auraullio vs aquino.docx

7/25/2019 Auraullio vs Aquino.docx

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C A R P I O J D A u r a u l l i o v s A q u i n o | 1

G.R. No. 209287 July 1, 2014

MARIA CAROLINA P. ARAULLO, CHAIRPERSON, BAGONGALYANSANG MAABAYAN! JU"Y M. #AGUI$ALO,PRO%ESSOR, UNI&ERSI#Y O% #HE PHILIPPINES "ILIMAN,CO'CHAIRPERSON, PAGBABAGO! HENRI AHN,CONCERNE" CI#I(ENS MO&EMEN#! REP. LU( ILAGAN,GABRIELA $OMEN)S PAR#Y REPRESEN#A#I&E! REP.CARLOS ISAGANI (ARA#E, BAY AN MUNA PAR#Y'LIS#REPRESEN#A#I&E! RENA#O M. REYES, JR., SECRE#ARYGENERAL O% BAYAN! MANUEL . "AYRI#, CHAIRMAN, ANGAPA#IRAN PAR#Y! &ENCER MARI E. CRISOS#OMO,

CHAIRPERSON, ANABAYAN! &IC#OR &ILLANUE&A,CON&ENOR, YOU#H AC# NO$,Petitioners,vs.BENIGNO SIMEON C. A*UINO III, PRESI"EN# O% #HEREPUBLIC O% #HE PHILIPPINES! PA*UI#O N. OCHOA, JR.,E+ECU#I&E SECRE#ARY! AN" %LORENCIO B. ABA",SECRE#ARY O% #HE "EPAR#MEN# O% BU"GE# AN"MANAGEMEN#,Respondents.

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G.R. No. 2091-

AUGUS#O L. SY JUCO JR., P.".,Petitioner,vs.%LORENCIO B. ABA", IN HIS CAPACI#Y AS #HE SECRE#ARYO% "EPAR#MEN# O% BU"GE# AN" MANAGEMEN#! AN"HON. %RANLIN MAG#UNAO "RILON, IN HIS CAP A CI#YAS #HE SENA#E PRESI"EN# O% #HEPHILIPPINES,Respondents.

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G.R. No. 2091/

MANUELI#O R. LUNA,Petitioner,vs.SECRE#ARY %LORENCIO ABA", IN HIS O%%ICIAL CAPACI#YAS HEA" O% #HE "EPAR#MEN# O% BU"GE# AN"MANAGEMEN#! AN" E+ECU#I&E SECRE#ARY PA*UI#OOCHOA, IN HIS O%%ICIAL CAPACI#Y AS AL#ER EGO O% #HEPRESI"EN#,Respondents.

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G.R. No. 2091--

A##Y. JOSE MAL& AR &ILLEGAS, JR.,Petitioner,vs.

#HE HONORABLE E+ECU#I&E SECRE#ARY PA*UI#O N.OCHOA, JR.! AN" #HE SECRE#ARY O% BU"GE# AN"MANAGEMEN# %LORENCIO B. ABA",Respondents.

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G.R. No. 2091/4

PHILIPPINE CONS#I#U#ION ASSOCIA#ION PHILCONSA,REPRESEN#E" BY "EAN %ROILAN M. BACUNGAN,BENJAMIN E. "IONO AN" LEONOR M.BRIONES,Petitioners,vs."EPAR#MEN# O% BU"GE# AN" MANAGEMEN# AN"ORHON. %LORENCIO B. ABA",Respondents.

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G.R. No. 2092/0

IN#EGRA#E" BAR O% #HE PHILIPPINES IBP,Petitioner,

vs.SECRE#ARY %LORENCIO B. ABA" O% #HE "EPAR#MEN# O%BU"GE# AN" MANAGEMEN# "BM,Respondent.

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G.R. No. 209442

GRECO AN#ONIOUS BE"A B. BELGICA! BISHOP REUBENMABAN#E AN" RE&. JOSE L. GON(ALE(,Petitioners,vs.PRESI"EN# BENIGNO SIMEON C. A*UINO III, #HE SENA#EO% #HE PHILIPPINES, REPRESEN#E" BY SENA#EPRESI"EN# %RANLIN M. "RILON! #HE HOUSE O%REPRESEN#A#I&ES, REPRESEN#E" BY SPEAER%ELICIANO BELMON#E, JR.! #HE E+ECU#I&E O%%ICE,REPRESEN#E" BY E+ECU#I&E SECRE#ARY PA*UI#O N.OCHOA, JR.! #HE "EPAR#MEN# O% BU"GE# AN"MANAGEMEN#, REPRESEN#E" BY SECRE#ARY %LORENCIO

ABA"! #HE "EPAR#MEN# O% %INANCE, REPRESEN#E" BYSECRE#ARY CESAR &. PURISIMA! AN" #HE BUREAU O%#REASURY, REPRESEN#E" BY ROSALIA &. "ELEON,Respondents.

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G.R. No. 209-17

CON%E"ERA#ION %OR UNI#Y, RECOGNI#ION AN" A"& ANCEMEN# O% GO&ERNMEN# EMPLOYEES COURAGE,REPRESEN#E" BY I#S 1S# &ICE PRESI"EN#, SAN#IAGO"ASMARINAS, JR.! ROSALIN"A NAR#A#ES, %OR HERSEL%AN" AS NA#IONAL PRESI"EN# O% #HE CONSOLI"A#E"UNION O% EMPLOYEES NA#IONAL HOUSING AU#HORI#Y

