A ?150-billion election

Presidential elections are generally more expensive, but the last mid-term elections may have been the most expensive mid-term election in Philippine history in nominal and real terms. The last presidential election was just three years ago when inflation was in single digits, and the BBM-Duterte team had enormous local and foreign financial resources, so the 2022 election probably was more expensive.

The Commission on Election (Comelec) budget for the 2025 election was ?36 billion and together with the additional expenses for security/peace and order, the additional expenses for teachers/volunteers allowances shouldered by other offices, about ?38 billion were spent by Comelec and the Education and police support departments.

As of March 31, 2025, eight of the senatorial candidates: Villar, Marcos, Binay, Tolentino, De la Rosa, Abalos, Revilla, and Bong Go had spent a total of ?16 billion for advertising in radio, TV, and print, as officially reported by PCIJ. If we double this amount for their expenditures for April and May for the rest of their expenses, this would be ?32 billion. Then we add the estimated expenses of the 25 other viable senatorial candidates which averages ?80 million each, (Mendoza spent ?5 million while Pacquiao spent ?200 million), this would total ?2 billion, making senatorial candidates expenditures at ?34 billion.

Then we estimate the expenses of the local candidates for congressmen, governors, vice-governors, board members, mayors, vice-mayors and councilors in all the districts, provinces, cities, and towns. While theoretically smaller voter population areas would be less expensive for candidates, it turns out that expense per voter is inversely proportional to the number of voters. The lesser the number of voters the more expensive the votes in terms of propaganda and vote buying. So, we hear of voters getting from ?500 to ?10,000 in the last election. Based on the 60 million registered voters in 2025 and an actual voter turnout of 81%, some 48.6 million voted in the last election. At an average of ?1,500 all-in cost per voter for each of the 48.6 million voters, the combined expenses of the local candidates would be ?72.9 billion.

Adding up the ?38 billion Comelec expenses, the ?34 billion senatorial expenses, and the ?72.9 billion local candidates expenses would total ?144.9 billion. Then we add the value of the non-monetary contributions of time and efforts of volunteers and their unrecorded expenses, we can come up with a ?150-billion expenditure for the 2025 mid-term election.

The Philippine economy, (GDP) in 2024 was at ?28.34 trillion and is expected to be ?30 trillion in 2025 with a 6% growth rate. The ?150 billion election expenses is .6 of 1% of our GDP. As most of these election money goes to the middle and lower income sectors, and these expenditures are mostly converted to consumption expenses, this will pump over ?200 billion or 1% of GDP in consumption into the economy, as the “marginal propensity to spend” of these economic sectors are higher. The increase in the sales of Jollibee, MacDonalds, Mang Inasal, and other fast food stores was evident in the days before, during, and after the May 12 elections. In areas where the payouts were bigger, cellphones, appliances, and even motorcycle sales were observed to have increased. So, it is expected that the second quarter GDP growth rate will hit over 6%, as with the full year 2025.

Election expenses are necessary costs/expenditures in a democracy, but have to be controlled as there are more productive and longer-lasting investment expenditures. In a developing country like the Philippines, more investments in education, health, and needed infrastructures have longer impact and multiplier effects on the economy and the people. The Philippine economy is already 70% consumption expenditure driven and we really need more investments to reduce poverty level and improve income distribution.