Elections and Local Government Spending in Nepal: A Case Study of Pre-Election Expenditure Patterns

Elections are one of the mainstays of democracy, but they also carry a heavy financial burden. Nepal has emerged as a federal democratic republic with a regular cycle of elections at local, provincial and federal levels every five years. This case study examines patterns of expenditure in Nepal’s elections, particularly pre-election expenditure by government, political parties and candidates at the local level. The analysis, based on government reports, Election Commission data and academic studies, shows that elections in Nepal have become increasingly costly affairs. The overall expenditure in the 2017 election cycle has been calculated at Rs 131.63 billion in all three tiers while the local elections alone have seen Rs 69.42 billion outlay. The government had allocated Rs 8.11 billion to the Election Commission for the 2022 local elections, but candidates routinely spent far above the official expenditure limits with mayorship candidates spending an average of Rs 1.74 million against the Rs 750,000 cap. The study reveals three trends of inflation of pre-election expenditures, strategic distribution of development funds to buy voters, increase in campaign costs due to inflation and competitive electoral environment, and significant underreporting of candidate expenditures. The problem is weak enforcement of spending limits, the lack of transparency in political financing and the high cost of winning an election. The paper concludes that in the absence of meaningful campaign finance reform, stronger enforcement mechanisms and greater transparency, election costs in Nepal will continue to rise, siphoning public resources from development priorities and undermining the integrity of the democratic process.