Under Philippine law, election campaigns are governed by specific limitations on campaign expenses to ensure fair and orderly elections. These regulations, which derive from both Political Law and Election Law, are rooted in the Constitution, statutory laws, and regulations issued by the Commission on Elections (COMELEC).

Legal Basis:

1987 Philippine Constitution – The Constitution provides the foundation for regulating campaign expenditures to prevent excessive spending and corruption, ensuring free, orderly, and fair elections.
Omnibus Election Code (Batas Pambansa Blg. 881) – This is the primary statute governing elections, including campaign expenditure limits.
Republic Act No. 7166 (Synchronized Election Law of 1991) – This law provides for the synchronized holding of national and local elections and prescribes further details on limitations on expenses.
COMELEC Rules and Resolutions – COMELEC issues resolutions to implement and enforce the laws on campaign expenditures, which candidates and political parties must adhere to.

Limitations on Campaign Expenses

The Omnibus Election Code and Republic Act No. 7166 set specific limits on how much candidates and political parties can spend during an election campaign. These limits depend on the candidate's position and the source of funding.

1. For Candidates

Presidential and Vice Presidential Candidates: A maximum of ₱10 per registered voter in the constituency where the candidate is running.
- Example: If there are 60 million registered voters, the maximum allowable expenditure would be ₱600 million.
Other Candidates (Senators, Congressmen, Local Officials, etc.):
- If the candidate has no political party and no support from any political party, the candidate may spend up to ₱5 per registered voter in the constituency.
- If the candidate is supported by a political party, the limit is ₱3 per registered voter in the constituency.

2. For Political Parties

Political parties are allowed to spend ₱5 per registered voter in the constituencies where they have official candidates. This amount is separate from the candidates' own spending limits.

3. For Independent Candidates

Independent candidates who do not receive any financial aid from a political party may spend up to ₱5 per registered voter in their respective constituency.

4. Limitations on Contributions

Campaign contributions are regulated to avoid undue influence by wealthy individuals, corporations, or special interest groups. The key rules are:

Prohibited Sources of Contributions:
- Foreign nationals and foreign corporations are prohibited from making any contributions in connection with elections.
- Government-owned and controlled corporations (GOCCs) and entities funded wholly or partly by the government are prohibited from contributing to campaign funds.
Donations by Corporations:
- Private corporations are allowed to donate, but contributions should be accounted for properly and must be reported to the COMELEC. Certain sectors, such as those involved in public utilities or those that have contracts with the government, are prohibited from contributing.

5. Common Oversights and Prohibited Acts

The following acts related to campaign finance are prohibited under election laws:

Overspending: Spending more than the allowed limits is considered an election offense punishable by disqualification from office, fines, and imprisonment.
Unreported Expenditures: All campaign expenses must be fully accounted for and reported to the COMELEC. Failure to submit campaign finance reports or underreporting expenses can result in penalties.
In-Kind Contributions: Non-monetary donations (such as use of venues, vehicles, etc.) are also considered part of the campaign expenditures and must be reported at their fair market value.
Third-Party Spending: Any entity or individual who incurs campaign expenses on behalf of a candidate or political party must also account for such expenses and these will be counted towards the candidate’s or party’s total allowed expenditure.

6. Period of Campaigning

Campaign expenditures are only allowed during the official campaign period set by COMELEC. Any spending before or after this period can be considered premature campaigning or overspending.

Premature Campaigning: This refers to any campaign activity conducted before the official campaign period. Under the Supreme Court's landmark ruling in Penera v. COMELEC, a person who has filed a certificate of candidacy but has not yet been officially declared a candidate cannot be penalized for premature campaigning, as they are technically not a candidate until the official campaign period begins.

7. Reporting and Auditing of Expenses

All candidates and political parties are required to submit a Statement of Contributions and Expenditures (SOCE) to the COMELEC within 30 days after the election. This report must include:

A detailed list of all donations and contributions received.
A breakdown of all expenses incurred during the campaign.
All receipts, contracts, and other documentary evidence to support the reported expenses.

COMELEC has the power to audit the SOCEs and impose penalties on candidates or parties who fail to comply with reporting requirements.

8. Sanctions and Penalties

Violations of the limits on campaign spending are considered election offenses under the Omnibus Election Code and can result in severe consequences:

Disqualification from Office: Candidates found guilty of overspending or other election finance violations may be disqualified from holding public office.
Fines and Imprisonment: Election offenses can be punished with imprisonment for one to six years, without probation. In addition, offenders may face monetary fines.
Loss of Voting Privileges: Persons convicted of election offenses may lose their right to vote.
Ban on Holding Public Office: Offenders can also be permanently disqualified from holding any public office.

Recent Developments and Trends

The COMELEC has been increasingly vigilant in monitoring campaign finance, with the assistance of civil society groups and media. Advances in technology have led to more sophisticated campaign methods, including the use of social media and digital advertising, which COMELEC has started regulating. Recently, there have been calls to reform election laws to account for the growing role of social media, as well as proposals to lower or raise the spending limits based on inflation and the rising costs of campaigns.

Conclusion

The limitations on campaign expenditures in Philippine election law serve as crucial measures to ensure a level playing field among candidates and prevent undue influence of money in elections. Candidates and political parties must adhere strictly to these limits to avoid legal repercussions. COMELEC plays a central role in enforcing these regulations, including the auditing of campaign expenses and the imposition of penalties for violations. Proper compliance not only upholds the integrity of the electoral process but also ensures fairness in the competition for public office.