Araullo v. Aquino.docx

8/20/2019 Araullo v. Aquino.docx

1/70

Republic of the PhilippinesSUPREME COURT

Manila

EN BANC

G.R. No. 209287 July 1, 2014

MARIA CAROLINA P. ARAULLO, CHAIRPERSON, BAGONG ALANSANGMA!ABAAN" JU# M. TAGUI$ALO, PRO%ESSOR, UNI&ERSIT O% THEPHILIPPINES #ILIMAN, CO'CHAIRPERSON, PAGBABAGO" HENRI !AHN,CONCERNE# CITI(ENS MO&EMENT" REP. LU( ILAGAN, GABRIELA $OMEN)S PARTREPRESENTATI&E" REP. CARLOS ISAGANI (ARATE, BA AN MUNA PART'LISTREPRESENTATI&E" RENATO M. REES, JR., SECRETAR GENERAL O% BAAN"MANUEL !. #ARIT, CHAIRMAN, ANG !APATIRAN PART" &ENCER MARI E.CRISOSTOMO, CHAIRPERSON, ANA!BAAN" &ICTOR &ILLANUE&A, CON&ENOR,

OUTH ACT NO$, Petitioners,

vs.BENIGNO SIMEON C. A*UINO III, PRESI#ENT O% THE REPUBLIC O% THEPHILIPPINES" PA*UITO N. OCHOA, JR., E+ECUTI&E SECRETAR" AN# %LORENCIOB. ABA#, SECRETAR O% THE #EPARTMENT O% BU#GET AN#MANAGEMENT, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 2091-

AUGUSTO L. S JUCO JR., P.#., Petitioner,vs.

%LORENCIO B. ABA#, IN HIS CAPACIT AS THE SECRETAR O% #EPARTMENT O%BU#GET AN# MANAGEMENT" AN# HON. %RAN!LIN MAGTUNAO #RILON, IN HIS CAPA CIT AS THE SENATE PRESI#ENT O% THE PHILIPPINES, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 2091/

MANUELITO R. LUNA, Petitioner,vs.SECRETAR %LORENCIO ABA#, IN HIS O%%ICIAL CAPACIT AS HEA# O% THE#EPARTMENT O% BU#GET AN# MANAGEMENT" AN# E+ECUTI&E SECRETAR

PA*UITO OCHOA, IN HIS O%%ICIAL CAPACIT AS ALTER EGO O% THEPRESI#ENT, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 2091--

ATT. JOSE MAL& AR &ILLEGAS, JR., Petitioner,vs.


2/70

THE HONORABLE E+ECUTI&E SECRETAR PA*UITO N. OCHOA, JR." AN# THESECRETAR O% BU#GET AN# MANAGEMENT %LORENCIO B. ABA#, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 2091/4

PHILIPPINE CONSTITUTION ASSOCIATION PHILCONSA, REPRESENTE# B #EAN%ROILAN M. BACUNGAN, BENJAMIN E. #IO!NO AN# LEONOR M.BRIONES, Petitioners,vs.#EPARTMENT O% BU#GET AN# MANAGEMENT AN#OR HON. %LORENCIO B.ABA#, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 2092/0

INTEGRATE# BAR O% THE PHILIPPINES IBP, Petitioner,vs.SECRETAR %LORENCIO B. ABA# O% THE #EPARTMENT O% BU#GET AN#MANAGEMENT #BM,Respondent.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 209442

GRECO ANTONIOUS BE#A B. BELGICA" BISHOP REUBEN MABANTE AN# RE&. JOSEL. GON(ALE(,Petitioners,vs.

PRESI#ENT BENIGNO SIMEON C. A*UINO III, THE SENATE O% THE PHILIPPINES,REPRESENTE# B SENATE PRESI#ENT %RAN!LIN M. #RILON" THE HOUSE O%REPRESENTATI&ES, REPRESENTE# B SPEA!ER %ELICIANO BELMONTE, JR." THEE+ECUTI&E O%%ICE, REPRESENTE# B E+ECUTI&E SECRETAR PA*UITO N.OCHOA, JR." THE #EPARTMENT O% BU#GET AN# MANAGEMENT, REPRESENTE#B SECRETAR %LORENCIO ABA#" THE #EPARTMENT O% %INANCE,REPRESENTE# B SECRETAR CESAR &. PURISIMA" AN# THE BUREAU O%TREASUR, REPRESENTE# B ROSALIA &. #E LEON, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 209-17

CON%E#ERATION %OR UNIT, RECOGNITION AN# A#& AN CEMENT O%GO&ERNMENT EMPLOEES COURAGE, REPRESENTE# B ITS 1ST &ICEPRESI#ENT, SANTIAGO #ASMARINAS, JR." ROSALIN#A NARTATES, %OR HERSEL%AN# AS NATIONAL PRESI#ENT O% THE CONSOLI#ATE# UNION O% EMPLOEESNATIONAL HOUSING AUTHORIT CUENHA" MANUEL BACLAGON, %OR HIMSEL%AN# AS PRESI#ENT O% THE SOCIAL $EL%ARE EMPLOEES ASSOCIATION O% THEPHILIPPINES, #EPARTMENT O% SOCIAL $EL%ARE AN# #E&ELOPMENT CENTRALO%%ICE S$EAP'#S$# CO" ANTONIA PASCUAL, %OR HERSEL% AN# AS NATIONAL


3/70

PRESI#ENT O% THE #EPARTMENT O% AGRARIAN RE%ORM EMPLOEESASSOCIATION #AREA" ALBERT MAGALANG, %OR HIMSEL% AN# AS PRESI#ENTO% THE EN&IRONMENT AN# MANAGEMENT BUREAU EMPLOEES UNION EMBEU"AN# MARCIAL ARABA, %OR HIMSEL% AN# AS PRESI#ENT O% THE !APISANANPARA SA !AGALINGAN NG MGA !A$ ANI NG MM#A !!!MM#A, Petitioners,vs.

BENIGNO SIMEON C. A*UINO Ill, PRESI#ENT O% THE REPUBLIC O% THEPHILIPPINES" PA*UITO OCHOA, JR., E+ECUTI&E SECRETAR" AN# HON.%LORENCIO B. ABA#, SECRETAR O% THE #EPARTMENT O% BU#GET AN#MANAGEMENT, Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - x

G.R. No. 209-/9

&OLUNTEERS AGAINST CRIME AN# CORRUPTION &ACC, REPRESENTE# B#ANTE L. JIMENE(,Petitioner,vs.

PA*UITO N. OCHOA, E+ECUTI&E SECRETAR, AN# %LORENCIO B. ABA#,SECRETAR O% THE #EPARTMENT O% BU#GET AN# MANAGEMENT, Respondents.

D E C ! " N

BERSAMIN, J.:

#or resolution are the consolidated petitions assailin$ the constitutionalit% of theDisburse&ent Acceleration Pro$ra&'DAP(, National Bud$et Circular 'NBC( No. )*+, andrelated issuances of the Depart&ent of Bud$et and Mana$e&ent 'DBM( i&ple&entin$ theDAP.

At the core of the controvers% is !ection '+( of Article of the +/0 Constitution, aprovision of the funda&ental la1 that fir&l% ordains that 23n4o &one% shall be paid out of the5reasur% except in pursuance of an appropriation &ade b% la1.2 5he tenor and context of thechallen$es posed b% the petitioners a$ainst the DAP indicate that the DAP contravened thisprovision b% allo1in$ the Executive to allocate public &one% pooled fro& pro$ra&&ed andunpro$ra&&ed funds of its various a$encies in the $uise of the President exercisin$ hisconstitutional authorit% under !ection )')( of the +/0 Constitution to transfer funds out ofsavin$s to au$&ent the appropriations of offices 1ithin the Executive Branch of the6overn&ent. But the challen$es are further co&plicated b% the inter7ection of alle$ations oftransfer of funds to a$encies or offices outside of the Executive.

Antecedents

8hat has precipitated the controvers%9

"n !epte&ber ), :+;, !en.


4/70

Respondin$ to !en. Estrada=s revelation, !ecretar% #lorencio Abad of the DBM issued apublic state&ent entitled Abad> Releases to !enators Part of !pendin$ AccelerationPro$ra&,+ explainin$ that the funds released to the !enators had been part of the DAP, apro$ra& desi$ned b% the DBM to ra&p up spendin$ to accelerate econo&ic expansion. ?eclarified that the funds had been released to the !enators based on their letters of re@uestfor fundin$ and that it 1as not the first ti&e that releases fro& the DAP had been &ade

because the DAP had alread% been instituted in :++ to ra&p up spendin$ after slu$$ishdisburse&ents had caused the $ro1th of the $ross do&estic product '6DP( to slo1 do1n.?e explained that the funds under the DAP 1ere usuall% taen fro& '+( unreleasedappropriations under Personnel !ervices '( unpro$ra&&ed funds ';( carr%-overappropriations unreleased fro& the previous %ear and '*( bud$ets for slo1-&ovin$ ite&s orpro7ects that had been reali$ned to support faster-disbursin$ pro7ects.

5he DBM soon ca&e out to clai& in its 1ebsite; that the DAP releases had been sourcedfro& savin$s $enerated b% the 6overn&ent, and fro& unpro$ra&&ed funds and that thesavin$s had been derived fro& '+( the poolin$ of unreleased appropriations, lie unreleasedPersonnel !ervices* appropriations that 1ould lapse at the end of the %ear, unreleasedappropriations of slo1-&ovin$ pro7ects and discontinued pro7ects per ero based bud$etin$findin$s) and '( the 1ithdra1al of unobli$ated allot&ents also for slo1-&ovin$ pro$ra&sand pro7ects that had been earlier released to the a$encies of the National 6overn&ent.

