Province of Batangas v. Romulo.rtf

8/14/2019 Province of Batangas v. Romulo.rtf

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Republic of the Philippines

SUPREME COURT

Manila

EN BANC

G.R. No. 15!!" Ma# !$ %%"

T&E PRO'(NCE O) BATANGAS$ *ep*esente+ b# its Go,e*no*$ &ERM(-ANO (.

MANANAS$ petitione*$

,s.

&ON. A-BERTO G. ROMU-O$ E/ecuti,e Sec*eta*# an+ Chai*0an of the

O,e*siht Co00ittee on e,olution2 &ON. EM(-(A BONCO(N$ Sec*eta*#$

epa*t0ent of Bu+et an+ Manae0ent2 &ON. 3OSE . -(NA$ 3R.$ Sec*eta*#$

epa*t0ent of (nte*io* an+ -ocal Go,e*n0ent$ *espon+ents.

E C ( S ( O N

CA--E3O$ SR.$ 3.4

The P*o,ince of Batanas$ *ep*esente+ b# its Go,e*no*$ &e*0ilan+o (.

Man+anas$ file+ the p*esent petition fo* ce*tio*a*i$ p*ohibition an+ 0an+a0us

un+e* Rule 5 of the Rules of Cou*t$ as a0en+e+$ to +ecla*e as

unconstitutional an+ ,oi+ ce*tain p*o,isos containe+ in the Gene*al

App*op*iations Acts 6GAA7 of 1888$ %%% an+ %%1$ insofa* as the# unifo*0l#

ea*0a*9e+ fo* each co**espon+in #ea* the a0ount of fi,e billion pesos6P5$%%%$%%%$%%%.%%7 of the (nte*nal Re,enue Allot0ent 6(RA7 fo* the -ocal

Go,e*n0ent Se*,ice E:uali;ation )un+ 6-GSE)7 an+ i0pose+ con+itions fo*

the *elease the*eof.

Na0e+ as *espon+ents a*e E/ecuti,e Sec*eta*# Albe*to G. Ro0ulo$ in his



capacit# as Chai*0an of the O,e*siht Co00ittee on e,olution$ Sec*eta*#

E0ilia Bonco+in of the epa*t0ent of Bu+et an+ Manae0ent 6BM7 an+

Sec*eta*# 3ose -ina of the epa*t0ent of (nte*io* an+ -ocal Go,e*n0ent

6(-G7.

Bac9*oun+

On ece0be* !$ 188<$ then P*esi+ent 3oseph E=e*cito Est*a+a issue+

E/ecuti,e O*+e* 6E.O.7 No. "< entitle+ >ESTAB-(S&(NG A PROGRAM )OR

E'O-UT(ON A3USTMENT AN E?UA-(@AT(ON.> The p*o*a0 as

establishe+ to >facilitate the p*ocess of enhancin the capacities of local

o,e*n0ent units 6-GUs7 in the +ischa*e of the functions an+ se*,ices

+e,ol,e+ to the0 b# the National Go,e*n0ent Aencies conce*ne+ pu*suant

to the -ocal Go,e*n0ent Co+e.>1 The O,e*siht Co00ittee 6*efe**e+ to as

the e,olution Co00ittee in E.O. No. "<7 constitute+ un+e* Section 56b7 of

Republic Act No. !1% 6The -ocal Go,e*n0ent Co+e of 18817 has been tas9e+

to fo*0ulate an+ issue the app*op*iate *ules an+ *eulations necessa*# fo* its

effecti,e i0ple0entation. )u*the*$ to a++*ess the fun+in sho*tfalls of

functions an+ se*,ices +e,ol,e+ to the -GUs an+ othe* fun+in *e:ui*e0ents

of the p*o*a0$ the >e,olution A+=ust0ent an+ E:uali;ation )un+> as

c*eate+. )o* 188<$ the BM as +i*ecte+ to set asi+e an a0ount to be

+ete*0ine+ b# the O,e*siht Co00ittee base+ on the +e,olution status

app*aisal su*,e#s un+e*ta9en b# the (-G." The initial fun+ as to be

sou*ce+ f*o0 the a,ailable sa,ins of the national o,e*n0ent fo* C 188<.5)o* 1888 an+ the succee+in #ea*s$ the co**espon+in a0ount *e:ui*e+ to

sustain the p*o*a0 as to be inco*po*ate+ in the annual GAA. The

O,e*siht Co00ittee has been autho*i;e+ to issue the i0ple0entin *ules

an+ *eulations o,e*nin the e:uitable allocation an+ +ist*ibution of sai+

fun+ to the -GUs.!

