Campaign financing is one of the most sensitive pillars of electoral law, as it directly influences the equality of opportunity among candidates and the transparency of the democratic process. Understanding how this financing works is essential to ensure fairer elections and avoid distortions caused by the misuse of resources.
In recent decades, the Brazilian system has undergone significant changes. The most important of these was the prohibition of donations by legal entities, imposed by the Supreme Federal Court (STF), and the creation of the Special Campaign Financing Fund (FEFC). As a result, the role of public financing and donations from individuals has gained prominence.
Constitutional and Legal Foundations of Campaign Financing
Campaign financing in Brazil is governed by a set of constitutional and legal norms aimed at guaranteeing fairness, transparency, and equal conditions in the electoral process. The 1988 Federal Constitution establishes the guiding principles of electoral activity, prohibiting practices that compromise popular sovereignty and the balance between candidates.
One of the constitutional pillars is found in Article 14 , which enshrines the principle of equality in electoral competition and prohibits the abuse of economic power. The intention is to prevent candidates with greater financial resources from unduly influencing the outcome of elections, to the detriment of democracy.
Another key point is Article 17, §1 , which prohibits political parties from receiving financial resources from foreign entities. This rule aims to protect national autonomy and prevent any type of international interference in internal political processes.
Ordinary Laws That Regulate
In addition to the constitutional text, several ordinary laws regulate campaign financing, most notably:
- A Election Law (Law No. 9.504/1997)which deals with the collection and application of resources in election campaigns, establishing rules on spending limits, permitted sources, and accountability.
- A Law on Political Parties (Law No. 9.096/1995), which governs the Party Fund and the accounting of public and private resources used by political parties.
- The resolutions of Superior Electoral Court (TSE), which update and supplement the rules for each election, detailing the practical requirements regarding fundraising, spending, transparency, and campaign auditing.
Case law also plays an essential role in building the legal framework. In 2015, the Supreme Federal Court , when judging Direct Action of Unconstitutionality No. 4.650, declared the donation of funds from companies to electoral campaigns unconstitutional. The understanding was that corporate economic power unbalances the competition, in addition to weakening republican principles and administrative morality.
Thus, the current Brazilian legal model seeks to reconcile the need for financing with the protection of electoral integrity, promoting greater control over the origin and application of resources used in campaigns.
Financing Modalities Campaign
Campaign financing in Brazil occurs through different methods, each with specific rules aimed at transparency and control over the use of resources. After the prohibition of donations from legal entities, consolidated by the Supreme Federal Court in 2015, the system began to be based exclusively on public and private sources from individuals, creating a mixed model with a predominance of state funding.
Special Campaign Financing Fund (FEFC)
Created in 2017, the FEFC is the main public source of electoral financing. Its resources come from the Union's budget and are distributed among the parties based on criteria involving representation in the Chamber of Deputies and the Federal Senate. The distribution is regulated by article 16-C of Law No. 9.504/1997 and by TSE resolutions for each election.
The use of FEFC (Special Fund for Financing Electoral Campaigns) requires detailed accountability from parties and candidates, and the funds must be used exclusively to cover campaign expenses, under penalty of electoral sanctions and repayment to the public treasury.
Party Fund
Although primarily intended for the maintenance of regular party activities, the Party Fund can also be used to finance campaigns, in accordance with Article 44 of Law No. 9.096/1995 . The resources come from electoral fines, budgetary allocations, and other public revenues, and are distributed by the TSE (Superior Electoral Court) based on criteria similar to those of the FEFC (Special Fund for Financing Electoral Campaigns).
Furthermore, the application is also subject to specific rules of transparency and accountability, with mandatory linkage of expenses to party and electoral objectives.
Donations from Individuals
Donations from individuals represent an important form of private financing in Brazilian campaigns. According to electoral law, individuals can donate up to 10% of their gross income declared in the year prior to the election, with donations exceeding this limit prohibited.
These donations can be made through bank transfer, credit card, bank slip, and, since 2017, through crowdfunding platforms authorized by the Electoral Court, known as electoral crowdfunding . Thus, this method expands civic engagement and encourages popular participation in the democratic process.
Self-financing
Candidates can also use their own resources to finance their campaigns. However, since the 2017 Electoral Mini-Reform , self-financing is limited to the spending ceiling established for the position being contested. This prevents the concentration of economic power around candidates with greater financial capacity.