5he DBM listed the follo1in$ as the le$al bases for the DAP=s use of savin$s, na&el%> '+(!ection )')(, Article of the +/0 Constitution, 1hich $ranted to the President the authorit%to au$&ent an ite& for his office in the $eneral appropriations la1 '( !ection * 'Authorit%to se !avin$s for Certain Purposes( and !ection ;/ '!uspension of Expenditure

Appropriations(, Chapter ), Boo of Executive "rder 'E"( No. 'Ad&inistrative Codeof +/0( and ';( the 6eneral Appropriations Acts '6AAs( of :++, :+ and :+;,particularl% their provisions on the 'a( use of savin$s 'b( &eanin$s of savin$s andau$&entation and 'c( priorit% in the use of savin$s.

As for the use of unpro$ra&&ed funds under the DAP, the DBM cited as le$al bases the

special provisions on unpro$ra&&ed fund contained in the 6AAs of :++, :+ and :+;.

5he revelation of !en. Estrada and the reactions of !ec. Abad and the DBM brou$ht theDAP to the consciousness of the Nation for the first ti&e, and &ade this present controvers%inevitable. 5hat the issues a$ainst the DAP ca&e at a ti&e 1hen the Nation 1as stillseethin$ in an$er over Con$ressional por barrel F 2an appropriation of $overn&entspendin$ &eant for localied pro7ects and secured solel% or pri&aril% to brin$ &one% to arepresentative=s district20 F excited the Nation as heatedl% as the por barrel controvers%.

Nine petitions assailin$ the constitutionalit% of the DAP and the issuances relatin$ to the DAP1ere filed 1ithin da%s of each other, as follo1s> 6.R. No. :+;) '!%7uco(, on "ctober 0,:+; 6.R. No. :+; 'Guna(, on "ctober 0, :+; 6.R. No. :+)) 'ille$as(,/ on "ctober

+, :+; 6.R. No. :+* 'P?GC"N!A(, on "ctober /, :+; 6.R. No. :: 'BP(, on"ctober +, :+; 6.R. No. :/0 'Araullo(, on "ctober +0, :+; 6.R. No. :**'Bel$ica(, on "ctober , :+; 6.R. No. :)+0 'C"RA6E(, on Nove&ber, :+; and6.R. No. :) 'ACC(, on Nove&ber /, :+;.

n 6.R. No. :/0 'Araullo(, the petitioners brou$ht to the Court=s attention NBC No. )*+'Adoption of "perational Efficienc% Measure F 8ithdra1al of A$encies= nobli$ated

Allot&ents as of


5/70

$overn&ent a$encies and offices 1ith lo1 levels of obli$ations, both for continuin$ andcurrent allot&ents.

n due ti&e, the respondents filed their Consolidated Co&&ent throu$h the "ffice of the!olicitor 6eneral '"!6(.

5he Court directed the holdin$ of oral ar$u&ents on the si$nificant issues raised and 7oined.

ssues

nder the Advisor% issued on Nove&ber +*, :+;, the presentations of the parties durin$ theoral ar$u&ents 1ere li&ited to the follo1in$, to 1it>

Procedural ssue>

A. 8hether or not certiorari, prohibition, and &anda&us are proper re&edies to assail theconstitutionalit% and validit% of the Disburse&ent Acceleration Pro$ra& 'DAP(, NationalBud$et Circular 'NBC( No. )*+, and all other executive issuances alle$edl% i&ple&entin$ the

DAP. !ubsu&ed in this issue are 1hether there is a controvers% ripe for 7udicialdeter&ination, and the standin$ of petitioners.

!ubstantive ssues>

B. 8hether or not the DAP violates !ec. , Art. of the +/0 Constitution, 1hich provides>2No &one% shall be paid out of the 5reasur% except in pursuance of an appropriation &adeb% la1.2

C. 8hether or not the DAP, NBC No. )*+, and all other executive issuances alle$edl%i&ple&entin$ the DAP violate !ec. )')(, Art. of the +/0 Constitution insofar as>

'a(5he% treat the unreleased appropriations and unobli$ated allot&ents1ithdra1n fro& $overn&ent a$encies as 2savin$s2 as the ter& is used in!ec. )')(, in relation to the provisions of the 6AAs of :++, :+ and :+;

'b(5he% authorie the disburse&ent of funds for pro7ects or pro$ra&s notprovided in the 6AAs for the Executive Depart&ent and

'c(5he% 2au$&ent2 discretionar% lu&p su& appropriations in the 6AAs.

D. 8hether or not the DAP violates> '+( the E@ual Protection Clause, '( the s%ste& ofchecs and balances, and ';( the principle of public accountabilit% enshrined in the +/0Constitution considerin$ that it authories the release of funds upon the re@uest of

le$islators.

E. 8hether or not factual and le$al 7ustification exists to issue a te&porar% restrainin$ orderto restrain the i&ple&entation of the DAP, NBC No. )*+, and all other executive issuancesalle$edl% i&ple&entin$ the DAP.

n its Consolidated Co&&ent, the "!6 raised the &atter of unpro$ra&&ed funds in order tosupport its ar$u&ent re$ardin$ the President=s po1er to spend. Durin$ the oral ar$u&ents,the propriet% of releasin$ unpro$ra&&ed funds to support pro7ects under the DAP 1as


6/70

considerabl% discussed. 5he petitioners in 6.R. No. :/0 'Araullo( and 6.R. No. :**'Bel$ica( d1elled on unpro$ra&&ed funds in their respective &e&oranda. ?ence, anadditional issue for the oral ar$u&ents is stated as follo1s>

#. 8hether or not the release of unpro$ra&&ed funds under the DAP 1as in accord 1ith the6AAs.

Durin$ the oral ar$u&ents held on Nove&ber +, :+;, the Court directed !ec. Abad tosub&it a list of savin$s brou$ht under the DAP that had been sourced fro& 'a( co&pletedpro$ra&s 'b( discontinued or abandoned pro$ra&s 'c( unpaid appropriations forco&pensation 'd( a certified cop% of the President=s directive dated

a. NBC No. )/ dated


7/70

directives of the Court or its Me&bers, sub&itted several evidence pacets to aid the Courtin understandin$ the factual bases of the DAP, to 1it>

'+( #irst Evidence Pacet++ F containin$ seven &e&oranda issued b% the DBMthrou$h !ec. Abad, inclusive of annexes, listin$ in detail the ++ DAP identifiedpro7ects approved and dul% si$ned b% the President, as follo1s>

a. Me&orandu& for the President dated "ctober +, :++ '#I :++Proposed Disburse&ent Acceleration Pro$ra& 'Pro7ects and !ources of#unds(

b. Me&orandu& for the President dated Dece&ber +, :++ '"&nibus Authorit% to Consolidate !avin$sHnutilied Balances and its Reali$n&ent(

c. Me&orandu& for the President dated


8/70

"n #ebruar% +*, :+*, the "!6 sub&itted another set of docu&ents in further co&pliance1ith the Resolution dated

'+( Certified copies of the certifications issued b% the Bureau of 5reasur% to the effect that therevenue collections exceeded the ori$inal revenue tar$ets for the %ears :++, :+ and:+;, includin$ collections arisin$ fro& sources not considered in the ori$inal revenue

tar$ets, 1hich certifications 1ere re@uired for the release of the unpro$ra&&ed funds asprovided in !pecial Provision No. + of Article KG, Article K, and Article KG of the :++,:+ and :+; 6AAs and '( A report on releases of savin$s of the Executive Depart&entfor the use of the Constitutional Co&&issions and other branches of the 6overn&ent, as1ell as the fund releases to the !enate and the Co&&ission on Elections 'C"MEGEC(.

RGN6

.

Procedural ssue>

a( 5he petitions under Rule ) are proper re&edies

All the petitions are filed under Rule ) of the Rules of Court, and include applications for theissuance of 1rits of preli&inar% prohibitor% in7unction or te&porar% restrainin$ orders. Morespecificall%, the nature of the petitions is individuall% set forth hereunder, to 1it>

6.R. No. :+;) '!%7uco( Certiorari, Prohibition and Manda&us

6.R. No. :+; 'Guna( Certiorariand Prohibition

6.R. No. :+)) 'ille$as( Certiorariand Prohibition

6.R. No. :+* 'P?GC"N!A( Certiorariand Prohibition

6.R. No. :: 'BP( Prohibition

6.R. No. :/0 'Araullo( Certiorariand Prohibition

6.R. No. :** 'Bel$ica( Certiorari

6.R. No. :)+0 'C"RA6E( Certiorari and Prohibition

6.R. No. :) 'ACC( Certiorari and Prohibition

5he respondents sub&it that there is no actual controvers% that is ripe for ad7udication in the

absence of adverse clai&s bet1een the parties+

that the petitioners laced le$al standin$ tosue because no alle$ations 1ere &ade to the effect that the% had suffered an% in7ur% as aresult of the adoption of the DAP and issuance of NBC No. )*+ that their bein$ taxpa%ersdid not i&&ediatel% confer upon the petitioners the le$al standin$ to sue considerin$ that theadoption and i&ple&entation of the DAP and the issuance of NBC No. )*+ 1ere not in theexercise of the taxin$ or spendin$ po1er of Con$ress: and that even if the petitioners hadsuffered in7ur%, there 1ere plain, speed% and ade@uate re&edies in the ordinar% course ofla1 available to the&, lie assailin$ the re$ularit% of the DAP and related issuances beforethe Co&&ission on Audit 'C"A( or in the trial courts. +

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt19http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt19http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt20http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt21http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt19http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt20http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt21


9/70

5he respondents aver that the special civil actions of certiorari and prohibition are not properactions for directl% assailin$ the constitutionalit% and validit% of the DAP, NBC No. )*+, andthe other executive issuances i&ple&entin$ the DAP.

n their &e&orandu&, the respondents further contend that there is no authoriedproceedin$ under the Constitution and the Rules of Court for @uestionin$ the validit% of an%

la1 unless there is an actual case or controvers% the resolution of 1hich re@uires thedeter&ination of the constitutional @uestion that the 7urisdiction of the Court is lar$el%appellate that for a court of la1 to pass upon the constitutionalit% of a la1 or an% act of the6overn&ent 1hen there is no case or controvers% is for that court to set itself up as arevie1er of the acts of Con$ress and of the President in violation of the principle ofseparation of po1ers and that, in the absence of a pendin$ case or controvers% involvin$the DAP and NBC No. )*+, an% decision herein could a&ount to a &ere advisor% opinionthat no court can validl% render.;

5he respondents ar$ue that it is the application of the DAP to actual situations that thepetitioners can @uestion either in the trial courts or in the C"A that if the petitioners aredissatisfied 1ith the rulin$ either of the trial courts or of the C"A, the% can appeal the

decision of the trial courts b% petition for revie1 on certiorari, or assail the decision or finalorder of the C"A b% special civil action for certiorari under Rule * of the Rules of Court.*

5he respondents= ar$u&ents and sub&issions on the procedural issue are bereft of &erit.