CUENHA! MANUEL BACLAGON, %OR HIMSEL% AN" ASPRESI"EN# O% #HE SOCIAL $EL%ARE EMPLOYEESASSOCIA#ION O% #HE PHILIPPINES, "EPAR#MEN# O%SOCIAL $EL%ARE AN" "E&ELOPMEN# CEN#RAL O%%ICES$EAP'"S$" CO! AN#ONIA PASCUAL, %OR HERSEL%AN" AS NA#IONAL PRESI"EN# O% #HE "EPAR#MEN# O%AGRARIAN RE%ORM EMPLOYEES ASSOCIA#ION "AREA!ALBER# MAGALANG, %OR HIMSEL% AN" AS PRESI"EN# O%#HE EN&IRONMEN# AN" MANAGEMEN# BUREAUEMPLOYEES UNION EMBEU! AN" MARCIAL ARABA, %ORHIMSEL% AN" AS PRESI"EN# O% #HE APISANAN PARA

SA AGALINGAN NG MGA A$ ANI NG MM"AMM"A,Petitioners,vs.BENIGNO SIMEON C. A*UINO Ill, PRESI"EN# O% #HEREPUBLIC O% #HE PHILIPPINES! PA*UI#O OCHOA, JR.,E+ECU#I&E SECRE#ARY! AN" HON. %LORENCIO B. ABA",SECRE#ARY O% #HE "EPAR#MEN# O% BU"GE# AN"MANAGEMEN#,Respondents.

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G.R. No. 209-/9

&OLUN#EERS AGAINS# CRIME AN" CORRUP#ION &ACC,REPRESEN#E" BY "AN#E L. JIMENE(,Petitioner,vs.PA*UI#O N. OCHOA, E+ECU#I&E SECRE#ARY, AN"%LORENCIO B. ABA", SECRE#ARY O% #HE "EPAR#MEN#O% BU"GE# AN" MANAGEMEN#,Respondents.

D E C I S I O N

BERSAMIN, J.:

or resolution are t!e "onsolidated petitions assailin# t!e"onstitutionalit$ o% t!e Dis&urse'ent A""elerationPro#ra'(DAP), National *ud#et Cir"ular (N*C) No. +, andrelated issuan"es o% t!e Depart'ent o% *ud#et andana#e'ent (D*) i'ple'entin# t!e DAP.

At t!e "ore o% t!e "ontrovers$ is Se"tion /0() o% Arti"le 1I o% t!e023 Constitution, a provision o% t!e %unda'ental la4 t!at 5r'l$ordains t!at 67n8o 'one$ s!all &e paid out o% t!e 9reasur$ex"ept in pursuan"e o% an appropriation 'ade &$ la4.6 9!e tenorand "ontext o% t!e "!allen#es posed &$ t!e petitioners a#ainstt!e DAP indi"ate t!at t!e DAP "ontravened t!is provision &$allo4in# t!e Exe"utive to allo"ate pu&li" 'one$ pooled %ro'pro#ra''ed and unpro#ra''ed %unds o% its various a#en"ies

in t!e #uise o% t!e President exer"isin# !is "onstitutionalaut!orit$ under Se"tion /+(+) o% t!e 023 Constitution totrans%er %unds out o% savin#s to au#'ent t!e appropriations o%o:"es 4it!in t!e Exe"utive *ran"! o% t!e ;overn'ent. *ut t!e"!allen#es are %urt!er "o'pli"ated &$ t!e inter


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Constitution, 4!i"! #ranted to t!e President t!e aut!orit$ toau#'ent an ite' %or !is o:"e in t!e #eneral appropriations la4(/) Se"tion 0 (Aut!orit$ to Hse Savin#s %or Certain Purposes)and Se"tion @2 (Suspension o% Expenditure Appropriations),C!apter +, *oo 1I o% Exe"utive Order (EO) No. /0/(Ad'inistrative Code o% 023) and (@) t!e ;eneralAppropriations A"ts (;AAs) o% /?, /?/ and /?@, parti"ularl$t!eir provisions on t!e (a) use o% savin#s (&) 'eanin#s o%savin#s and au#'entation and (") priorit$ in t!e use o% savin#s.

As %or t!e use o% unpro#ra''ed %unds under t!e DAP, t!e D*"ited as le#al &ases t!e spe"ial provisions on unpro#ra''ed

%und "ontained in t!e ;AAs o% /?, /?/ and /[email protected]!e revelation o% Sen. Estrada and t!e rea"tions o% Se". A&adand t!e D* &rou#!t t!e DAP to t!e "ons"iousness o% t!eNation %or t!e 5rst ti'e, and 'ade t!is present "ontrovers$inevita&le. 9!at t!e issues a#ainst t!e DAP "a'e at a ti'e 4!ent!e Nation 4as still seet!in# in an#er over Con#ressional por&arrel 6an appropriation o% #overn'ent spendin# 'eant %orlo"aliFed pro


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C A R P I O J D A u r a u l l i o v s A q u i n o |

(G) Sixt! Eviden"e Pa"etG a print-out o% t!e Soli"itor ;eneralsvisual presentation %or t!e Januar$ /2, /? oral ar#u'ents.

On e&ruar$ +, /?,3t!e OS; %or4arded t!e Sevent! Eviden"ePa"et,24!i"! listed t!e sour"es o% %unds &rou#!t under t!eDAP, t!e uses o% su"! %unds per pro


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"ontroversiesQ6 9!e ter' 6a"tual "ontroversies6 a""ordin# tot!e Co''issioner s!ould re%er to questions 4!i"! are politi"al innature and, t!ere%ore, t!e "ourts s!ould not re%use to de"idet!ose politi"al questions. *ut do I understand it ri#!t t!at t!is isrestri"tive or onl$ an exa'ple> I no4 t!ere are "ases 4!i"! arenot a"tual $et t!e "ourt "an assu'e

R. CONCEPCION. 9!e Supre'e Court !as no


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C A R P I O J D A u r a u l l i o v s A q u i n o | -

&) Requisites %or t!e exer"ise o% t!epo4er o%


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C A R P I O J D A u r a u l l i o v s A q u i n o | /

suits, 9err v. Jordan !eld t!at 6t!e ri#!t o% a "itiFen and ataxpa$er to 'aintain an a"tion in "ourts to restrain t!e unla4%uluse o% pu&li" %unds to !is in


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o% a proposed ;AA. 9!e Details o% Sele"ted Pro#ra's andPro


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Do"u'ents(*ED) to outline t!eir plans and per%or'an"e tar#ets&$ la$in# do4n t!e p!$si"al and 5nan"ial plan, t!e 'ont!l$ "as!pro#ra', t!e esti'ate o% 'ont!l$ in"o'e, and t!e list o%o&li#ations t!at are not $et due and de'anda&le.

