Commerce & Industry Minister Nirmala Sitharaman said the Election Commission of India (ECI) needs to look into the proposal for state funding of elections to combat the influence of cash and black money in them.

What is State Funding of Elections?
State funding of elections in aid means that the contesting candidates would be given certain basic aid from State such as free telephone connection, free internet connection, free publicity material, etc. to a limited extent. The private expenditure by candidates and receipt of donations from public for elections will not be allowed.

Significance of State Funding of Elections:
The State funding of elections will significantly reduce use of money in elections. This will reduce the influence of donators on political parties. Moreover, politicians will not require huge amount of money to contest elections and thus would not be pressurised to indulge in corruption.