!ection +, Article of the +/0 Constitution expressl% provides>

!ection +. 5he 7udicial po1er shall be vested in one !upre&e Court and in such lo1er courtsas &a% be established b% la1.


10/70

5he !upre&e Court, lie all other courts, has one &ain function> to settle actualcontroversies involvin$ conflicts of ri$hts 1hich are de&andable and enforceable. 5here areri$hts 1hich are $uaranteed b% la1 but cannot be enforced b% a 7udicial part%. n a decidedcase, a husband co&plained that his 1ife 1as un1illin$ to perfor& her duties as a 1ife. 5heCourt said> 28e can tell %our 1ife 1hat her duties as such are and that she is bound toco&pl% 1ith the&, but 1e cannot force her ph%sicall% to dischar$e her &ain &arital dut% to

her husband. 5here are so&e ri$hts $uaranteed b% la1, but the% are so personal that toenforce the& b% actual co&pulsion 1ould be hi$hl% dero$ator% to hu&an di$nit%.2 5his is 1h%the first part of the second para$raph of !ection + provides that> theGe$islative, the Executive and the


11/70

MR. N"GGED". And so, is this onl% an exa&ple9

MR. C"NCEPC"N. No, no1 this is not. 5he 6entle&an see&s to identif% political@uestions 1ith 7urisdictional @uestions. But there is a difference.

MR. N"GGED". Because of the expression 27udicial po1er29

MR. C"NCEPC"N. No.


12/70

n the co&&on la1, fro& 1hich the re&ed% of certiorari evolved, the 1rit of certiorari 1asissued out of Chancer%, or the in$=s Bench, co&&andin$ a$ents or officers of the inferiorcourts to return the record of a cause pendin$ before the&, so as to $ive the part% &ore sureand speed% 7ustice, for the 1rit 1ould enable the superior court to deter&ine fro& aninspection of the record 1hether the inferior court=s 7ud$&ent 1as rendered 1ithout authorit%.5he errors 1ere of such a nature that, if allo1ed to stand, the% 1ould result in a substantial

in7ur% to the petitioner to 1ho& no other re&ed% 1as available. f the inferior court acted1ithout authorit%, the record 1as then revised and corrected in &atters of la1. 5he 1rit ofcertiorari 1as li&ited to cases in 1hich the inferior court 1as said to be exceedin$ its

7urisdiction or 1as not proceedin$ accordin$ to essential re@uire&ents of la1 and 1ould lieonl% to revie1 7udicial or @uasi-7udicial acts.

5he concept of the re&ed% of certiorari in our 7udicial s%ste& re&ains &uch the sa&e as ithas been in the co&&on la1. n this 7urisdiction, ho1ever, the exercise of the po1er to issuethe 1rit of certiorari is lar$el% re$ulated b% la%in$ do1n the instances or situations in theRules of Court in 1hich a superior court &a% issue the 1rit of certiorari to an inferior court orofficer. !ection +, Rule ) of the Rules of Court co&pellin$l% provides the re@uire&ents forthat purpose, vi>

x x x x

5he sole office of the 1rit of certiorari is the correction of errors of 7urisdiction, 1hich includesthe co&&ission of $rave abuse of discretion a&ountin$ to lac of 7urisdiction. n this re$ard,&ere abuse of discretion is not enou$h to 1arrant the issuance of the 1rit. 5he abuse ofdiscretion &ust be $rave, 1hich &eans either that the 7udicial or @uasi-7udicial po1er 1asexercised in an arbitrar% or despotic &anner b% reason of passion or personal hostilit%, orthat the respondent 7ud$e, tribunal or board evaded a positive dut%, or virtuall% refused toperfor& the dut% en7oined or to act in conte&plation of la1, such as 1hen such 7ud$e,tribunal or board exercisin$ 7udicial or @uasi-7udicial po1ers acted in a capricious or1hi&sical &anner as to be e@uivalent to lac of 7urisdiction.;+

Althou$h si&ilar to prohibition in that it 1ill lie for 1ant or excess of 7urisdiction, certiorari is tobe distin$uished fro& prohibition b% the fact that it is a corrective re&ed% used for the re-exa&ination of so&e action of an inferior tribunal, and is directed to the cause or proceedin$in the lo1er court and not to the court itself, 1hile prohibition is a preventative re&ed%issuin$ to restrain future action, and is directed to the court itself.; 5he Court expounded onthe nature and function of the 1rit of prohibition in ?ol% !pirit ?o&eo1ners Association, nc.v. Defensor>;;

A petition for prohibition is also not the proper re&ed% to assail an RR issued in the exerciseof a @uasi-le$islative function. Prohibition is an extraordinar% 1rit directed a$ainst an%tribunal, corporation, board, officer or person, 1hether exercisin$ 7udicial, @uasi-7udicial or&inisterial functions, orderin$ said entit% or person to desist fro& further proceedin$s 1hen

said proceedin$s are 1ithout or in excess of said entit%=s or person=s 7urisdiction, or areacco&panied 1ith $rave abuse of discretion, and there is no appeal or an% other plain,speed% and ade@uate re&ed% in the ordinar% course of la1. Prohibition lies a$ainst 7udicial or &inisterial functions, but not a$ainst le$islative or @uasi-le$islative functions. 6enerall%, thepurpose of a 1rit of prohibition is to eep a lo1er court 1ithin the li&its of its 7urisdiction inorder to &aintain the ad&inistration of 7ustice in orderl% channels. Prohibition is the properre&ed% to afford relief a$ainst usurpation of 7urisdiction or po1er b% an inferior court, or1hen, in the exercise of 7urisdiction in handlin$ &atters clearl% 1ithin its co$niance theinferior court trans$resses the bounds prescribed to it b% the la1, or 1here there is no

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt31http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt32http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt33http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt31http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt32http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt33


13/70

ade@uate re&ed% available in the ordinar% course of la1 b% 1hich such relief can beobtained. 8here the principal relief sou$ht is to invalidate an RR, petitioners= re&ed% is anordinar% action for its nullification, an action 1hich properl% falls under the 7urisdiction of theRe$ional 5rial Court. n an% case, petitioners= alle$ation that 2respondents are perfor&in$ orthreatenin$ to perfor& functions 1ithout or in excess of their 7urisdiction2 &a% appropriatel%be en7oined b% the trial court throu$h a 1rit of in7unction or a te&porar% restrainin$ order.

8ith respect to the Court, ho1ever, the re&edies of certiorari and prohibition are necessaril%broader in scope and reach, and the 1rit of certiorari or prohibition &a% be issued to correcterrors of 7urisdiction co&&itted not onl% b% a tribunal, corporation, board or officer exercisin$

7udicial, @uasi-7udicial or &inisterial functions but also to set ri$ht, undo and restrain an% actof $rave abuse of discretion a&ountin$ to lac or excess of 7urisdiction b% an% branch orinstru&entalit% of the 6overn&ent, even if the latter does not exercise 7udicial, @uasi-7udicialor &inisterial functions. 5his application is expressl% authoried b% the text of the secondpara$raph of !ection +, supra.

