Demonetisation effect: Fewer candidates fought 2017 UP poll

The demonetisation, which was announced on the night of November 8 by Prime Minister Narendra Modi, as a radical step against black money, unaccounted cash transactions and tax evasion, had sucked out almost 85 percent of liquidity from the market.

Under demonetisation, high value Indian currency notes bearing 1,000 and 500 denominations were scrapped and the government started printing and issuing new series of legal tenders bearing 2,000 and 500 denominations.

In this context, demonetisation had squeezed cash availability in economy in run up to the polls in 5 state viz. UP, Uttarakhand, Punjab, Goa and Manipur. It was widely expected that demonetisation could actually put a tab on the number of contestants this time round.

The Election Commission (EC) had fixed the ceiling of Rs 28 lakh as poll expenses on individual candidates for UP poll, up from the corresponding figure of Rs 16 lakh for the 2012 election, a hike of 75 percent.

Nonetheless, the actual poll spend by the candidates is pegged much steeper and estimated at 5-10 times by different political commentators and retired bureaucrats. The candidates spend towards volunteers and party workers, besides incurring for publicity, canvassing, vehicles, election office, snacks, tents etc.

However, the actual accounted expenditure could still be higher, since the political parties are allowed to incur separately in holding political rallies and public meetings in support of candidates. This expenditure head is distinct from that of the respective candidates.