9!erea%ter, t!e D* prepares an Allot'ent Release Pro#ra'(ARP)and a Cas! Release Pro#ra' (CRP).9!e ARP sets a li'it %orallot'ents issued in #eneral and to a spe"i5" a#en"$. 9!e CRP5xes t!e 'ont!l$, quarterl$ and annual dis&urse'ent levels.

Allot'ents, 4!i"! aut!oriFe an a#en"$ to enter into o&li#ations,are issued &$ t!e D*. Allot'ents are lesser in s"ope t!anappropriations, in t!at t!e latter e'&ra"e t!e #eneral le#islative

aut!orit$ to spend. Allot'ents 'a$ &e released in t4o %or's t!rou#! a "o'pre!ensive A#en"$ *ud#et atrix (A*),0or,individuall$, &$ SARO.0+

Ar'ed 4it! eit!er t!e A* or t!e SARO, a#en"ies &e"o'eaut!oriFed to in"ur o&li#ations0Gon &e!al% o% t!e ;overn'ent inorder to i'ple'ent t!eir PAPs. O&li#ations 'a$ &e in"urred invarious 4a$s, lie !irin# o% personnel, enterin# into "ontra"ts %ort!e suppl$ o% #oods and servi"es, and usin# utilities.

In order to settle t!e o&li#ations in"urred &$ t!e a#en"ies, t!eD* issues a dis&urse'ent aut!orit$ so t!at "as! 'a$ &eallo"ated in pa$'ent o% t!e o&li#ations. A "as! or dis&urse'entaut!orit$ t!at is periodi"all$ issued is re%erred to as a Noti"e o%Cas! Allo"ation (NCA),034!i"! issuan"e is &ased upon ana#en"$s su&'ission o% its ont!l$ Cas! Pro#ra' and ot!errequired do"u'ents. 9!e NCA spe"i5es t!e 'axi'u' a'ount o%"as! t!at "an &e 4it!dra4n %ro' a #overn'ent servi"in# &an

%or t!e period indi"ated. Apart %ro' t!e NCA, t!e D* 'a$ issuea Non-Cas! Avail'ent Aut!orit$(NCAA) to aut!oriFe non-"as!dis&urse'ents, or a Cas! Dis&urse'ent Ceilin#(CDC) %ordepart'ents 4it! overseas operations to allo4 t!e use o%in"o'e "olle"ted &$ t!eir %orei#n posts %or t!eir operatin#require'ents.

A"tual dis&urse'ent or spendin# o% #overn'ent %undster'inates t!e *ud#et Exe"ution P!ase and is usuall$a""o'plis!ed t!rou#! t!e odi5ed Dis&urse'ent S"!e'e under4!i"! dis&urse'ents "!ar#ea&le a#ainst t!e National 9reasur$are "oursed t!rou#! t!e #overn'ent servi"in# &ans.

".. A""ounta&ilit$02

A""ounta&ilit$ is a si#ni5"ant p!ase o% t!e &ud#et "$"le &e"auseit ensures t!at t!e #overn'ent %unds !ave &een ee"tivel$ ande:"ientl$ utiliFed to a"!ieve t!e States so"io-e"ono'i" #oals. It

also allo4s t!e D* to assess t!e per%or'an"e o% a#en"iesdurin# t!e 5s"al $ear %or t!e purpose o% i'ple'entin# re%or'sand esta&lis!in# ne4 poli"ies.

An a#en"$s a""ounta&ilit$ 'a$ &e exa'ined and evaluatedt!rou#! () per%or'an"e tar#ets and out"o'es (/) &ud#eta""ounta&ilit$ reports (@) revie4 o% a#en"$ per%or'an"e and() audit "ondu"ted &$ t!e Co''ission on Audit(COA).

/.

Nature o% t!e DAP as a 5s"al plan

a. DAP 4as a pro#ra' desi#ned topro'ote e"ono'i" #ro4t!

Poli"$ is al4a$s a part o% ever$ &ud#et and 5s"al de"ision o% an$Ad'inistration.009!e national &ud#et t!e Exe"utive preparesand presents to Con#ress represents t!e Ad'inistrations6&lueprint %or pu&li" poli"$6 and ree"ts t!e ;overn'ents #oals

and strate#ies.

??

As su"!, t!e national &ud#et &e"o'es atan#i&le representation o% t!e pro#ra's o% t!e ;overn'ent in'onetar$ ter's, spe"i%$in# t!erein t!e PAPs and servi"es %or4!i"! spe"i5" a'ounts o% pu&li" %unds are proposed andallo"ated.?E'&odied in ever$ national &ud#et is #overn'entspendin#.?/

=!en !e assu'ed o:"e in t!e 'iddle o% /??, President Aquino'ade e:"ien"$ and transparen"$ in #overn'ent spendin# asi#ni5"ant %o"us o% !is Ad'inistration. Let, alt!ou#! su"! %o"usresulted in an i'proved 5s"al de5"it o% ?.+T in t!e #rossdo'esti" produ"t (;DP) %ro' Januar$ to Jul$ o% /?, it alsoun%ortunatel$ de"elerated #overn'ent pro


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et 3,32 L /? A#en"$*ud#et ite's t!at "an&e reali#ned 4it!in t!ea#en"$ to %und ne4 %astdis&ursin# pro


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"t /3? /3?