5hus, petitions for certiorari and prohibition are appropriate re&edies to raise constitutionalissues and to revie1 andHor prohibit or nullif% the acts of le$islative and executive officials.;*

Necessaril%, in dischar$in$ its dut% under !ection +, supra, to set ri$ht and undo an% act of$rave abuse of discretion a&ountin$ to lac or excess of 7urisdiction b% an% branch orinstru&entalit% of the 6overn&ent, the Court is not at all precluded fro& &ain$ the in@uir%provided the challen$e 1as properl% brou$ht b% interested or affected parties. 5he Court hasbeen thereb% entrusted expressl% or b% necessar% i&plication 1ith both the dut% and theobli$ation of deter&inin$, in appropriate cases, the validit% of an% assailed le$islative orexecutive action. 5his entrust&ent is consistent 1ith the republican s%ste& of checs andbalances.;)

#ollo1in$ our recent dispositions concernin$ the con$ressional por barrel, the Court hasbeco&e &ore alert to dischar$e its constitutional dut%. 8e 1ill not no1 refrain fro&exercisin$ our expanded 7udicial po1er in order to revie1 and deter&ine, 1ith authorit%, the

li&itations on the Chief Executive=s spendin$ po1er.

b( Re@uisites for the exercise of thepo1er of 7udicial revie1 1ereco&plied 1ith

5he re@uisites for the exercise of the po1er of 7udicial revie1 are the follo1in$, na&el%> '+(there &ust bean actual case or 7usticiable controvers% before the Court '( the @uestionbefore the Court &ust be ripe for ad7udication ';( the person challen$in$ the act &ust be aproper part% and '*( the issue of constitutionalit% &ust be raised at the earliest opportunit%and &ust be the ver% litis &ota of the case.;

5he first re@uisite de&ands that there be an actual case callin$ for the exercise of 7udicialpo1er b% the Court.;0 An actual case or controvers%, in the 1ords of Bel$ica v. Executive!ecretar% "choa>;/

x x x is one 1hich involves a conflict of le$al ri$hts, an assertion of opposite le$al clai&s,susceptible of 7udicial resolution as distin$uished fro& a h%pothetical or abstract difference or dispute. n other 1ords, 23t4here &ust be a contrariet% of le$al ri$hts that can be interpretedand enforced on the basis of existin$ la1 and 7urisprudence.2 Related to the re@uire&ent ofan actual case or controvers% is the re@uire&ent of 2ripeness,2 &eanin$ that the @uestions

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt34http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt35http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt36http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt37http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt37http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt38http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt34http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt35http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt36http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt37http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt38


14/70

raised for constitutional scrutin% are alread% ripe for ad7udication. 2A @uestion is ripe forad7udication 1hen the act bein$ challen$ed has had a direct adverse effect on the individualchallen$in$ it. t is a prere@uisite that so&ethin$ had then been acco&plished or perfor&edb% either branch before a court &a% co&e into the picture, and the petitioner &ust alle$e theexistence of an i&&ediate or threatened in7ur% to itself as a result of the challen$ed action.228ithal, courts 1ill decline to pass upon constitutional issues throu$h advisor% opinions,

bereft as the% are of authorit% to resolve h%pothetical or &oot @uestions.2

An actual and 7usticiable controvers% exists in these consolidated cases. 5he inco&patibilit%of the perspectives of the parties on the constitutionalit% of the DAP and its relevantissuances satisf% the re@uire&ent for a conflict bet1een le$al ri$hts. 5he issues bein$ raisedherein &eet the re@uisite ripeness considerin$ that the challen$ed executive acts 1erealread% bein$ i&ple&ented b% the DBM, and there are aver&ents b% the petitioners thatsuch i&ple&entation 1as repu$nant to the letter and spirit of the Constitution. Moreover, thei&ple&entation of the DAP entailed the allocation and expenditure of hu$e su&s of publicfunds. 5he fact that public funds have been allocated, disbursed or utilied b% reason or onaccount of such challen$ed executive acts $ave rise, therefore, to an actual controvers% thatis ripe for ad7udication b% the Court.

t is true that !ec. Abad &anifested durin$ the 2n conclusion, Iour ?onors, &a% infor& the Court that because the DAP hasalread% full% served its purpose, the Ad&inistration=s econo&ic &ana$ers havereco&&ended its ter&ination to the President. x x x.2 ;

5he !olicitor 6eneral then @uicl% confir&ed the ter&ination of the DAP as a pro$ra&, andur$ed that its ter&ination had alread% &ooted the challen$es to the DAP=s constitutionalit%,vi>

DAP as a pro$ra&, no lon$er exists, thereb% &ootin$ these present cases brou$ht tochallen$e its constitutionalit%. An% constitutional challen$e should no lon$er be at the level of

the pro$ra&, 1hich is no1 extinct, but at the level of its prior applications or the specificdisburse&ents under the no1 defunct polic%. 8e challen$e the petitioners to pic andchoose 1hich a&on$ the ++ DAP pro7ects the% 1ish to nullif%, the full details 1e 1ill haveprovided b% #ebruar% ). 8e ur$e this Court to be cautious in li&itin$ the constitutionalauthorit% of the President and the Ge$islature to respond to the d%na&ic needs of the countr%and the evolvin$ de&ands of $overnance, lest 1e end up strai$ht 7acetin$ our electedrepresentatives in 1a%s not consistent 1ith our constitutional structure and de&ocraticprinciples.*:

A &oot and acade&ic case is one that ceases to present a 7usticiable controvers% b% virtueof supervenin$ events, so that a declaration thereon 1ould be of no practical use or value. *+

5he Court cannot a$ree that the ter&ination of the DAP as a pro$ra& 1as a supervenin$event that effectivel% &ooted these consolidated cases. eril%, the Court had in the pastexercised its po1er of 7udicial revie1 despite the cases bein$ rendered &oot and acade&icb% supervenin$ events, lie> '+( 1hen there 1as a $rave violation of the Constitution '(1hen the case involved a situation of exceptional character and 1as of para&ount publicinterest ';( 1hen the constitutional issue raised re@uired the for&ulation of controllin$principles to $uide the Bench, the Bar and the public and '*( 1hen the case 1as capable ofrepetition %et evadin$ revie1.*

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt39http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt40http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt41http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt42http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt42http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt39http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt40http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt41http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt42


15/70

Assu&in$ that the petitioners= several sub&issions a$ainst the DAP 1ere ulti&atel%sustained b% the Court here, these cases 1ould definitel% co&e under all the exceptions.?ence, the Court should not abstain fro& exercisin$ its po1er of 7udicial revie1.

Did the petitioners have the le$al standin$ to sue9

Ge$al standin$, as a re@uisite for the exercise of 7udicial revie1, refers to 2a ri$ht ofappearance in a court of 7ustice on a $iven @uestion.2*; 5he concept of le$al standin$, orlocus standi, 1as particularl% discussed in De Castro v.

n public or constitutional liti$ations, the Court is often burdened 1ith the deter&ination of thelocus standi of the petitioners due to the ever-present need to re$ulate the invocation of theintervention of the Court to correct an% official action or polic% in order to avoid obstructin$the efficient functionin$ of public officials and offices involved in public service. t is re@uired,therefore, that the petitioner &ust have a personal stae in the outco&e of the controvers%,for, as indicated in A$an,

5he @uestion on le$al standin$ is 1hether such parties have 2alle$ed such a personal staein the outco&e of the controvers% as to assure that concrete adverseness 1hich sharpensthe presentation of issues upon 1hich the court so lar$el% depends for il lu&ination of difficultconstitutional @uestions.2 Accordin$l%, it has been held that the interest of a person assailin$the constitutionalit% of a statute &ust be direct and personal. ?e &ust be able to sho1, notonl% that the la1 or an% $overn&ent act is invalid, but also that he sustained or is in i&&inentdan$er of sustainin$ so&e direct in7ur% as a result of its enforce&ent, and not &erel% that hesuffers thereb% in so&e indefinite 1a%. t &ust appear that the person co&plainin$ has beenor is about to be denied so&e ri$ht or privile$e to 1hich he is la1full% entitled or that he isabout to be sub7ected to so&e burdens or penalties b% reason of the statute or actco&plained of.

t is true that as earl% as in +;0, in People v. era, the Court adopted the direct in7ur% testfor deter&inin$ 1hether a petitioner in a public action had locus standi. 5here, the Court heldthat the person 1ho 1ould assail the validit% of a statute &ust have 2a personal andsubstantial interest in the case such that he has sustained, or 1ill sustain direct in7ur% as aresult.2 era 1as follo1ed in Custodio v. President of the !enate, Manila Race ?orse5rainers= Association v. De la #uente, Anti-Chinese Gea$ue of the Philippines v. #elix, andPascual v. !ecretar% of Public 8ors.

Iet, the Court has also held that the re@uire&ent of locus standi, bein$ a &ere proceduraltechnicalit%, can be 1aived b% the Court in the exercise of its discretion. #or instance, in+*, in Araneta v. Din$lasan, the Court liberalied the approach 1hen the cases had2transcendental i&portance.2 !o&e notable controversies 1hose petitioners did not pass thedirect in7ur% test 1ere allo1ed to be treated in the sa&e 1a% as in Araneta v. Din$lasan.

n the +0) decision in A@uino v. Co&&ission on Elections, this Court decided to resolve theissues raised b% the petition due to their 2far reachin$ i&plications,2 even if the petitioner hadno personalit% to file the suit. 5he liberal approach of A@uino v. Co&&ission on Elections hasbeen adopted in several notable cases, per&ittin$ ordinar% citiens, le$islators, and civicor$aniations to brin$ their suits involvin$ the constitutionalit% or validit% of la1s, re$ulations,and rulin$s.

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt43http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt44http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt43http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt44


16/70

?o1ever, the assertion of a public ri$ht as a predicate for challen$in$ a supposedl% ille$al orunconstitutional executive or le$islative action rests on the theor% that the petitionerrepresents the public in $eneral. Althou$h such petitioner &a% not be as adversel% affectedb% the action co&plained a$ainst as are others, it is enou$h that he sufficientl% de&onstratesin his petition that he is entitled to protection or relief fro& the Court in the vindication of apublic ri$ht.

Juite often, as here, the petitioner in a public action sues as a citien or taxpa%er to $ainlocus standi. 5hat is not surprisin$, for even if the issue &a% appear to concern onl% thepublic in $eneral, such capacities nonetheless e@uip the petitioner 1ith ade@uate interest tosue. n David v. Macapa$al-Arro%o, the Court aptl% explains 1h%>

Case la1 in &ost 7urisdiction sno1 allo1s both 2citien2 and 2taxpa%er2 standin$ in publicactions. 5he distinction 1as first laid do1n in Beaucha&p v. !il, 1here it 1as held that theplaintiff in a taxpa%er=s suit is in a different cate$or% fro& the plaintiff in a citien=s suit. n thefor&er, the plaintiff is affected b% the expenditure of public funds, 1hile in the latter, he is butthe &ere instru&ent of the public concern. As held b% the Ne1 Ior !upre&e Court inPeople ex rel Case v. Collins> 2n &atter of &ere public ri$ht, ho1everLthe people are the

real partiesLt is at least the ri$ht, if not the dut%, of ever% citien to interfere and see that apublic offence be properl% pursued and punished, and that a public $rievance be re&edied.28ith respect to taxpa%er=s suits, 5err v.


