Moving a Private Member's Bill to amend the Representation of People Act, 1951, M V Rajeev Gowda said the limit imposed has given rise to corruption and also claimed it was keeping good people away from the poll process.
"Something is fundamentally flawed with the election system. Why the system is favouring tainted over the 'sainted'. The expenditure limit is unrealistic and is perverse and counter-productive. It should be removed," he said introducing the bill.
He also proposed state funding of political parties in proportion to the amount raised openly from small private donors.
In this regard, he referred to the Indrajit Gupta committee which had in principle supported the idea of partial state funding, the Law Commission as well as the Second Administrative Reforms Commission which had mooted the idea of partial and conditional state funding.
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"Low limit force underground election expenditure and thus favour candidates with illegal money and the network to spent illegal money, thereby tilting the electoral field in favour of potentially criminal candidate who are better placed to win," he argued.
Gowda also said independent candidates with more than two per cent of the votes polled should be eligible for similar state support.
The discussion remained inconclusive as the House adjourned for the day.