Regulatory Measure: Expenditure Limit

The regulation of campaign finance by imposing a maximum limit on campaign expenditures is not a new measure. It has been in place since the Batasang Pambansa or the National Assembly enacted Batas Pambansa Bilang 881 ³ in 1985, antedating even the 1987 Constitution. Sections 100 and 101 of the Omnibus Election Code ("OEC") state:

"Sec. 100. Limitations upon expenses of candidates. - No candidate shall spend for his election campaign an aggregate amount exceeding one peso and fifty centavos (PhP 1.50) for every voter currently registered in the constituency where he filed his candidacy: Provided, That the expenses herein referred to shall include those incurred or caused to be incurred by the candidate, whether in cash or in kind, including the use, rental or hire of land, water or aircraft, equipment, facilities, apparatus and paraphernalia used in the campaign: Provided, further, That where the land, water or aircraft, equipment, facilities, apparatus and paraphernalia used is owned by the candidate, his contributor or supporter, the Commission is hereby empowered to assess the amount commensurate with the expenses for the use thereof, based on the prevailing rates in the locality and shall be included in the total expenses incurred by the candidate.

Sec. 101. Limitations upon expenses of political parties. - A duly accredited political party may spend for the election of its candidates in the constituency or constituencies where it has official candidates an aggregate amount not exceeding the equivalent of one peso and fifty centavos (PhP 1.50) for every voter currently registered therein. Expenses incurred by branches, chapters, or committees of such political party shall be included in the computation of the total expenditures of the political party.

Expenses incurred by other political parties shall be considered as expenses of their respective individual candidates and subject to limitation under Section 100 of this Code."

Although the allowable amount of PhP 1.50 per registered voter in the original OEC provision has already been amended by Section 13 of Republic Act No. 7166 ("RA 7166"), enacted in 1991. Section 13 of RA 7166 reads:

"Sec. 13. Authorized Expenses of Candidates and Political Parties. - The agreement amount that a candidate or registered political party may spend for election campaign shall be as follows:

For candidates. - Ten pesos (P10.00) for President and Vice-President; and for other candidates Three Pesos (P3.00) for every voter currently registered in the constituency where he filed his certificate of candidacy: Provided, That a candidate without any political party and without support from any political party may be allowed to spend Five Pesos (P5.00) for every such voter; and
For political parties. - Five pesos (P5.00) for every voter currently registered in the constituency or constituencies where it has official candidates.

Any provision of law to the contrary notwithstanding any contribution in cash or in kind to any candidate or political party or coalition of parties for campaign purposes, duly reported to the Commission shall not be subject to the payment of any gift tax."

³ Also known as the Omnibus Election Code.

Source: Campaign Finance Office (CFO)