17/70

exercise of its broad and 1ise discretion 2to 1aive the re@uire&ent and so re&ove thei&pedi&ent to its addressin$ and resolvin$ the serious constitutional @uestions raised.2):

.!ubstantive ssues

+."vervie1 of the Bud$et !%ste&

An understandin$ of the Bud$et !%ste& of the Philippines 1ill aid the Court in properl%appreciatin$ and 7ustl% resolvin$ the substantive issues.

a( "ri$in of the Bud$et !%ste&

5he ter& 2bud$et2 ori$inated fro& the Middle En$lish 1ord bou$et that had derived fro& theGatin 1ord bul$a '1hich &eans ba$ or purse(.)+

n the Philippine settin$, Co&&on1ealth Act 'CA( No. * 'Bud$et Act( defined 2bud$et2 as

the financial pro$ra& of the National 6overn&ent for a desi$nated fiscal %ear, consistin$ ofthe state&ents of esti&ated receipts and expenditures for the fiscal %ear for 1hich it 1asintended to be effective based on the results of operations durin$ the precedin$ fiscal %ears.5he ter& 1as $iven a different &eanin$ under Republic Act No. 'Revised Bud$et Act( b%describin$ the bud$et as the delineation of the services and products, or benefits that 1ouldaccrue to the public to$ether 1ith the esti&ated unit cost of each t%pe of service, product orbenefit.) #or a forthri$ht definition, bud$et should si&pl% be identified as the financial plan ofthe 6overn&ent,); or 2the &aster plan of $overn&ent.2)*

5he concept of bud$etin$ has not been the product of recent econo&ies. n realit%, financin$public $oals and activities 1as an idea that existed fro& the creation of the !tate.)) 5o protectthe people, the territor% and soverei$nt% of the !tate, its $overn&ent &ust perfor& vital

functions that re@uired public expenditures. At the be$innin$, enor&ous public expenditures1ere spent for 1ar activities, preservation of peace and order, securit%, ad&inistration of 7ustice, reli$ion, and suppl% of li&ited $oods and services.) n order to finance thoseexpenditures, the !tate raised revenues throu$h taxes and i&positions. )0 5hus, bud$etin$beca&e necessar% to allocate public revenues for specific $overn&ent functions.)/ 5he!tate=s bud$etin$ &echanis& eventuall% developed throu$h the %ears 1ith the $ro1in$functions of its $overn&ent and chan$es in its &aret econo&%.

5he Philippine Bud$et !%ste& has been $reatl% influenced b% 1estern public financialinstitutions. 5his is because of the countr%=s past as a colon% successivel% of !pain and thenited !tates for a lon$ period of ti&e. Man% aspects of the countr%=s public fiscalad&inistration, includin$ its Bud$et !%ste&, have been naturall% patterned after the practicesand experiences of the 1estern public financial institutions. At an% rate, the Philippine Bud$et

!%ste& is presentl% $uided b% t1o principal ob7ectives that are vital to the develop&ent of apro$ressive de&ocratic $overn&ent, na&el%> '+( to carr% on all $overn&ent activities under aco&prehensive fiscal plan developed, authoried and executed in accordance 1ith theConstitution, prevailin$ statutes and the principles of sound public &ana$e&ent and '( toprovide for the periodic revie1 and disclosure of the bud$etar% status of the 6overn&ent insuch detail so that persons entrusted b% la1 1ith the responsibilit% as 1ell as the enli$htenedcitienr% can deter&ine the ade@uac% of the bud$et actions taen, authoried or proposed,as 1ell as the true financial position of the 6overn&ent.)

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt50http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt51http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt52http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt52http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt53http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt54http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt55http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt56http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt57http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt58http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt58http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt59http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt50http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt51http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt52http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt53http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt54http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt55http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt56http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt57http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt58http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt59


18/70

b( Evolution of the Philippine Bud$et !%ste&

5he bud$et process in the Philippines evolved fro& the earl% %ears of the A&erican Re$i&eup to the passa$e of the '+( Bud$et Preparation'( Bud$et Ge$islation ';( Bud$et Execution and '*( Accountabilit%. Each phase is distinctl%separate fro& the others but the% overlap in the i&ple&entation of the bud$et durin$ thebud$et %ear.

c.+.Bud$et Preparation0

5he bud$et preparation phase is co&&enced throu$h the issuance of a Bud$et Call b% theDBM. 5he Bud$et Call contains bud$et para&eters earlier set b% the Develop&ent Bud$etCoordination Co&&ittee 'DBCC( as 1ell as polic% $uidelines and procedures to aid$overn&ent a$encies in the preparation and sub&ission of their bud$et proposals. 5heBud$et Call is of t1o inds, na&el%> '+( a National Bud$et Call, 1hich is addressed to alla$encies, includin$ state universities and colle$es and '( a Corporate Bud$et Call, 1hich isaddressed to all $overn&ent-o1ned and -controlled corporations '6"CCs( and $overn&entfinancial institutions '6#s(.

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt60http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt61http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt62http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt62http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt63http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt64http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt65http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt66http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt67http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt60http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt61http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt62http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt63http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt64http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt65http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt66http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt67


19/70

#ollo1in$ the issuance of the Bud$et Call, the various depart&ents and a$encies sub&ittheir respective A$enc% Bud$et Proposals to the DBM. 5o boost citien participation, thecurrent ad&inistration has tased the various depart&ents and a$encies to partner 1ith civilsociet% or$aniations and other citien-staeholders in the preparation of the A$enc% Bud$etProposals, 1hich proposals are then presented before a technical panel of the DBM inscheduled bud$et hearin$s 1herein the various depart&ents and a$encies are $iven the

opportunit% to defend their bud$et proposals. DBM bureaus thereafter revie1 the A$enc%Bud$et Proposals and co&e up 1ith reco&&endations for the Executive Revie1 Board,co&prised b% the DBM !ecretar% and the DBM=s senior officials. 5he discussions of theExecutive Revie1 Board cover the prioritiation of pro$ra&s and their correspondin$ supportvis--vis the priorit% a$enda of the National 6overn&ent, and their i&ple&entation.

5he DBM next consolidates the reco&&ended a$enc% bud$ets into the National ExpenditurePro$ra& 'NEP(and a Bud$et of Expenditures and !ources of #inancin$ 'BE!#(. 5he NEPprovides the details of spendin$ for each depart&ent and a$enc% b% pro$ra&, activit% orpro7ect 'PAP(, and is sub&itted in the for& of a proposed 6AA. 5he Details of !electedPro$ra&s and Pro7ects is the &ore detailed disa$$re$ation of e% PAPs in the NEP,especiall% those in line 1ith the National 6overn&ent=s develop&ent plan. 5he !taffin$!u&&ar% provides the staffin$ co&ple&ent of each depart&ent and a$enc%, includin$ thenu&ber of positions and a&ounts allocated.

5he NEP and BE!# are thereafter presented b% the DBM and the DBCC to the Presidentand the Cabinet for further refine&ents or reprioritiation. "nce the NEP and the BE!# areapproved b% the President and the Cabinet, the DBM prepares the bud$et docu&ents forsub&ission to Con$ress. 5he bud$et docu&ents consist of> '+( the President=s Bud$etMessa$e, throu$h 1hich the President explains the polic% fra&e1or and bud$et priorities'( the BE!#, &andated b% !ection , Article of the Constitution,/ 1hich contains the&acroecono&ic assu&ptions, public sector context, breado1n of the expenditures andfundin$ sources for the fiscal %ear and the t1o previous %ears and ';( the NEP.

Public or $overn&ent expenditures are $enerall% classified into t1o cate$ories, specificall%>

'+( capital expenditures or outla%s and '( current operatin$ expenditures. Capitalexpenditures are the expenses 1hose usefulness lasts for &ore than one %ear, and 1hichadd to the assets of the 6overn&ent, includin$ invest&ents in the capital of $overn&ent-o1ned or controlled corporations and their subsidiaries. Current operatin$ expenditures arethe purchases of $oods and services in current consu&ption the benefit of 1hich does notextend be%ond the fiscal %ear.0: 5he t1o co&ponents of current expenditures are those forpersonal services 'P!(, and those for &aintenance and other operatin$ expenses'M""E(.