The -GSE) in the GAA of 1888

(n Republic Act No. <!"5$ othe*ise 9non as the GAA of 1888$ the p*o*a0

as *ena0e+ as the -OCA- GO'ERNMENT SER'(CE E?UA-(@AT(ON )UN

6-GSE)7. Un+e* sai+ app*op*iations la$ the a0ount of P8$!<%$%%%$%%% as

allotte+ as the sha*e of the -GUs in the inte*nal *e,enue ta/es. (te0 No. 1$

Special P*o,isions$ Title DDD'( A. (nte*nal Re,enue Allot0ent of Rep. Act No.

<!"5 containe+ the folloin p*o,iso4



... PRO'(E$ That the a0ount of )('E B(--(ON PESOS 6P5$%%%$%%%$%%%7 shall

be ea*0a*9e+ fo* the -ocal Go,e*n0ent Se*,ice E:uali;ation )un+ fo* the

fun+in *e:ui*e0ents of p*o=ects an+ acti,ities a*isin f*o0 the full an+

efficient i0ple0entation of +e,ol,e+ functions an+ se*,ices of localo,e*n0ent units pu*suant to R.A. No. !1%$ othe*ise 9non as the -ocal

Go,e*n0ent Co+e of 18814 PRO'(E$ )URT&ER$ That such a0ount shall be

*elease+ to the local o,e*n0ent units sub=ect to the i0ple0entin *ules an+

*eulations$ inclu+in such 0echanis0s an+ ui+elines fo* the e:uitable

allocations an+ +ist*ibution of sai+ fun+ a0on local o,e*n0ent units

sub=ect to the ui+elines that 0a# be p*esc*ibe+ b# the O,e*siht Co00ittee

on e,olution as constitute+ pu*suant to Boo9 ('$ Title ((($ Section 56b7 of

R.A. No. !1%. The (nte*nal Re,enue Allot0ent shall be *elease+ +i*ectl# b#

the epa*t0ent of Bu+et an+ Manae0ent to the -ocal Go,e*n0ent Units

conce*ne+.

On 3ul# <$ 1888$ the O,e*siht Co00ittee 6ith then E/ecuti,e Sec*eta*#

Ronal+o B. @a0o*a as Chai*0an7 passe+ Resolution Nos. OCF88F%%$ OCF

88F%%5 an+ OCF88F%% entitle+ as follos4

OCF88F%%5

RESO-UT(ON AOPT(NG T&E A--OCAT(ON SC&EME )OR T&E PhP5 B(--(ON C

1888 -OCA- GO'ERNMENT SER'(CE E?UA-(@AT(ON )UN 6-GSE)7 AN

RE?UEST(NG &(S EDCE--ENC PRES(ENT 3OSEP& E3ERC(TO ESTRAA TO

APPRO'E SA( A--OCAT(ON SC&EME.

OCF88F%%

RESO-UT(ON AOPT(NG T&E A--OCAT(ON SC&EME )OR T&E PhP".% B(--(ON

O) T&E 1888 -OCA- GO'ERNMENT SER'(CE E?UA-(@AT(ON )UN AN (TS

CONCOM(TANT GENERA- )RAMEORH$ (MP-EMENT(NG GU(E-(NES AN

MEC&AN(CS )OR (TS (MP-EMENTAT(ON AN RE-EASE$ AS PROMU-GATE B

T&E O'ERS(G&T COMM(TTEE ON E'O-UT(ON.



OCF88F%%

RESO-UT(ON RE?UEST(NG &(S EDCE--ENC PRES(ENT 3OSEP& E3ERC(TO

ESTRAA TO APPRO'E T&E RE?UEST O) T&E O'ERS(G&T COMM(TTEE ON

E'O-UT(ON TO SET AS(E TENT PERCENT 6%I7 O) T&E -OCA-

GO'ERNMENT SER'(CE E?UA-(@AT(ON )UN 6-GSE)7 )OR -OCA-

A))(RMAT('E ACT(ON PRO3ECTS AN OT&ER PR(OR(T (N(T(AT('ES )OR -GUs

(NST(TUT(ONA- AN CAPAB(-(T BU(-(NG (N ACCORANCE (T& T&E

(MP-EMENT(NG GU(E-(NES AN MEC&AN(CS AS PROMU-GATE B T&E

COMM(TTEE.

