifty crore for the immediate constitution of the regulatory mechanism the recurring and non-recurring expenditure related to constitution and management of the regulatory mechanism will be net from the consolidated fund of india memorandum regarding delegated legislationclause 6 of the bill gives power to the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details onlythe delegation of legislative power is of normal characterrajya  sabha————— a billto provide for election expenses to the recognised political parties and their official candidates for contesting elections to lok sabha, legislative assembly and local bodies by the state in order to check increasing use of black money in such elections and for matters connected therewith or incidental thereto—————(shri prabhat jha, mp)gmgipmrnd—3933rs(s3)—07-12-2012