Public expenditures are also broadl% $rouped accordin$ to their functions into> '+( econo&icdevelop&ent expenditures 'i.e., expenditures on a$riculture and natural resources,transportation and co&&unications, co&&erce and industr%, and other econo&icdevelop&ent efforts(0+ '( social services or social develop&ent expenditures 'i.e.,

$overn&ent outla% on education, public health and &edicare, labor and 1elfare andothers(0 ';( $eneral $overn&ent or $eneral public services expenditures 'i.e., expendituresfor the $eneral $overn&ent, le$islative services, the ad&inistration of 7ustice, and forpensions and $ratuities(0; '*( national defense expenditures 'i.e., sub-divided into nationalsecurit% expenditures and expenditures for the &aintenance of peace and order(0* and ')(public debt.0)

Public expenditures &a% further be classified accordin$ to the nature of funds, i.e., $eneralfund, special fund or bond fund.0

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt68http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt69http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt70http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt71http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt71http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt72http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt72http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt73http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt74http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt75http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt76http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt68http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt69http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt70http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt71http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt72http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt73http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt74http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt75http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt76


20/70

"n the other hand, public revenues co&ple&ent public expenditures and cover all inco&e or receipts of the $overn&ent treasur% used to support $overn&ent expenditures. 00

Classical econo&ist Ada& !&ith cate$oried public revenues based on t1o principalsources, statin$> 25he revenue 1hich &ust defra%Lthe necessar% expenses of $overn&ent&a% be dra1n either, first fro& so&e fund 1hich peculiarl% belon$s to the soverei$n or

co&&on1ealth, and 1hich is independent of the revenue of the people, or, secondl%, fro&the revenue of the people.20/ Ada& !&ith=s classification relied on the t1o aspects of thenature of the !tate> first, the !tate as a 7uristic person 1ith an artificial personalit%, and,second, the !tate as a soverei$n or entit% possessin$ supre&e po1er. nder the firstaspect, the !tate could hold propert% and en$a$e in trade, thereb% derivin$ 1hat is called its@uasi private inco&e or revenues, and 1hich 2peculiarl% belon$ed to the soverei$n.2 nderthe second aspect, the !tate could collect b% i&posin$ char$es on the revenues of itssub7ects in the for& of taxes.0

n the Philippines, public revenues are $enerall% derived fro& the follo1in$ sources, to 1it>'+( tax revenues'i.e., co&pulsor% contributions to finance $overn&ent activities( /: '(capital revenues'i.e., proceeds fro& sales of fixed capital assets or scrap thereof and public

do&ain, and $ains on such sales lie sale of public lands, buildin$s and other structures,e@uip&ent, and other properties recorded as fixed assets( /+ ';( $rants'i.e., voluntar%contributions and aids $iven to the 6overn&ent for its operation on specific purposes in thefor& of &one% andHor &aterials, and do not re@uire an% &onetar% co&&it&ent on the part ofthe recipient(/ '*( extraordinar% inco&e'i.e., repa%&ent of loans and advances &ade b%$overn&ent corporations and local $overn&ents and the receipts and shares in inco&e ofthe Bano !entral n$ Pilipinas, and other receipts(/; and ')( public borro1in$s'i.e., proceedsof repa%able obli$ations $enerall% 1ith interest fro& do&estic and forei$n creditors of the6overn&ent in $eneral, includin$ the National 6overn&ent and its political subdivisions(./*

More specificall%, public revenues are classified as follo1s>/)

G3356l Io3!ubsid% nco&e fro& National6overn&ent

!ubsid% fro& Central "ffice

!ubsid% fro& Re$ional"fficeH!taff Bureaus

nco&e fro& 6overn&ent!ervices

nco&e fro& 6overn&entBusiness "perations

!ales Revenue

Rent nco&e

nsurance nco&e

Dividend nco&e

nterest nco&e

!ale of Confiscated 6oods andProperties

#orei$n Exchan$e '#"REK(

S3:;: Io3nco&e 5axes

Propert% 5axes

5axes on 6oods and !ervices

5axes on nternational 5rade and5ransactions

"ther 5axes .#ines and Penalties-5ax Revenue

"ther !pecific nco&e

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt77http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt78http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt78http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt79http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt82http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt82http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt83http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt84http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt85http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt77http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt78http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt79http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt82http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt83http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt84http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt85


21/70

6ains

Miscellaneous "peratin$ and!ervice nco&e

#ines and Penalties-6overn&ent!ervices and Business "perations

nco&e fro& 6rants andDonations

c.. Bud$et Ge$islation/

5he Bud$et Ge$islation Phase covers the period co&&encin$ fro& the ti&e Con$ressreceives the President=s Bud$et, 1hich is inclusive of the NEPand the BE!#, up to thePresident=s approval of the 6AA. 5his phase is also no1n as the Bud$et AuthoriationPhase, and involves the si$nificant participation of the Ge$islative throu$h its deliberations.

nitiall%, the President=s Bud$et is assi$ned to the ?ouse of Representatives= AppropriationsCo&&ittee on #irst Readin$. 5he Appropriations Co&&ittee and its various !ub-Co&&itteesschedule and conduct bud$et hearin$s to exa&ine the PAPs of the depart&ents anda$encies. 5hereafter, the ?ouse of Representatives drafts the 6eneral Appropriations Bill'6AB(./0

5he 6ABis sponsored, presented and defended b% the ?ouse of Representatives= Appropriations Co&&ittee and !ub-Co&&ittees in plenar% session. As 1ith other la1s, the6AB is approved on 5hird Readin$ before the ?ouse of Representatives= version istrans&itted to the !enate.//

After trans&ission, the !enate conducts its o1n co&&ittee hearin$s on the 6AB. 5o

expedite proceedin$s, the !enate &a% conduct its co&&ittee hearin$s si&ultaneousl% 1iththe ?ouse of Representatives= deliberations. 5he !enate=s #inance Co&&ittee and its !ub-Co&&ittees &a% sub&it the proposed a&end&ents to the 6AB to the plenar% of the !enateonl% after the ?ouse of Representatives has for&all% trans&itted its version to the !enate.5he !enate version of the 6AB is lie1ise approved on 5hird Readin$./

5he ?ouse of Representatives and the !enate then constitute a panel each to sit in theBica&eral Conference Co&&ittee for the purpose of discussin$ and har&oniin$ theconflictin$ provisions of their versions of the 6AB. 5he 2har&onied2 version of the 6AB isnext presented to the President for approval. : 5he President revie1s the 6AB, and preparesthe eto Messa$e 1here bud$et ite&s are sub7ected to direct veto,+ or are identified forconditional i&ple&entation.

f, b% the end of an% fiscal %ear, the Con$ress shall have failed to pass the 6AB for theensuin$ fiscal %ear, the 6AA for the precedin$ fiscal %ear shall be dee&ed re-enacted andshall re&ain in force and effect until the 6AB is passed b% the Con$ress.

c.;. Bud$et Execution;

8ith the 6AA no1 in full force and effect, the next step is the i&ple&entation of the bud$et.5he Bud$et Execution Phase is pri&aril% the function of the DBM, 1hich is tased to perfor&

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt86http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt87http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt88http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt89http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt90http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt91http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt92http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt93http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt86http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt87http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt88http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt89http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt90http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt91http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt92http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt93


22/70

the follo1in$ procedures, na&el%> '+( to issue the pro$ra&s and $uidelines for the release offunds '( to prepare an Allot&ent and Cash Release Pro$ra& ';( to release allot&ents and'*( to issue disburse&ent authorities.

5he i&ple&entation of the 6AA is directed b% the $uidelines issued b% the DBM. Prior to this,the various depart&ents and a$encies are re@uired to sub&it Bud$et Execution

Docu&ents'BED( to outline their plans and perfor&ance tar$ets b% la%in$ do1n the ph%sicaland financial plan, the &onthl% cash pro$ra&, the esti&ate of &onthl% inco&e, and the list ofobli$ations that are not %et due and de&andable.

5hereafter, the DBM prepares an Allot&ent Release Pro$ra& 'ARP(and a Cash ReleasePro$ra& 'CRP(.5he ARP sets a li&it for allot&ents issued in $eneral and to a specifica$enc%. 5he CRP fixes the &onthl%, @uarterl% and annual disburse&ent levels.

Allot&ents, 1hich authorie an a$enc% to enter into obli$ations, are issued b% the DBM. Allot&ents are lesser in scope than appropriations, in that the latter e&brace the $eneralle$islative authorit% to spend. Allot&ents &a% be released in t1o for&s F throu$h aco&prehensive A$enc% Bud$et Matrix 'ABM(,* or, individuall%, b% !AR".)

Ar&ed 1ith either the ABM or the !AR", a$encies beco&e authoried to incurobli$ations on behalf of the 6overn&ent in order to i&ple&ent their PAPs. "bli$ations &a%be incurred in various 1a%s, lie hirin$ of personnel, enterin$ into contracts for the suppl% of$oods and services, and usin$ utilities.

n order to settle the obli$ations incurred b% the a$encies, the DBM issues a disburse&entauthorit% so that cash &a% be allocated in pa%&ent of the obli$ations. A cash ordisburse&ent authorit% that is periodicall% issued is referred to as a Notice of Cash Allocation'NCA(,0 1hich issuance is based upon an a$enc%=s sub&ission of its Monthl% Cash Pro$ra&and other re@uired docu&ents. 5he NCA specifies the &axi&u& a&ount of cash that can be1ithdra1n fro& a $overn&ent servicin$ ban for the period indicated. Apart fro& the NCA,the DBM &a% issue a Non-Cash Avail&ent Authorit%'NCAA( to authorie non-cashdisburse&ents, or a Cash Disburse&ent Ceilin$'CDC( for depart&ents 1ith overseasoperations to allo1 the use of inco&e collected b% their forei$n posts for their operatin$re@uire&ents.

Actual disburse&ent or spendin$ of $overn&ent funds ter&inates the Bud$et ExecutionPhase and is usuall% acco&plished throu$h the Modified Disburse&ent !che&e under 1hichdisburse&ents char$eable a$ainst the National 5reasur% are coursed throu$h the$overn&ent servicin$ bans.

c.*. Accountabilit%/

Accountabilit% is a si$nificant phase of the bud$et c%cle because it ensures that the

$overn&ent funds have been effectivel% and efficientl% utilied to achieve the !tate=s socio-econo&ic $oals. t also allo1s the DBM to assess the perfor&ance of a$encies durin$ thefiscal %ear for the purpose of i&ple&entin$ refor&s and establishin$ ne1 policies.

An a$enc%=s accountabilit% &a% be exa&ined and evaluated throu$h '+( perfor&ance tar$etsand outco&es '( bud$et accountabilit% reports ';( revie1 of a$enc% perfor&ance and '*(audit conducted b% the Co&&ission on Audit'C"A(.

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt94http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt94http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt95http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt96http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt97http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt98http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt94http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt95http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt96http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt97http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt98


23/70

.

