Election-related spending can contribute as much as 0.5 percent to the country's gross domestic product (GDP) next year, an official of the Finance Department said Monday.

In an interview with reporters, Finance Undersecretary Gil Beltran said money spent for campaigns, particularly cash gifts by political candidates, are expected to boost private consumption next year.

He added that media firms, publishing and printing companies, as well as public relations outfits usually thrive during the election season.

Still, Beltran said election-related spending and higher private consumption would not automatically translate to higher tax take for the government.

The Cabinet-level Development Budget Coordination Committee has projected a GDP growth range of 4.3 percent and 4.7 percent next year from between 3.1 percent and 4.1 percent this year.

However, former Socioeconomic Planning Secretary and economist Cayetano Paderanga said the country's GDP is likely to grow by only 3.9 percent in 2010.

The Philippines relies heavily on foreign and domestic borrowings to pay its maturing obligations and to finance its swelling budget deficit. For this year, the government is expecting a budget shortfall of P199.2 billion or 2.5 percent of GDP from its previous target of P177.2 billion or 2.2 percent of GDP.

For the first three months of 2009, however, the country already has a P119.7-billion budget deficit, already two-thirds of the government's revised full-year estimate.