¶12. (SBU) Indian law limits spending to 2.5 million rupees (approximately USD 50,000) per parliamentary candidates. Our interlocutors all scoffed at the limit, with one telling us it is a "joke." Jayaprakash Narayanan, founder of the reform-oriented Lok Satta party, told us that while his candidates will adhere to the limit, he expects his opponents to exceed it substantially. Narayanan said the other parties will spend 30 to 40 million rupees per candidate (USD 600,000 to 800,000). A leader from the MIM, Congress's last remaining ally in the state, said that most parties in the state exceed the 2.5 million rupee limit on polling day activities alone. ¶13. (SBU) The ruling Congress party's cash advantage over the state's other political parties is a generally asserted, but yet unproven fact. "Congress can buy this election," said a well-connected business leader. He added that "YSR has taken corruption to next level," which means Congress has far more money to spend than its rivals. The MIM leader admitted that Congress has used its time in power to amass "a huge cash advantage." ¶14. (SBU) Political analysts and academics at a lunch discussion about the elections agreed that bribes to voters are common in Andhra Pradesh, which could make the Congress party's financial advantage decisive. The editor of a major English language daily said that "the bribes paid to the voters in the last 48 hours" could decide it. A day before the second phase of polling, a local documentary film producer working with NGOs throughout the state noted that every party dramatically increased their financial outlays in the last 48 hours. His NGO contacts report that the major parties transferred funds directly into bank accounts of the widespread Women's Welfare Collectives (mostly begun during the last Naidu administration), who then distributed from 2000 - 4000 rupees (USD 50 - 100) to member families.
http://wikileaks.org/cable/2009/04/09HYDERABAD40.html
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