DOB irin# o% nurses andives /0 /0

ESDAB 9rainin# Pro#ra' inners!ip 4it! *PO industr$ot!er se"tors

,??

,??

DI;B Per%or'an"e C!allen#e(People E'po4ered'unit$ Drivenelop'ent 4it! DS=D andC)

/+?

+?

RB Co'pre!ensive Pea"eDevelop'ent Intervention 2,+0/ 2,+0/

DO9C-R9B Pur"!ase o%itional R9 "ars ,+?? -

;H Support und G,+?? G,+??

arious Ot!er o"al Pro


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In t!e event t!at a 'easure is ne"essar$ to %urt!er i'prove t!eoperational e:"ien"$ o% t!e #overn'ent, t!e President isaut!oriFed to suspend or stop %urt!er use o% %unds allotted %oran$ a#en"$ or expenditure aut!oriFed in t!e ;eneralAppropriations A"t. =it!dra4al and poolin# o% unutiliFedallot'ent releases "an &e ee"ted &$ D* &ased on aut!orit$ o%t!e President, as 'andated under Se"tions @2 and @0, C!apter+, *oo 1I o% EO /0/.

or t!e 5rst 5ve 'ont!s o% /?/, t!e National ;overn'ent !asnot 'et its spendin# tar#ets. In order to a""elerate spendin#and sustain t!e 5s"al tar#ets durin# t!e $ear, expenditure

'easures !ave to &e i'ple'ented to opti'iFe t!e utiliFation o%availa&le resour"es.

Depart'entsKa#en"ies !ave re#istered lo4 spendin# levels, inter's o% o&li#ations and dis&urse'ents per initial revie4 o% t!eir/?/ per%or'an"e. 9o en!an"e a#en"ies per%or'an"e, t!e D*"ondu"ts "ontinuous "onsultation 'eetin#s andKor send "all-upletters, requestin# t!e' to identi%$ slo4-'ovin#pro#ra'sKpro


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+. It is understood t!at all releases to &e 'ade out o% t!e4it!dra4n allot'ents (&ot! /? and /?/ uno&li#atedallot'ents) s!all &e 4it!in t!e approved Expenditure Pro#ra'level o% t!e national #overn'ent %or t!e "urrent $ear. 9!e SAROsto &e issued s!all properl$ dis"lose t!e appropriation sour"e o%t!e release to deter'ine t!e extent o% allot'ent validit$, as%ollo4sB

V or "!ar#es under R.A. ?3 allot'ents s!all &e valid up toDe"e'&er @, /?/ and

V or "!ar#es under R.A. ?++ allot'ents s!all &e valid up toDe"e'&er @, /?@.

+./ 9i'el$ "o'plian"e 4it! t!e su&'ission o% existin# *ARsand ot!er reportorial require'ents is reiterated %or 'onitorin#purposes.

G.? Ee"tivit$

9!is "ir"ular s!all tae ee"t i''ediatel$.

(S#d.) ORENCIO *. A*ADSe"retar$

As "an &e seen, N*C No. + spe"i5ed t!at t!e uno&li#atedallot'ents o% all a#en"ies and depart'ents as o% June @?, /?/t!at 4ere "!ar#ed a#ainst t!e "ontinuin# appropriations %or5s"al $ear /? and t!e /?/ ;AA (R.A. No. ?++) 4eresu&


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ad'inistrative poli"$. et t!ere &e dis"retion, &ut "!annel it anduse it to satis%$ t!e pro#ra's and priorities esta&lis!ed &$Con#ress.

In "ontrast, &$ allo4in# to t!e !eads o% o:"es so'e po4er totrans%er %unds 4it!in t!eir respe"tive o:"es, t!e Constitutionitsel% ensures t!e 5s"al autono'$ o% t!eir o:"es, and at t!esa'e ti'e 'aintains t!e separation o% po4ers a'on# t!e t!ree'ain &ran"!es o% t!e ;overn'ent. 9!e Court !as re"o#niFedt!is, and e'p!asiFed so in *en#Fon v. Drilon,@@viFB

9!e Judi"iar$, t!e Constitutional Co''issions, and t!eO'&uds'an 'ust !ave t!e independen"e and exi&ilit$ needed

in t!e dis"!ar#e o% t!eir "onstitutional duties. 9!e i'position o%restri"tions and "onstraints on t!e 'anner t!e independent"onstitutional o:"es allo"ate and utiliFe t!e %unds appropriated%or t!eir operations is anat!e'a to 5s"al autono'$ and violativenot onl$ o% t!e express 'andate o% t!e Constitution &utespe"iall$ as re#ards t!e Supre'e Court, o% t!e independen"eand separation o% po4ers upon 4!i"! t!e entire %a&ri" o% our"onstitutional s$ste' is &ased.

In t!e "ase o% t!e President, t!e po4er to trans%er %unds %ro'one ite' to anot!er 4it!in t!e Exe"utive !as not &een t!e 'ereos!oot o% esta&lis!ed usa#e, &ut !as e'anated %ro' la4 itsel%.It !as existed sin"e t!e ti'e o% t!e A'eri"an ;overnors-;eneral.@A"t No. 0?/ (An A"t aut!oriFin# t!e ;overnor-;eneral to dire"t an$ unexpended &alan"es o% appropriations &ereturned to t!e #eneral %und o% t!e Insular 9reasur$ and totrans%er %ro' t!e #eneral %und 'one$s 4!i"! !ave &een

returned t!ereto), passed on a$ 2, 0?0 &$ t!e irstP!ilippine e#islature,@+4as t!e 5rst ena&lin# la4 t!at #rantedstatutor$ aut!orit$ to t!e President to trans%er %unds. 9!eaut!orit$ 4as 4it!out an$ li'itation, %or t!e A"t expli"itl$e'po4ered t!e ;overnor-;eneral to trans%er an$ unexpended&alan"e o% appropriations %or an$ &ureau or o:"e to anot!er,and to spend su"! &alan"e as i% it !ad ori#inall$ &eenappropriated %or t!at &ureau or o:"e.

ro' 0G until 0/?, t!e appropriations la4s set a "ap on t!ea'ounts o% %unds t!at "ould &e trans%erred, t!ere&$ li'itin# t!epo4er to trans%er %unds. Onl$ ?T o% t!e a'ounts appropriated%or "ontin#ent or 'is"ellaneous expenses "ould &e trans%erredto a &ureau or o:"e, and t!e trans%erred %unds 4ere to &e usedto "over de5"ien"ies in t!e appropriations also %or 'is"ellaneousexpenses o% said &ureau or o:"e.