These OC *esolutions e*e app*o,e+ b# then P*esi+ent Est*a+a on Octobe*

$ 1888.

Un+e* the allocation sche0e a+opte+ pu*suant to Resolution No. OCF88F

%%5$ the fi,e billion pesos -GSE) as to be allocate+ as follos4

1. The PhP" Billion of the -GSE) shall be allocate+ in acco*+ance ith the

allocation sche0e an+ i0ple0entin ui+elines an+ 0echanics p*o0ulate+

an+ a+opte+ b# the OC. To it4

a. The fi*st PhP Billion of the -GSE) shall be allocate+ in acco*+ance ith the

co+al fo*0ula sha*in sche0e as p*esc*ibe+ un+e* the 1881 -ocal

Go,e*n0ent Co+e2

b. The secon+ PhP Billion of the -GSE) shall be allocate+ in acco*+ance ith

a 0o+ifie+ 188 cost of +e,olution fun+ 6COE)7 sha*in sche0e$ as

*eco00en+e+ b# the *especti,e leaues of p*o,inces$ cities an+

0unicipalities to the OC. The 0o+ifie+ COE) sha*in fo*0ula is as follos4

P*o,ince 4 "%I



Cities 4 %I

Municipalities 4 "%I

This is applie+ to the P Billion afte* the app*o,e+ a0ounts *ante+ to

in+i,i+ual p*o,inces$ cities an+ 0unicipalities as assistance to co,e* +ec*ease

in 1888 (RA sha*e +ue to *e+uction in lan+ a*ea ha,e been ta9en out.

. The *e0ainin PhP1 Billion of the -GSE) shall be ea*0a*9e+ to suppo*t

local affi*0ati,e action p*o=ects an+ othe* p*io*it# initiati,es sub0itte+ b#

-GUs to the O,e*siht Co00ittee on e,olution fo* app*o,al in acco*+ance

ith its p*esc*ibe+ ui+elines as p*o0ulate+ an+ a+opte+ b# the OC.

(n Resolution No. OCF88F%%$ the O,e*siht Co00ittee set asi+e the one

billion pesos o* %I of the -GSE) to suppo*t -ocal Affi*0ati,e Action P*o=ects

6-AAPs7 of -GUs. This *e0ainin a0ount as inten+e+ to >*espon+ to the

u*ent nee+ fo* a++itional fun+s assistance$ othe*ise not a,ailable ithin

the pa*a0ete*s of othe* e/istin fun+ sou*ces.> )o* -GUs to be eliible fo*

fun+in un+e* the oneFbillionFpeso po*tion of the -GSE)$ the OC

p*o0ulate+ the folloin4

(((. CR(TER(A )OR E-(G(B(-(T4

1. -GUs 6p*o,ince$ cit#$ 0unicipalit#$ o* ba*ana#7$ in+i,i+uall# o* b# *oup o*

0ultiF-GUs o* leaues of -GUs$ especiall# those belonin to the 5th an+ th

class$ 0a# access the fun+ to suppo*t an# p*o=ects o* acti,ities that satisf#

an# of the afo*ecite+ pu*poses. A ba*ana# 0a# also access this fun+ +i*ectl#

o* th*ouh thei* *especti,e 0unicipalit# o* cit#.

. The p*opose+ p*o=ectJacti,it# shoul+ be nee+Fbase+$ a local p*io*it#$ ith

hih +e,elop0ent i0pact an+ a*e con*uent ith the socioFcultu*al$

econo0ic an+ +e,elop0ent aen+a of the Est*a+a A+0inist*ation$ such as

foo+ secu*it#$ po,e*t# alle,iation$ elect*ification$ an+ peace an+ o*+e*$ a0on

othe*s.



