Increasing the Authorized Campaign Expenses of Candidates and Political Parties

TWENTIETH CONGRESS OF THE ) 25 JUL -9 P4:17 First Regular Session SENATE S. No.— Introduced by Senator MANUEL "LITO" M. LAPID AN ACT INCREASING THE AUTHORIZED CAMPAIGN EXPENSES OF CANDIDATES AND POLITICAL PARTIES, AMENDING FOR THE PURPOSE SECTION 13 OF REPUBLIC ACT NO. 7166, ENTITLED, "AN ACT PROVIDING FOR SYNCHRONIZED NATIONAL AND LOCAL ELECTIONS AND FOR OTHER ELECTORAL REFORMS, AUTHORIZING APPROPRIATIONS THEREFOR, AND FOR OTHER PURPOSES" EXPLANATORY NOTE This proposed legislation aims to address the need for an adjustment in allowable campaign expenses to reflect the effects of inflation on the costs associated with electoral campaigns, and to empower the Commission on Elections (COMELEC) to periodically update these limits in response to changing economic conditions. Republic Act No. 7166, otherwise known as the "Synchronized National and Local Elections and for Electoral Reforms Act of 1991," currently governs the allowable campaign expenses for candidates participating in Philippine elections. Under the existing law, allowable campaign expenses are set at levels that were appropriate when the law was enacted but have since become outdated due to the natural progression of inflation. The primary objective of this bill is to adjust the allowable campaign expenses in Republic Act No. 7166 to account for inflation. Over the years, the purchasing power of the Philippine peso has diminished, leading to an increase in the cost of various campaign-related activities, including advertising, transportation, and campaign

materials. By updating these allowable expenses, we aim to make the campaign budget more realistic and reflective of the prevailing prices of goods and services. Outdated allowable campaign expenses may inadvertently encourage candidates and political parties to underreport their actual campaign expenditures. This can undermine the transparency and accountability of the electoral process. By adjusting the allowable expenses to align with current economic realities, we intend to minimize, if not eliminate, the moral hazard to falsify campaign expenditure reports. In addition to adjusting the allowable campaign expenses in the short term, this bill also empowers COMELEC to regularly review and adjust these limits in response to inflation. By granting COMELEC the authority to make these adjustments, we ensure that campaign expenditure limits remain relevant and effective in promoting transparency and fairness in elections. This bill seeks to address the pressing need for an adjustment in allowable campaign expenses to account for inflation and to empower COMELEC to regularly update these limits based on economic conditions. This legislation will contribute to more transparent and accountable electoral processes, aligning campaign expenses with prevailing economic realities, and ultimately strengthening the democratic foundations of our nation. In view of the foregoing, early passage of this bill is sought. Senator

TWENTIETH CONGRESS OF THE ) 25 MUL -9 P4:18 First Regular Session SENATE M:. S. No. _ Introduced by Senator Manuel "Lito" M. Lapid AN ACT INCREASING THE AUTHORIZED CAMPAIGN EXPENSES OF CANDIDATES AND POLITICAL PARTIES, AMENDING FOR THE PURPOSE SECTION 13 OF REPUBLIC ACT NO. 7166, ENTITLED, "AN ACT PROVIDING FOR SYNCHRONIZED NATIONAL AND LOCAL ELECTIONS AND FOR OTHER ELECTORAL REFORMS, AUTHORIZING APPROPRIATIONS THEREFOR, AND FOR OTHER PURPOSES" Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 13 of Republic Act No. 7166 is hereby amended to read as

9 follows: "SEC. 13. Authorized Expenses of Candidates and Political Parties. - The aggregate amount that a candidate or registered political party may spend for election campaign shall be as follows: (a) For candidates - [Ten] FIFTY pesos [(P10.00)] (P50.00) for President and FORTY PESOS (P40.00) FOR Vice- President; and [for other candidates. Three pesos (P3.00]] THIRTY PESOS (P30.00) FOR SENATOR, DISTRICT REPRESENTATIVE, GOVERNOR, VICE-GOVERNOR, BOARD MEMBER, MAYOR, VICE-MAYOR, COUNCILOR, AND PARTY- LIST REPRESENTATIVE for every voter currently registered in the constituency where [he] THE CANDIDATE filed [his] THE

Certificate of candidacyl: 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 (b) For political parties - [Five] THIRTY pesos [[P5.00)] (P30.00) for every voter currently registered in the constituency or constituencies where it has official candidates. "Any provision of the 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] DONOR'S tax."

SEC. 2. A new Section 13-A shall be inserted after Section 13 of Republic Act

No. 7166 to read as follows:

SEC. 13-A. AUTHORITY TO ADJUST ALLOWABLE

EXPENSES. - THE COMMISSION ON ELECTIONS SHALL, IN CONSULTATION WITH THE BANGKO SENTRAL NG PILIPINAS, THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY, AND THE PHILIPPINE STATISTICS AUTHORITY, MAKE THE NECESSARY ADJUSTMENTS IN THE AMOUNT OF AUTHORIZED CAMPAIGN EXPENSES PER REGISTERED VOTER AS PROVIDED IN THE PREVIOUS SECTION OF THIS ACT BASED ON THE ENSUING NATIONAL INFLATION RATE AND CONSUMER PRICE INDEX.

SEC. 3. Implementing Rules and Regulations. - The Commission on Elections

26 shall, within ninety (90) days after the effectivity of this Act, promulgate such rules 27 and regulations necessary to implement this Act.

SEC. 4. Appropriations. - The amount necessary for the implementation of this

Act shall be included in the annual General Appropriations Act.

SEC. 5. Separability Clause. - If any part or provision of this Act is held invalid

or unconstitutional, the other provisions not affected shall remain in full force and effect.

SEC. 6. Repealing Clause. - All laws, executive orders, issuances, decrees, rules,

and regulations inconsistent with or contrary to the provisions of this Act are deemed amended, modified, or repealed accordingly.

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,