In 0/, t!e "eilin# on t!e a'ounts o% %unds to &e trans%erred

%ro' ite's under 'is"ellaneous expenses to an$ ot!er ite' o% a"ertain &ureau or o:"e 4as re'oved.

Durin# t!e Co''on4ealt! period, t!e po4er o% t!e President totrans%er %unds "ontinued to &e #overned &$ t!e ;AAs despitet!e ena"t'ent o% t!e Constitution in 0@+. It is nota&le t!at t!e0@+ Constitution did not in"lude a provision on t!e po4er totrans%er %unds. At an$ rate, a s!i%t in t!e extent o% t!ePresidents po4er to trans%er %unds 4as a#ain experien"eddurin# t!is era, 4it! t!e President &ein# #iven 'ore exi&ilit$ ini'ple'entin# t!e &ud#et. 9!e ;AAs provided t!at t!e po4er totrans%er all or portions o% t!e appropriations in t!e Exe"utiveDepart'ent "ould &e 'ade in t!e 6interest o% t!e pu&li", as t!ePresident 'a$ deter'ine.6@G

In its ti'e, t!e 03 Constitutional Convention 4anted to "urtailt!e Presidents see'in#l$ un&ounded dis"retion in trans%errin#%unds.@3Its Co''ittee on t!e *ud#et and Appropriationproposed to pro!i&it t!e trans%er o% %unds a'on# t!e separate&ran"!es o% t!e ;overn'ent and t!e independent "onstitutional&odies, &ut to allo4 instead t!eir respe"tive !eads to au#'entite's o% appropriations %ro' savin#s in t!eir respe"tive &ud#etsunder "ertain li'itations.@29!e "lear intention o% t!eConvention 4as to %urt!er restri"t, not to li&eraliFe, t!e po4er totrans%er appropriations.@09!us, t!e Co''ittee on t!e *ud#etand Appropriation initiall$ "onsidered settin# strin#entli'itations on t!e po4er to au#'ent, and su##ested t!at t!eau#'entation o% an ite' o% appropriation "ould &e 'ade 6&$ not'ore t!an ten per"ent i% t!e ori#inal ite' o% appropriation to &eau#'ented does not ex"eed one 'illion pesos, or &$ not 'oret!an 5ve per"ent i% t!e ori#inal ite' o% appropriation to &eau#'ented ex"eeds one 'illion pesos.6?*ut t4o 'e'&ers o%t!e Co''ittee o&


14/23


=!en t!e statute itsel% enu'erates t!e ex"eptions to t!eappli"ation o% t!e #eneral rule, t!e ex"eptions are stri"tl$ &utreasona&l$ "onstrued. 9!e ex"eptions extend onl$ as %ar as t!eirlan#ua#e %airl$ 4arrants, and all dou&ts s!ould &e resolved in%avor o% t!e #eneral provision rat!er t!an t!e ex"eptions. =!eret!e #eneral rule is esta&lis!ed &$ a statute 4it! ex"eptions,none &ut t!e ena"tin# aut!orit$ "an "urtail t!e %or'er. Not event!e "ourts 'a$ add to t!e latter &$ i'pli"ation, and it is a rulet!at an express ex"eption ex"ludes all ot!ers, alt!ou#! it isal4a$s proper in deter'inin# t!e appli"a&ilit$ o% t!e rule toinquire 4!et!er, in a parti"ular "ase, it a""ords 4it! reason and


15/23

C A R P I O J D A u r a u l l i o v s A q u i n o | 1-

indu&ita&le t!at t!e po4er to au#'ent 4as to &e used onl$4!en t!e purpose %or 4!i"! t!e %unds !ad &een allo"ated 4erealread$ satis5ed, or t!e need %or su"! %unds !ad "eased to exist,%or onl$ t!en "ould savin#s &e properl$ realiFed. 9!isinterpretation prevents t!e Exe"utive %ro' undul$ trans#ressin#Con#ress po4er o% t!e purse.

9!e de5nition o% 6savin#s6 in t!e ;AAs, parti"ularl$ %or /?,/?/ and /?@, ree"ted t!is interpretation and 'ade itoperational, viFB

Savin#s re%er to portions or &alan"es o% an$ pro#ra''edappropriation in t!is A"t %ree %ro' an$ o&li#ation or

en"u'&ran"e 4!i"! areB (i) still availa&le a%ter t!e "o'pletion or5nal dis"ontinuan"e or a&andon'ent o% t!e 4or, a"tivit$ orpurpose %or 4!i"! t!e appropriation is aut!oriFed (ii) %ro'appropriations &alan"es arisin# %ro' unpaid "o'pensation andrelated "osts pertainin# to va"ant positions and leaves o%a&sen"e 4it!out pa$ and (iii) %ro' appropriations &alan"esrealiFed %ro' t!e i'ple'entation o% 'easures resultin# ini'proved s$ste's and e:"ien"ies and t!us ena&led a#en"ies to'eet and deliver t!e required or planned tar#ets, pro#ra's andservi"es approved in t!is A"t at a lesser "ost.

