Big Budget Boost For Election Commission, 25% Hike Before Key Elections

Funding for the Election Commission increased by 25.33 per cent in the 2026 union budget presented by Finance Minister Nirmala Sitharaman Sunday morning. Budget allocation was increased from Rs 304.98 crore in 2025/26 to Rs 382.22 crore for 2026/27.

Of the total allocated to the poll panel for FY27, Rs 367.69 crore was earmarked for election-related expenditure, while the rest will be used for administrative and operational expenses.

Increased funding for the EC - under fire from the opposition over allegations of colluding with the ruling BJP - comes as the poll panel preps for state polls over the next two years, including in Tamil Nadu, Bengal, Assam, and Kerala this year, and in Uttar Pradesh and Punjab in 2027.

Meanwhile, the Law Ministry was allocated Rs 250 crore - against Rs 300 crore in budget estimates - for voter ID cards and Rs 500 crore for expenses from the 2024 Lok Sabha poll.

The Rs 500 crore, officials said, represent payments for expenses incurred by various agencies and state governments; one official called it a "book-keeping exercise".

Expenditure on voter ID cards, i.e., the Election Photo Identity Cards, or EPICs, is shared by the Centre and states, with each state paying in proportion to the number of registered electors.

The voter base of India stands at around 99 crore now but that number will drop, possibly substantially, over the next few years as the EC-ordered special intensive revision takes place.

The SIR exercise has been hugely controversial since it was carried out in Bihar last year; 47 lakh names were cut shortly before an election in which the ruling BJP-JDU eased to victory.

On their parts, the EC and BJP have rubbished any talk of collusion.

Finance Minister Nirmala Sitharaman presented her ninth budget today. In a 124-minute speech - after which the Sensex crashed by over 1,600 points before recovering slightly - she announced increased capex of Rs 12.2 lakh crore for FY27 and set a fiscal deficit target of 4.3 per cent of the GDP.

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There were no major announcements for income tax payers.

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However, among other big-ticket announcements were a nearly 22 per cent hike in defence spending, exempting basic customs duty on 17 essential cancer drugs, setting up a committee to review the impact of new technologies like AI, and a Rs 40,000 crore push for the semiconductor sector.