Campaign Financing in a Democratic Election and Issues of Fairness: A Critical Analysis of Nepal’s HoR Election, 2026

Abstract

Election is considered a democratic exercise ensuring peaceful transfer of power, minimizing conflict in the concerned countries. Generally, a free, fair and periodic election results in political socialization and political participation. But, election financing remains a major part for a fair election as the political parties and candidates use resources to finance election campaigns. In the House of Representatives (HoR) elections conducted in Nepal in March 2026, candidates exceeded the limits of financial expenses that was set by the Election Commission. This paper examines the nature and practice of election campaign financing, drawing on expenditure data and existing legal frameworks. The findings of the paper reveal expenditures incurred for digital campaigning, namely social media boosting, which remained largely unregulated. Also, this paper offers a critical perspective for monitoring, with some new guidelines to combat challenges that appear along with the massive penetration of digital platforms. This could control unfair election financing and monitor election campaign spending, promoting an ethical campaign culture and internal reform in the political system. The study recommends strengthening the Election Commission's monitoring mechanisms, introducing real-time digital tracking, shortening the campaign period, and mandating independent financial audits. These reforms are essential to curb vote buying, promote ethical campaigning, and restore electoral integrity in Nepal's democracy.