Nature of the DAP as a fiscal plan

a. DAP 1as a pro$ra& desi$ned topro&ote econo&ic $ro1th

Polic% is al1a%s a part of ever% bud$et and fiscal decision of an% Ad&inistration. 5henational bud$et the Executive prepares and presents to Con$ress represents the

Ad&inistration=s 2blueprint for public polic%2 and reflects the 6overn&ent=s $oals andstrate$ies.+:: As such, the national bud$et beco&es a tan$ible representation of the pro$ra&sof the 6overn&ent in &onetar% ter&s, specif%in$ therein the PAPs and services for 1hichspecific a&ounts of public funds are proposed and allocated.+:+ E&bodied in ever% nationalbud$et is $overn&ent spendin$.+:

8hen he assu&ed office in the &iddle of :+:, President A@uino &ade efficienc% andtransparenc% in $overn&ent spendin$ a si$nificant focus of his Ad&inistration. Iet, althou$hsuch focus resulted in an i&proved fiscal deficit of :.)O in the $ross do&estic product '6DP(

fro& '+( &ultiplier i&pact on the econo&% and infrastructure develop&ent'( beneficial effect on the poor and ';( translation into disburse&ents.++*

b. ?istor% of the i&ple&entation of the DAP, and sources of fundsunder the DAP

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt99http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt99http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt100http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt100http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt100http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt101http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt102http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt102http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt103http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt104http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt105http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt106http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt107http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt108http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt108http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt109http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt110http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt111http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt112http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt113http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt113http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt114http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt99http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt100http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt101http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt102http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt103http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt104http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt105http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt106http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt107http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt108http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt109http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt110http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt111http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt112http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt113http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt114


24/70

?o1 the Ad&inistration=s econo&ic &ana$ers conceptualied and developed the DAP, andfinall% presented it to the President re&ains unno1n because the relevant docu&entsappear to be scarce.

5he earliest available docu&ent relatin$ to the $enesis of the DAP 1as the &e&orandu& of"ctober +,:++ fro& !ec. Abad seein$ the approval of the President to i&ple&ent the

proposed DAP. 5he &e&orandu&, 1hich contained a list of the fundin$ sources for P0.++billion and of the proposed priorit% pro7ects to be funded,++) reads>

MEM"RANDM #"R 5?E PRE!DEN5

x x x x

!B #I :++ PR"P"!ED D!BR!EMEN5 ACCEGERA5"N PR"6RAM'PR" "C5"BER +, :++

Mr. President, this is to for&all% confir& %our approval of the Disburse&ent AccelerationPro$ra& totalin$ P0.++ billion. 8e are alread% 1orin$ 1ith all the a$encies concerned forthe i&&ediate execution of the pro7ects therein.

A. #und !ources for the Acceleration Pro$ra&

%u< Sou53=Aou>

I :ll:oP

#3=5:>:oA>:o

R3?u3=>3<

I :++

nreleasedersonalervices 'P!(ppropriations

;:,::: nreleased Personnel

!ervices 'P!(appropriations 1hich1ill lapse at the end of #I :++ but &a% bepooled as savin$s andreali$ned for priorit%pro$ra&s that re@uirei&&ediate fundin$

Declare as

savin$s andapproveHauthorie its usefor the :++Disburse&ent

AccelerationPro$ra&

I :++nreleasedppropriations

*/ nreleasedappropriations 'slo1&ovin$ pro7ects and

pro$ra&s for discontinuance(

I :+:npro$ra&&edund

+,;; !upported b% the 6#Dividends

Approve andauthorie its usefor the :++Disburse&ent

Acceleration

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt115http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt115


25/70

Pro$ra&

I :+:arr%over ppropriation

+,)** nreleasedappropriations 'slo1&ovin$ pro7ects and

pro$ra&s for discontinuance( andsavin$s fro& ero-based Bud$etin$nitiative

8ith prior approval fro&the President in

Nove&ber :+:to declare assavin$s and 1ithauthorit% to usefor priorit%pro7ects

I :++ Bud$ete&s for eali$n&ent

0,0*/ #I :++ A$enc%Bud$et ite&s that canbe reali$ned 1ithin thea$enc% to fund ne1 fastdisbursin$ pro7ects

DP8?-;./+ BillionDA F .*0 BillionD"5 F +.::: BillionDepEd F 0: Million

#or infor&ation

5"5AG 0.++:

B. Pro7ects in the Disburse&ent Acceleration Pro$ra&

'Descriptions of pro7ects attached as Annex A(

6"CCs and 6#s

A$enc%HPro7ect'!AR" and NCA Release(

Allot&ent'in Million Php(

+. GR5A> Rehabilitation of GR5 + and +,//

. N?A>

a. Resettle&ent of North 5rian$le residents toCa&arin A0b. ?ousin$ for B#PHB


26/70

*. CRED5 N#" C"RP> Establish&ent of centralied credit infor&ation s%ste&

0)

). PD!> purchase of land to relocate the PD!office and buildin$ construction

+::

. ?6C> E@uit% infusion for credit insuranceand &ort$a$e $uarant% operations of ?6C

*::

0. P?C> "bli$ations incurred 'pre&iu&subsid% for indi$ent fa&ilies( in a. Pediatric Pul&onar% Pro$ra&b. Bio-re$enerative 5echnolo$% Pro$ra&'!te&-Cell Research F sub7ect to le$alrevie1 and presentation(

+:)

;)

0:

+. 5DC"RP> N6 E@uit% infusion

)0:

5"5AG ,*)


27/70

N6AsHG6s

A$enc%HPro7ect Allot&ent'!AR"(

'n Million

Php(

CashRe@uire&ent

'NCA(

+;. D"#-BR> NP!5ARcentraliation of dataprocessin$ and others '5o bes%nchronied 1ith 6#M!activities(

0)/

0)/

+*. C"A> 5 infrastructurepro$ra& and hirin$ of additional liti$ational experts

+**

+**

+). DND-PA#> "n Base ?ousin$

#acilities and Co&&unicationE@uip&ent

;:

;:

+. DA>a. rri$ation, #MRs andnte$rated Co&&unit% Based Multi-!pecies?atcher% and A@uasilvi#ar&in$b. Mindanao RuralDevelop&ent Pro7ect

,)

+,

+

,;

+,

+/;

c. NA A$no River nte$rated

rri$ation Pro7ect *++ *++

+0. DAR>a. A$rarian Refor&Co&&unities Pro7ect b. Gando1ners Co&pensation

+,;

+,;

+,;

+;),*;

+/. DBM> Conduct of National!urve% of #ar&ersH#isherfolsHps

)

)

+. D" "peratin$ re@uire&entsof ): investi$ation a$ents and

+) state attorne%s

++

++

:. D"5> Preservation of the CineCorre$idor Co&plex ) )

+. "PAPP> Activities for PeaceProcess 'PAMANA- Pro7ectdetails> bud$et breado1n,


28/70

i&ple&entation plan, andconditions on fund releaseattached as Annex B(

+,/+

+,/+

. D"!5

a. Establish&ent of NationalMeterolo$ical and Cli&ateCenter b. Enhance&ent of Doppler Radar Net1or for National8eather 8atch, Accurate#orecastin$ and #lood Earl%8arnin$

*)

0)

+:

*)

0)

+:

;. D"#-B"C> 5o settle theprincipal obli$ations 1ithPDC consistent 1ith thea$ree&ent 1ith the C!! and

!6!

,/::

,/::

*. "E"-#DCP> Establish&ent of the National #il& Archive andlocal cine&athe@ues, and other local activities

:

:

). DP8?> arious infrastructurepro7ects ),):: ),)::

. DepEdHERD5HD"!5> 5hinClient Cloud Co&putin$

Pro7ect

0:

0:

0. D"?> ?irin$ of nurses and&id1ives * *

/. 5E!DA> 5rainin$ Pro$ra& inpartnership 1ith BP" industr%and other sectors

+,+::

+,+::

. DG6> Perfor&ance Challen$e#und 'People E&po1eredCo&&unit% DrivenDevelop&ent 1ith D!8D and

NAPC(

):

):

;:. ARMM> Co&prehensive Peaceand Develop&ent ntervention /,) /,)

;+. D"5C-MR5> Purchase of additional MR5 cars *,):: -


29/70

;. G6 !upport #und ,):: ,)::

;;. arious "ther Gocal Pro7ects ,):: ,)::

;*. Develop&ent Assistance to the

Province of Jueon 0): 0):

5"5AG *),+) **,:::

C. !u&&ar%

#und !ourcesdentified for Approval'n Million

Php(

Allot&entsfor Release

CashRe@uire&ents for

Release in #I:++

5otal 0,++: 0,++: 0:,/)

6"CCs ,/) ,/)

N6AsHG6s *),+) **,:::

#or ?is Excellenc%=s Consideration

'!$d.( #G"RENC" B. ABAD

3H4 APPR"ED

3 4 D!APPR"ED

'!$d.( ?.E. BEN6N" !. AJN",

"C5 +, :++

5he &e&orandu& of "ctober +, :++ 1as follo1ed b% another &e&orandu& for thePresident dated Dece&ber +, :++++ re@uestin$ o&nibus authorit% to consolidate thesavin$s and unutilied balances for fiscal %ear :++. Pertinent portions of the &e&orandu&of Dece&ber +, :++ read>

MEM"RANDM #"R 5?E PRE!DEN5

x x x x

!B "&nibus Authorit% to Consolidate !avin$sHnutilied Balances and itsReali$n&ent

DA5E> Dece&ber +, :++

http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt116http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt116http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt116


30/70

5his is to respectfull% re@uest for the $rant of "&nibus Authorit% to consolidatesavin$sHunutilied balances in #I :++ correspondin$ to co&pleted or discontinued pro7ects1hich &a% be pooled to fund additional pro7ects or expenditures.

n addition, Mr. President, this &easure 1ill allo1 us to undertae pro7ects even if theiri&ple&entation carries over to :+ 1ithout necessaril% i&pactin$ on our bud$et deficit cap

next %ear.

