- JPC hears economists on macroeconomic impact of ONOE
- Gita Gopinath says fewer elections can lift private investment
- Estimates suggest up to ₹4.5 lakh crore GDP gain
- Sanjeev Sanyal highlights governance and policy continuity benefits
GG News Bureau
New Delhi, 18th Dec: The Joint Parliamentary Committee (JPC) examining the One Nation, One Election (ONOE) proposal on Tuesday heard senior economists outline the potential economic and governance benefits of conducting simultaneous elections across the country.
The meeting, chaired by BJP MP P.P. Chaudhary, was held in connection with the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, and the Union Territories Laws (Amendment) Bill, 2024.
According to sources, Gita Gopinath, Professor of Economics at Harvard University and former First Deputy Managing Director of the International Monetary Fund, told the committee that reducing the frequency of elections could have a positive impact on economic activity. She cited empirical evidence suggesting that private investment typically slows during election years by around five per cent, with only partial recovery thereafter. Fewer elections, she said, would reduce uncertainty and support stronger private investment.
Gopinath also pointed out that election years are often linked to higher primary deficits and lower capital expenditure, which affects the quality of government spending. Moving to simultaneous elections, she argued, could improve both the efficiency and composition of public expenditure.
Sources said she referred to estimates by former Finance Commission Chairman N.K. Singh, indicating that the combined impact of reduced uncertainty, better investment climate and improved public spending could raise GDP by about 1.5 per cent—equivalent to nearly ₹4.5 lakh crore in additional output.
Highlighting the high cost of elections in India, particularly political party expenditure, Gopinath described ONOE as a macroeconomic reform that could substantially reduce overall election-related spending.
The committee also heard from Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister, who cautioned that cost savings alone should not be the primary justification for ONOE. According to sources, Sanyal said staggered elections impose significant economic and governance costs due to repeated policy disruptions, frequent enforcement of the Model Code of Conduct and the diversion of political leadership towards continuous campaigning.
Sanyal argued that simultaneous elections would allow for more coherent discussion of Union and state issues, improve policy coordination and enhance stability in governance, strengthening long-term decision-making.
The Joint Parliamentary Committee is continuing consultations with experts and stakeholders as part of its ongoing examination of the proposed ONOE legislation.