9!e t!ree instan"es listed in t!e ;AAs a%orequoted de5nition4ere a sure indi"ation t!at savin#s "ould &e #enerated onl$upon t!e purpose o% t!e appropriation &ein# %ul5lled, or upont!e need %or t!e appropriation &ein# no lon#er existent.

9!e p!rase 6%ree %ro' an$ o&li#ation or en"u'&ran"e6 in t!ede5nition o% savin#s in t!e ;AAs "onve$ed t!e notion t!at t!e

appropriation 4as at t!at sta#e 4!en t!e appropriation 4asalread$ o&li#ated and t!e appropriation 4as alread$ released.9!is interpretation 4as rein%or"ed &$ t!e enu'eration o% t!et!ree instan"es %or savin#s to arise, 4!i"! s!o4ed t!at t!eappropriation re%erred to !ad rea"!ed t!e a#en"$ level. It "ouldnot &e ot!er4ise, "onsiderin# t!at onl$ 4!en t!e appropriation!ad rea"!ed t!e a#en"$ level "ould it &e deter'ined 4!et!er(a) t!e PAP %or 4!i"! t!e appropriation !ad &een aut!oriFed 4as"o'pleted, 5nall$ dis"ontinued, or a&andoned or (&) t!ere 4ereva"ant positions and leaves o% a&sen"e 4it!out pa$ or (") t!erequired or planned tar#ets, pro#ra's and servi"es 4ererealiFed at a lesser "ost &e"ause o% t!e i'ple'entation o%'easures resultin# in i'proved s$ste's and e:"ien"ies.

9!e D* de"lares t!at part o% t!e savin#s &rou#!t under t!eDAP "a'e %ro' 6poolin# o% unreleased appropriations su"! asunreleased Personnel Servi"es appropriations 4!i"! 4ill lapse at

t!e end o% t!e $ear, unreleased appropriations o% slo4 'ovin#pro


16/23

C A R P I O J D A u r a u l l i o v s A q u i n o | 1/

period extendin# to one 5s"al $ear a%ter t!e end o% t!e $ear in4!i"! su"! ite's 4ere appropriatedB PRO1IDED, 9!atappropriations %or OOE and "apital outla$s under R.A. No. 003?s!all &e 'ade availa&le up to t!e end o% L /?B PRO1IDED,HR9ER, 9!at a report on t!ese releases and o&li#ations s!all&e su&'itted to t!e Senate Co''ittee on inan"e and t!eouse Co''ittee on Appropriations.

and Se"tion G@ ;eneral Provisions o% t!e /?/ ;AA, viFB

Se"tion G@. Availa&ilit$ o% Appropriations. W Appropriations %orOOE and "apital outla$s aut!oriFed in t!is A"t s!all &eavaila&le %or release and o&li#ation %or t!e purpose spe"i5ed,

and under t!e sa'e spe"ial provisions appli"a&le t!ereto, %or aperiod extendin# to one 5s"al $ear a%ter t!e end o% t!e $ear in4!i"! su"! ite's 4ere appropriatedB PRO1IDED, 9!at a reporton t!ese releases and o&li#ations s!all &e su&'itted to t!eSenate Co''ittee on inan"e and t!e ouse Co''ittee onAppropriations, eit!er in printed %or' or &$ 4a$ o% ele"troni"do"u'ent.+

9!us, anot!er alle#ed area o% "onstitutional in5r'it$ 4as t!att!e DAP and its relevant issuan"es s!ortened t!e period o%availa&ilit$ o% t!e appropriations %or OOE and "apital outla$s.

Con#ress provided a one-$ear period o% availa&ilit$ o% t!e %unds%or all allot'ent "lasses in t!e /?@ ;AA (R.A. No. ?@+/), to4itB

Se"tion G@. Availa&ilit$ o% Appropriations.W All appropriationsaut!oriFed in t!is A"t s!all &e availa&le %or release ando&li#ation %or t!e purposes spe"i5ed, and under t!e sa'espe"ial provisions appli"a&le t!ereto, until t!e end o% L /?@BPRO1IDED, 9!at a report on t!ese releases and o&li#ations s!all&e su&'itted to t!e Senate Co''ittee on inan"e and ouseCo''ittee on Appropriations, eit!er in printed %or' or &$ 4a$o% ele"troni" do"u'ent.

Let, in !is 'e'orandu' %or t!e President dated a$ /?, /?@,Se". A&ad sou#!t o'ni&us aut!orit$ to "onsolidate savin#s andunutiliFed &alan"es to %und t!e DAP on a quarterl$ &asis, viFB

3.? I% t!e level o% 5nan"ial per%or'an"e o% so'e depart'ent 4illre#ister &elo4 pro#ra', even 4it! t!e availa&ilit$ o% %unds att!eir disposal, t!e tar#eted o&li#ationsKdis&urse'ents %or ea"!quarter 4ill not &e 'et. It is i'portant to note t!at t!ese %unds4ill lapse at t!e end o% t!e 5s"al $ear i% t!ese re'ainuno&li#ated.

2.? 9o 'axi'iFe t!e use o% t!e availa&le allot'ent, all

uno&li#ated &alan"es at t!e end o% ever$ quarter, &ot! %or"ontinuin# and "urrent allot'ents s!all &e 4it!dra4n andpooled to %und %ast 'ovin# pro#ra'sKpro


17/23


Se"tion @2. Suspension o% Expenditure o% Appropriations.- Ex"eptas ot!er4ise provided in t!e ;eneral Appropriations A"t and4!enever in !is


18/23


&uildin#inpriorit$areasidenti5edasstrate#i"toNationalDevelop'ent

Aside %ro' t!is trans%er under t!e DAP to t!e DREA pro

Durin# t!e oral ar#u'ents on Januar$ /2, /?, Se". A&adad'itted 'ain# so'e "ross-&order au#'entations, to 4itB

JHS9ICE *ERSAINB

Alri#!t, t!e 4!ole ti'e t!at $ou !ave &een Se"retar$ o%Depart'ent o% *ud#et and ana#e'ent, did t!e Exe"utiveDepart'ent ever redire"t an$ part o% savin#s o% t!e National;overn'ent under $our "ontrol "ross &order to anot!erdepart'ent>

SECRE9ARL A*ADB

=ell, in t!e e'os t!at 4e su&'itted to $ou, su"! an instan"e,Lour onor

JHS9ICE *ERSAINB

Can $ou tell 'e t4o instan"es> I dont re"all !avin# read $our'aterial.