BAC6R"ND

+.: 5he DBM, durin$ the course of perfor&ance revie1s conducted on thea$encies= operations, particularl% on the i&ple&entation of theirpro7ectsHactivities, includin$ expenses incurred in undertain$ the sa&e, haveidentified savin$s out of the :++ 6eneral Appropriations Act. !aid savin$scorrespond to co&pleted or discontinued pro7ects under certaindepart&entsHa$encies 1hich &a% be pooled, for the follo1in$>

+.+ to provide for ne1 activities 1hich have not been anticipated

durin$ preparation of the bud$et

+. to au$&ent additional re@uire&ents of on-$oin$ priorit% pro7ectsand

+.; to provide for deficiencies under the !pecial Purpose #unds, e.$.,PDA#, Cala&it% #und, Contin$ent #und

+.* to cover for the &odifications of the ori$inal allot&ent classallocation as a result of on-$oin$ priorit% pro7ects and i&ple&entationof ne1 activities

.: x x x x

.+ x x x

. x x x

"N 5?E 5GA5"N "# P""GED !AN6!

;.: t &a% be recalled that the President approved our re@uest for o&nibusauthorit% to pool savin$sHunutilied balances in #I :+: last Nove&ber ),:+:.

*.: t is understood that in the utiliation of the pooled savin$s, the DBM shallsecure the correspondin$ approvalHconfir&ation of the President.#urther&ore, it is assured that the proposed reali$n&ents shall be 1ithin theauthoried Expenditure level.

).: Relative thereto, 1e have identified so&e expenditure ite&s that &a% besourced fro& the said pooled appropriations in #I :+: that 1ill expire onDece&ber ;+, :++ and appropriations in #I :++ that &a% be declared assavin$s to fund additional expenditures.


31/70

).+ 5he :+: Continuin$ Appropriations 'pooled savin$s( is proposedto be spent for the pro7ects that 1e have identified to be i&&ediateactual disburse&ents considerin$ that this sa&e fund source 1illexpire on Dece&ber ;+, :++.

). 8ith respect to the proposed expenditure ite&s to be funded fro&

the #I :++ nreleased Appropriations, &ost of these are the sa&epro7ects for 1hich the DBM is directed b% the "ffice of the President,thru the Executive !ecretar%, to source funds.

.: A&on$ others, the follo1in$ are such proposed additional pro7ects thathave been chosen $iven their &ultiplier i&pact on econo&% andinfrastructure develop&ent, their beneficial effect on the poor, and theirtranslation into disburse&ents. Please note that 1e have classified the list ofproposed pro7ects as follo1s>

0.: x x x

#"R 5?E PRE!DEN5=! APPR"AG

/.: #ore$oin$ considered, &a% 1e respectfull% re@uest for the President=sapproval for the follo1in$>

/.+ 6rant of o&nibus authorit% to consolidate #I :++savin$sHunutilied balances and its reali$n&ent and

/. 5he proposed additional pro7ects identified for fundin$.

#or ?is Excellenc%=s consideration and approval.

'!$d.(

3H4 APPR"ED

3 4 D!APPR"ED

'!$d.( ?.E. BEN6N" !. AJN",

DEC +, :++

!ubstantiall% identical re@uests for authorit% to pool savin$s and to fund proposed pro7ects1ere contained in various other &e&oranda fro& !ec. Abad dated


32/70

NA5"NAG BD6E5 CRCGAR No. )*+


33/70

. 5o prescribe the reports and docu&ents to be used as bases on the1ithdra1al of said unobli$ated allot&ents and

.; 5o provide $uidelines in the utiliation or reallocation of the 1ithdra1nallot&ents.

;.: Covera$e

;.+ 5hese $uidelines shall cover the 1ithdra1al of unobli$ated allot&ents asof

Q Confidential and ntelli$ence #und


34/70

Q !avin$s fro& 5ravelin$, Co&&unication, 5ransportation andDeliver%, Repair and Maintenance, !upplies and Materialsand tilit% 1hich shall be used for the $rant of CollectiveNe$otiation A$ree&ent incentive benefit

Q !avin$s fro& &andator% expenditures 1hich can be

reali$ned onl% in the last @uarter after tain$ intoconsideration the a$enc%=s full %ear re@uire&ents, i.e.,Petroleu&, "il and Gubricants, 8ater, llu&ination, Po1er!ervices, 5elephone, other Co&&unication !ervices andRent.

*..; #orei$n-Assisted Pro7ects 'loan proceeds and pesocounterpart(

*..* !pecial Purpose #unds such as> E-6overn&ent #und,nternational Co&&it&ents #und, PAMANA, Priorit% Develop&ent

Assistance #und, Cala&it% #und, Bud$etar% !upport to 6"CCs and

Allocation to G6s, a&on$ others

*..) Juic Response #unds and

*.. Auto&atic Appropriations i.e., Retire&ent Gife nsurancePre&iu& and !pecial Accounts in the 6eneral #und.

).: 6uidelines

).+ National $overn&ent a$encies shall continue to undertae procure&entactivities not1ithstandin$ the i&ple&entation of the polic% of 1ithdra1al ofunobli$ated allot&ents until the end of the third @uarter, #I :+. Even

1ithout the allot&ents, the a$enc% shall proceed in undertain$ theprocure&ent processes 'i.e., procure&ent plannin$ up to the conduct ofbiddin$ but short of a1ardin$ of contract( pursuant to 6PPB Circular Nos. :-::/ and :+-:: and DBM Circular Getter No. :+:-.

). #or the purpose of deter&inin$ the a&ount of unobli$ated allot&ents thatshall be 1ithdra1n, all depart&entsHa$enciesHoperatin$ units '"s( shallsub&it to DBM not later than


35/70

obli$ations of P /::M then the


36/70

). 5he deadline for sub&ission of re@uestHs pertainin$ to these cate$oriesshall be until the end of the third @uarter i.e., !epte&ber ;:, :+. After saidcut-off date, the 1ithdra1n allot&ents shall be pooled and for& part of theoverall savin$s of the national $overn&ent.

).+: tiliation of the consolidated 1ithdra1n allot&ents for other priorit%

pro$ra&s and pro7ects as cited under ite& ).0.; of this Circular, shall besub7ect to approval of the President. Based on the approval of the President,DBM shall issue the !AR" to cover the approved priorit% expendituressub7ect to sub&ission b% the a$enc%H" concerned of the !BR andsupported 1ith P#P and MCP.

).++ t is understood that all releases to be &ade out of the 1ithdra1nallot&ents 'both :++ and :+ unobli$ated allot&ents( shall be 1ithin theapproved Expenditure Pro$ra& level of the national $overn&ent for thecurrent %ear. 5he !AR"s to be issued shall properl% disclose theappropriation source of the release to deter&ine the extent of allot&entvalidit%, as follo1s>

Q #or char$es under R.A. +:+*0 F allot&ents shall be valid up toDece&ber ;+, :+ and

Q #or char$es under R.A. +:+)) F allot&ents shall be valid up toDece&ber ;+, :+;.

).+ 5i&el% co&pliance 1ith the sub&ission of existin$ BARs and otherreportorial re@uire&ents is reiterated for &onitorin$ purposes.

.: Effectivit%

5his circular shall tae effect i&&ediatel%.

'!$d.( #G"RENC" B. ABAD!ecretar%

As can be seen, NBC No. )*+ specified that the unobli$ated allot&ents of all a$encies anddepart&ents as of


37/70

releasin$ unpro$ra&&ed funds and ';( appl%in$ the 2savin$s2 and unpro$ra&&ed funds toau$&ent existin$ PAPs or to support other priorit% PAPs.

c. DAP 1as not an appropriation&easure hence, no appropriationla1 1as re@uired to adopt or to

i&ple&ent it

Petitioners !%7uco, Guna, ille$as and P?GC"N!A state that Con$ress did not enact a la1to establish the DAP, or to authorie the disburse&ent and release of public funds toi&ple&ent the DAP. ille$as, P?GC"N!A, BP, Araullo, and C"RA6E observe that theappropriations funded under the DAP 1ere not included in the :++, :+ and :+; 6AAs.5o petitioners BP, Araullo, and C"RA6E, the DAP, bein$ actuall% an appropriation that setaside public funds for public use, should re@uire an enablin$ la1 for its validit%. ACC&aintains that the DAP, because it involved hu$e allocations that 1ere separate and distinctfro& the 6AAs, circu&vented and duplicated the 6AAs 1ithout con$ressional authoriationand control.

5he petitioners contend in unison that based on ho1 it 1as developed and i&ple&ented theDAP violated the &andate of !ection '+(, Article of the +/0 Constitution that 23n4o&one% shall be paid out of the 5reasur% except in pursuance of an appropriation &ade b%la1.2

5he "!6 posits, ho1ever, that no la1 1as necessar% for the adoption and i&ple&entation of the DAP because of its bein$ neither a fund nor an appropriation, but a pro$ra& or anad&inistrative s%ste& of prioritiin$ spendin$ and that the adoption of the DAP 1as b% virtueof the authorit% of the President as the Chief Executive to ensure that la1s 1ere faithfull%executed.

8e a$ree 1ith the "!6=s position.

5he DAP 1as a $overn&ent polic% or strate$% desi$ned to sti&ulate the econo&% throu$haccelerated spendin$. n the context of the DAP=s adoption and i&

Araullo v. Aquino.docx

Documents

Transcript of Araullo v. Aquino.docx