Most political parties around the world have experienced an increase in the costs of running electoral campaigns. This leads to situations where unequal access to funds limits some political parties’ ability to campaign. Limits on election expenditure aim to put a lid on these increasing costs, thereby also levelling the playing field between different political parties.

Ceilings on election expenditure are often set by the legislature, the electoral management body (EMB), or other authority tasked with implementing political finance regulations. In the cases where the ceilings are set in law, they are often set not in absolute figures but in multiples of the minimum wage or with a provision for adjustment according to prevailing levels of inflation.