SECRE9ARL A*ADB

=ell, t!e 5rst instan"e !ad to do 4it! a request %ro' t!e ouseo% Representatives. 9!e$ started &uildin# t!eir e-li&rar$ in /??and t!e$ !ad a &ud#et %or a&out /?3 illion &ut t!e$ la" a&out@ illion to "o'plete its /+? illion require'ents. Prior to t!at,t!e COA, in an audit o&servation in%or'ed t!e Speaer t!at t!e$!ad to "ontinue 4it! t!at "onstru"tion ot!er4ise t!e 4!ole&uildin#, as 4ell as t!e equip'ents t!erein 'a$ suer %ro'serious deterioration. And at t!at ti'e, sin"e t!e &ud#et o% t!eouse o% Representatives 4as not enou#! to "o'plete /+?illion, t!e$ 4rote to t!e President requestin# %or anau#'entation o% t!at parti"ular ite', 4!i"! 4as #ranted, Louronor. 9!e se"ond instan"e in t!e e'os is a request %ro' t!eCo''ission on Audit. At t!e ti'e t!e$ 4ere pus!in# ver$stron#l$ t!e #ood #overnan"e pro#ra's o% t!e #overn'ent andt!ere%ore, part o% t!at is a require'ent to "ondu"t audits as 4ellas revie4 5nan"ial reports o% 'an$ a#en"ies. And in t!e

per%or'an"e o% t!at %un"tion, t!e Co''ission on Audit neededin%or'ation te"!nolo#$ equip'ent as 4ell as !ire "onsultantsand liti#ators to !elp t!e' 4it! t!eir audit 4or and %or t!att!e$ requested %unds %ro' t!e Exe"utive and t!e President sa4t!at it 4as i'portant %or t!e Co''ission to &e provided 4it!t!ose I9 equip'ents and liti#ators and "onsultants and t!erequest 4as #ranted, Lour onor.

JHS9ICE *ERSAINB

9!ese "ross &order exa'ples, "ross &order au#'entations 4erenot supported &$ appropriationsQ

SECRE9ARL A*ADB
http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt170http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt170http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt171http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt171http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt172http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt172http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt172http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt173http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt174http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt174http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt174http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt175http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt176http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt176http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt177http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt178http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt178http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt179http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt179http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt179http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt180http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt180http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt181http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt182http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt182http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt182http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt170http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt171http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt172http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt173http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt174http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt175http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt176http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt177http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt178http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt179http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt180http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt181http://www.lawphil.net/judjuris/juri2014/jul2014/gr_209287_2014.html#fnt182


19/23


9!e$ 4ere, 4e 4ere au#'entin# existin# ite's 4it!in t!eirQ(interrupted)

JHS9ICE *ERSAINB

No, appropriations &e%ore $ou au#'ented &e"ause t!is is a "ross&order and t!e tenor or text o% t!e Constitution is quite "lear as%ar as I a' "on"erned. It sa$s !ere, 69!e po4er to au#'ent 'a$onl$ &e 'ade to in"rease an$ ite' in t!e ;eneral Appropriationsa4 %or t!eir respe"tive o:"es.6 Did $ou not %eel "onstri"ted &$t!is provision>

SECRE9ARL A*ADB

=ell, as t!e Constitution provides, t!e pro!i&ition 4e %elt 4as ont!e trans%er o% appropriations, Lour onor. =!at 4e t!ou#!t 4edid 4as to trans%er savin#s 4!i"! 4as needed &$ t!eCo''ission to address de5"ien"$ in an existin# ite' in &ot! t!eCo''ission as 4ell as in t!e ouse o% Representatives t!ats!o4 4e sa4Q(interrupted)

JHS9ICE *ERSAINB

So $our position as Se"retar$ o% *ud#et is t!at $ou "ould dot!at>

SECRE9ARL A*ADB

In an extre'e instan"es &e"auseQ(interrupted)

JHS9ICE *ERSAINB

No, no, in all instan"es, extre'e or not extre'e, $ou "ould dot!at, t!ats $our %eelin#.

SECRE9ARL A*ADB

=ell, in t!at parti"ular situation 4!en t!e request 4as 'ade &$t!e Co''ission and t!e ouse o% Representatives, 4e %elt t!at4e needed to respond &e"ause 4e %eltQ(interrupted).2@

9!e re"ords s!o4, indeed, t!at %unds a'ountin#to P@,3??,???.?? and P/+?,???,???.?? 4ere trans%erredunder t!e DAP respe"tivel$ to t!e COA2and t!e ouse o%Representatives.2+9!ose trans%ers o% %unds, 4!i"! "onstituted"ross-&order au#'entations %or &ein# %ro' t!e Exe"utive to t!eCOA and t!e ouse o% Representatives, are #rap!ed as%ollo4sB2G

HRPOSEDA9EREEASED

AOHN9(In t!ousand pesos)

ReserveI'posed

In%rastru"ture Pro#ra' and !irin# o% additionalti#ation experts

KK

o'pletion o% t!e "onstru"tion o% t!e e#islativei&rar$ and Ar"!ives *uildin#KCon#ressional e-&rar$

?3K/@K/ /?3,?@(Savin#s o% OR)

9!e respondents %urt!er stated in t!eir 'e'orandu' t!at t!ePresident 6'ade availa&le6 to t!e 6Co''ission on Ele"tions t!esavin#s o% !is depart'ent upon 7its8 request %or %undsQ6239!is4as anot!er instan"e o% a "ross-&order au#'entation.

