The total cost of the second CA election scheduled for November 19 is estimated to come around Rs 40 billion, of which half of the expenses will have no record/source to trace.
The government – in the budget for the current fiscal year 2013-14 – has allocated Rs 16 billion for the second CA polls.
The EC has allowed a candidate under the FPTP system to spend up to Rs 1 million, while a PR candidate can spend Rs 75,000.
A total of over Rs 6 billion will be spent by the 6,128 FPTP candidates only, if the parties and candidates abide by the election code of conduct which is less likely due to cut-throat competition among the three major parties.
Nepali Congress that did not get chance to go the power after the first CA election in 2008 has provided Rs 500,000 to each of the 240 First Past The Post candidates making it a total of Rs 120 million.
But UCPN-Maoist and CPN-UML that were both in the government twice have no dearth of funds and of the 122 parties contesting the election, some of the parties have enough resources, though without source, that could pump some Rs 20 billion in the market due to rising election costs.
The excessive money supply in the market will push the inflation up to over two digit against the government and central bank's estimation of eight per cent.
The election expenses have shot up also due to adverse security situation, rising inflation, depreciation of Nepali rupee, pay hike for election officials, deployment of the Army, recruitment of the temporary police force and the cold weather conditions in the mountain districts during the pool month.
Though Rs 2.15 billion was spent for the security in 2008, the Finance Ministry has already allocated Rs 7 billion for the security, according to the ministry, and the Army has also demanded Rs 3 billion for its security arrangements.
In the last four years till 2013 May 28, after the first CA election in 2008, some Rs 91.26 billion was spent by the Constituent Assembly (CA) that failed to deliver the Constitution. Each CA member pocketed Rs 7.2 million in four years, which means the failed CA cost Rs 3,323 per Nepali.