Prior Collection
Another relevant innovation was the authorization for candidates to begin raising funds through crowdfunding before the official registration of their candidacy , provided that this is previously communicated to the Electoral Court. The release of funds, however, only occurs after the candidacy is approved, guaranteeing legal security and transparency in the process.
Transparency, Accountability, and Oversight of Election Financing
Transparency in the use of campaign resources is one of the pillars of modern electoral law. Therefore, to guarantee the integrity of the process, candidates and parties have a duty to account to the Electoral Court, reporting all campaign income and expenses.
The financial statements must be submitted through the electronic system provided by the TSE (Superior Electoral Court), detailing the donations received, the origin of the funds, expenses incurred, and supporting documentation.
In this way, oversight is carried out rigorously, with data cross-referencing by the Electoral Court and the use of technologies such as artificial intelligence. Irregularities can result in sanctions such as fines, suspension of transfers from the Party Fund, and even the revocation of a mandate.
Furthermore, the data is public and can be accessed by any citizen, which strengthens social control and increases confidence in the democratic process.
Trends and Future Perspectives for Election Financing
Legislative Proposals Under Discussion
In the legislative arena, proposals aimed at improving campaign financing are being debated, such as the specific criminalization of undeclared campaign contributions and increased penalties for corruption-related crimes. These initiatives seek to strengthen the integrity of the electoral process and ensure greater transparency in the collection and use of funds.
Crowdfunding and Use of Blockchain
Crowdfunding has gained prominence as a democratic alternative for raising funds, allowing citizens to contribute directly to campaigns. In other words, the use of blockchain technology in this context offers greater security and transparency, guaranteeing the traceability of donations and trust in the process.
Models and Paths for System Improvement
Building a fair and transparent electoral financing system requires constant evaluation and improvement of existing rules. In other words, experience accumulated over the years demonstrates that adopting clear rules, combined with effective control and accountability mechanisms, is fundamental to ensuring equity among candidates and public confidence in the electoral process.
Practices that promote greater transparency, such as the detailed disclosure of income and expenses, the use of technologies to track donations, and the strengthening of oversight, are proving to be viable paths for improving the current model. That is, by adapting good practices to its institutional context, Brazil can advance in the fight against abuses and ensure fairer and more democratic elections.
Final Words
The financing of electoral campaigns is one of the main instruments for guaranteeing legitimacy, transparency, and equal conditions in the democratic process. Therefore, recent transformations in the Brazilian legal system, such as the prohibition of donations by legal entities and the strengthening of public financing, reflect the pursuit of greater integrity and control in the use of campaign resources.
Nevertheless, challenges persist, such as combating undeclared campaign contributions, the need to increase transparency, and the constant adaptation to new technologies and forms of financing. Improving the system depends not only on legislative reforms, but also on institutional strengthening and the active participation of civil society in monitoring the electoral process.
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References
BRAZIL. Constitution of the Federative Republic of Brazil of 1988. Available at: https://www.planalto.gov.br/ccivil_03/constituicao/constituicao.htm.
BRAZIL. Superior Electoral Court. Learn about the rules on fundraising and use of resources by parties and candidates. Available at: https://www.tse.jus.br/comunicacao/noticias/2024/Abril/conheca-as-regras-sobre-arrecadacao-e-uso-de-recursos-por-partidos-e-candidatos.
BRAZIL. Federal Public Prosecutor's Office. Check the rules that parties and candidates must follow regarding fundraising and campaign spending. Available at: https://www.mpf.mp.br/ms/sala-de-imprensa/noticias-ms/confira-as-regras-que-partidos-e-candidatos-devem-seguir-na-arrecadacao-e-nos-gastos-com-campanha.
LUCHETE, Felipe. STF publishes ruling prohibiting campaign financing by companies. Consultor Jurídico , March 5, 2016. Available at: https://www.conjur.com.br/2016-mar-05/stf-publica-acordao-proibe-financiamento-eleitoral-empresas/.
NÓBREGA, Ana Karina Vasconcelos da. Some Reflections on Political and Electoral Financing in Light of Statistics. Revista de Direito Público, Brasília, v. 13, n. 75, p. 77-96, May/June 2017. Available at: https://www.portaldeperiodicos.idp.edu.br/direitopublico/article/view/2501.
