One of the most important aspects of managing elections lies in regulating the amount of money that candidates and parties may spend.  Unlike the United States, which limits the amounts which individuals and groups can contribute to election campaigns, the historical Canadian approach was to limit the amounts that candidates and parties can spend. However, Canadian federal election financing rules have changed considerably since 2004. New rules were brought in at the start of 2004 to limit any individual from contributing more than $5,000 in any calendar year to a party and its candidates. Corporations and trade unions are capped at $1,000 per calendar year. The limits on individual donations were subject to an inflation adjustment and stand at $5,200 for the current fiscal year ending March 31, 2006; corporate and union donations remained fixed at $1,000. Parliament passed new limits on political donations that came into effect on 2007. Corporations and trade unions now can no longer give money directly to political parties or candidates. Individuals are limited to donating no more than $1,100 to each of the political parties, ridings associations, and individual candidates; donations to individuals may be made at each stage of riding nomination, nomination, election campaigning, and party leadership nominations.

The specific limits on candidates' election expenses for the 2006 election varied from riding to riding because they were based on the number of electors in a constituency. For an historical perspective, you can compare the 2004 election limits with the limits for each riding in 2000. (pdf)

Each registered party is also given expense limits for spending by the central party machinery, based on the number of voters registered in the ridings they are running candidates in. Thus, the limit per riding varies with the size of the electorate. The preliminary limits for party spending in each riding have been set. You can also look up the 2004 spending limits that each registered political party is allowed to spend in each of the 308 ridings, which is in addition to the amounts spent by their candidates. The total amount a party can spend is based on the number of ridings they contest and the number of electors in those ridings.

The expense limits for the political parties in the 2006 elections are as follows:
 

The Canada Elections Act stipulates that subsidies shall be paid to registered political parties based on the number of votes they received in the previous federal election. Section 435.01 set a threshold of votes received that parties had to meet before qualifying for the quarterly allowances. Parties had to receive either 2% of the national vote or 5% of the votes in each of the ridings they had contested.  Elections Act in May 2000 placed a $3,000 limit on "third party" spending in each constituency and $150,000 for a national advertising campaign.

http://www.elections.ca/content.asp?section=med&document=jan0207&dir=pre&lang=e&textonly=false

Chief Electoral Officer Announces Election Financing Changes
Brought In by Federal Accountability Act

OTTAWA, Tuesday, January 2, 2007 — The Chief Electoral Officer of Canada, Jean-Pierre Kingsley, announced today that Elections Canada is prepared to implement election financing changes resulting from the passage of Bill C-2, the Federal Accountability Act. The Act received royal assent on December 12, 2006.

The new legislation reduces annual contribution limits to political entities. Furthermore, only individuals (Canadian citizens or permanent residents) may now make political donations. In addition, candidates are prohibited from accepting any gift or other advantage that might appear to have been given to influence them in the performance of their duties if elected to the House of Commons. Candidates must make a confidential report to the Chief Electoral Officer after each election on any gifts received.

Under the new legislation, the responsibility for appointing (and dismissing) returning officers now rests with the Chief Electoral Officer rather than the Governor in Council. In addition, the responsibility for prosecuting offences under the Canada Elections Act is transferred from the Commissioner of Canada Elections to the new Director of Public Prosecutions. Finally, the Access to Information Act is expanded to cover the Office of the Chief Electoral Officer.

Some provisions of the Federal Accountability Act came into force at royal assent and others on January 1, 2007, others will come into effect six months after royal assent, and still others will come into force on a date yet to be fixed by the Governor in Council.

Amendments to the Canada Elections Act that came into effect on January 1, 2007

• New, lower limits on the annual contributions individuals may make to registered parties, their candidates, nomination contestants and registered associations, and to leadership contestants and independent candidates

As of January 1, 2007, the new limits are:

• No more than $1,100 in any calendar year to each registered political party
• No more than $1,100 in any calendar year to the various entities of each registered political party (registered associations, nomination contestants and candidates)
• No more than $1,100 to the leadership contestant or the leadership contestants of their choice in a particular leadership contest
• No more than $1,100 to each independent candidate for a particular election

These limits are indexed on April 1 of each year.

• Only individuals who are Canadian citizens or permanent residents can give a contribution to registered parties, candidates, nomination contestants, registered associations and leadership contestants
• A ban on contributions by corporations, trade unions and unincorporated associations to registered parties, candidates, nomination contestants, registered associations and leadership contestants
• Prohibition on cash donations of more than $20