9!e respondents

ONORA*E ENDOUAB

I% t!ere is ti'e to do t!at, I 4ould sa$ $es.

JHS9ICE EONENBSo, t!e t!eor$ o% aid rat!er t!an au#'entation applies in extra-ordinar$ situation>

ONORA*E ENDOUAB

1er$ extra-ordinar$ situations.

JHS9ICE EONENB

*ut Counsel, t!is 4ould &e ne4 do"trine, in "ase>

ONORA*E ENDOUAB

Les, i% Lour onor please.0?

Re#ardless o% t!e variant "!ara"teriFations o% t!e "ross-&ordertrans%ers o% %unds, t!e plain text o% Se"tion /+(+), supra,disallo4in# "ross &order trans%ers 4as diso&e$ed. Cross-&ordertrans%ers, 4!et!er as au#'entation, or as aid, 4ere pro!i&itedunder Se"tion /+(+), supra.

.Sour"in# t!e DAP %ro' unpro#ra''ed%unds despite t!e ori#inal revenue tar#etsnot !avin# &een ex"eeded 4as invalid

undin# under t!e DAP 4ere also sour"ed %ro' unpro#ra''ed%unds provided in t!e ;AAs %or /?, /?/,and /?@. 9!erespondents stress, !o4ever, t!at t!e unpro#ra''ed %unds4ere not &rou#!t under t!e DAP as savin#s, &ut as separatesour"es o% %unds and t!at, "onsequentl$, t!e release and use o%unpro#ra''ed %unds 4ere not su&


20/23


revenue "olle"tions ex"eeded t!e ori#inal revenue tar#etsproposed in t!e *ESs su&'itted &$ t!e President to Con#ress(/) ne4 revenues 4ere "olle"ted or realiFed %ro' sour"es notori#inall$ "onsidered in t!e *ESs or(@) ne4l$-approved loans%or %orei#n assisted pro


21/23


9!is is to "erti%$ t!at t!e a"tual dividend "olle"tions re'itted tot!e National ;overn'ent %or t!e period Januar$ to a$ /?@a'ounted to P/.@2 &illion "o'pared to t!e %ull $ear pro#ra'o% P?.?02&illion %or /?@.

oreover, t!e National ;overn'ent a""ounted %or t!e sale o%t!e ri#!t to &uild and operate t!e NAIA express4a$ a'ountin#to P.? &illion in June /[email protected]

9!e "erti5"ations ree"ted t!at &$ "olle"tin# dividendsa'ountin# to P/@.2 &illion in /?, P0.0 &illion in /?/,and P/.@2 &illion in /?@ t!e *9r !ad ex"eeded onl$ t!e P+.+&illion in tar#et revenues in t!e %or' o% dividends %ro' sto"s in

ea"! o% /? and /?/, and onl$ t!e P? &illion in tar#etrevenues in t!e %or' o% dividends %ro' sto"s in /?@.

o4ever, t!e require'ent t!at revenue "olle"tions ex"eed t!eori#inal revenue tar#ets 4as to &e "onstrued in li#!t o% t!epurpose %or 4!i"! t!e unpro#ra''ed %unds 4ere in"orporatedin t!e ;AAs as stand&$ appropriations to support additionalexpenditures %or "ertain priorit$ PAPs s!ould t!e revenue"olle"tions ex"eed t!e resour"e tar#ets assu'ed in t!e &ud#etor 4!en additional %orei#n pro

9!e need is ans4ered &$ t!e do"trine o% operative %a"t. 9!edo"trine, de5nitel$ not a novel one, !as &een ex!austivel$explained in De A#&a$ani v. P!ilippine National *anB/?3

9!e de"ision no4 on appeal ree"ts t!e ort!odox vie4 t!at anun"onstitutional a"t, %or t!at 'atter an exe"utive order or a'uni"ipal ordinan"e lie4ise suerin# %ro' t!at in5r'it$,"annot &e t!e sour"e o% an$ le#al ri#!ts or duties. Nor "an it


22/23


Code puts itB X=!en t!e "ourts de"lare a la4 to &e in"onsistent4it! t!e Constitution, t!e %or'er s!all &e void and t!e latters!all #overn. Ad'inistrative or exe"utive a"ts, orders andre#ulations s!all &e valid onl$ 4!en t!e$ are not "ontrar$ to t!ela4s o% t!e Constitution. It is understanda&le 4!$ it s!ould &eso, t!e Constitution &ein# supre'e and para'ount. An$le#islative or exe"utive a"t "ontrar$ to its ter's "annot survive.

Su"! a vie4 !as support in lo#i" and possesses t!e 'erit o%si'pli"it$. It 'a$ not !o4ever &e su:"ientl$ realisti". It does notad'it o% dou&t t!at prior to t!e de"laration o% nullit$ su"!"!allen#ed le#islative or exe"utive a"t 'ust !ave &een in %or"e

and !ad to &e "o'plied 4it!. 9!is is so as until a%ter t!e


23/23


As alread$ 'entioned, t!e i'ple'entation o% t!e DAP resultedinto t!e use o% savin#s pooled &$ t!e Exe"utive to 5nan"e t!ePAPs t!at 4ere not "overed in t!e ;AA, or t!at did not !aveproper appropriation "overs, as 4ell as to au#'ent ite'spertainin# to ot!er depart'ents o% t!e ;overn'ent in "learviolation o% t!e Constitution. 9o de"lare t!e i'ple'entation o%t!e DAP un"onstitutional 4it!out re"o#niFin# t!at its priori'ple'entation "onstituted an operative %a"t t!at produ"ed"onsequen"es in t!e real as 4ell as

auraullio vs aquino.docx

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