. Eliible fo* fun+in un+e* this fun+ a*e p*o=ects a*isin f*o0$ but not

li0ite+ to$ the folloin a*eas of conce*n4

a. +eli,e*# of local health an+ sanitation se*,ices$ hospital se*,ices an+ othe*

te*tia*# se*,ices2

b. +eli,e*# of social elfa*e se*,ices2

c. p*o,ision of socioFcultu*al se*,ices an+ facilities fo* #outh an+ co00unit#

+e,elop0ent2

+. p*o,ision of a*icultu*al an+ onFsite *elate+ *esea*ch2

e. i0p*o,e0ent of co00unit#Fbase+ fo*est*# p*o=ects an+ othe* local p*o=ects

on en,i*on0ent an+ natu*al *esou*ces p*otection an+ conse*,ation2

f. i0p*o,e0ent of tou*is0 facilities an+ p*o0otion of tou*is02

. peace an+ o*+e* an+ public safet#2

h. const*uction$ *epai* an+ 0aintenance of public o*9s an+ inf*ast*uctu*e$

inclu+in public buil+ins an+ facilities fo* public use$ especiall# those

+est*o#e+ o* +a0ae+ b# 0anF0a+e o* natu*al cala0ities an+ +isaste* as

ell as facilities fo* ate* suppl#$ floo+ cont*ol an+ *i,e* +i9es2

i. p*o,ision of local elect*ification facilities2

=. li,elihoo+ an+ foo+ p*o+uction se*,ices$ facilities an+ e:uip0ent2



9. othe* p*o=ects that 0a# be autho*i;e+ b# the OC consistent ith the

afo*e0entione+ ob=ecti,es an+ ui+elines2

". E/cept on e/t*e0el# 0e*ito*ious cases$ as 0a# be +ete*0ine+ b# the

O,e*siht Co00ittee on e,olution$ this po*tion of the -GSE) shall not be

use+ in e/pen+itu*es fo* pe*sonal costs o* benefits un+e* e/istin las

applicable to o,e*n0ents. Gene*all#$ this fun+ shall co,e* the folloin

ob=ects of e/pen+itu*es fo* p*o*a0s$ p*o=ects an+ acti,ities a*isin f*o0 the

i0ple0entation of +e,ol,e+ an+ *eula* functions an+ se*,ices4

a. ac:uisitionJp*ocu*e0ent of supplies an+ 0ate*ials c*itical to the full an+

effecti,e i0ple0entation of +e,ol,e+ p*o*a0s$ p*o=ects an+ acti,ities2

b. *epai* an+Jo* i0p*o,e0ent of facilities2

c. *epai* an+Jo* up*a+in of e:uip0ent2

+. ac:uisition of basic e:uip0ent2

e. const*uction of a++itional o* ne facilities2

f. counte*pa*t cont*ibution to =oint a**ane0ents o* collecti,e p*o=ects a0on

*oups of 0unicipalities$ cities an+Jo* p*o,inces *elate+ to +e,olution an+

+eli,e*# of basic se*,ices.

5. To be eliible fo* fun+in$ an -GU o* *oup of -GU shall sub0it to the

O,e*siht Co00ittee on e,olution th*ouh the epa*t0ent of (nte*io* an+

-ocal Go,e*n0ents$ ithin the p*esc*ibe+ sche+ule an+ ti0ef*a0e$ a -ette*

Re:uest fo* )un+in Suppo*t f*o0 the Affi*0ati,e Action P*o*a0 un+e* the

-GSE)$ +ul# sine+ b# the conce*ne+ -GU6s7 an+ en+o*se+ b# coope*ato*s



an+Jo* beneficia*ies$ as ell as the +ul# sine+ Resolution of En+o*se0ent b#

the *especti,e Sanunian6s7 of the -GUs conce*ne+. The -GUFp*oponent

shall also be *e:ui*e+ to sub0it the P*o=ect Re:uest 6PR7$ usin OC P*o=ect

Re:uest )o*0 No. 88F%$ that +etails the folloin4

6a7 ene*al +esc*iption o* b*ief of the p*o=ect2

6b7 ob=ecti,es an+ =ustifications fo* un+e*ta9in the p*o=ect$ hich shoul+

hihliht the benefits to the localit# an+ the e/pecte+ i0pact to the local

p*o*a0Jp*o=ect a*isin f*o0 the full an+ efficient i0ple0entation of social

se*,ices an+ facilities$ at the local le,els2

6c7 ta*et outputs o* 9e# *esult a*eas2

6+7 sche+ule of acti,ities an+ +etails of *e:ui*e0ents2

6e7 total cost *e:ui*e0ent of the p*o=ect2

6f7 p*oponentKs counte*pa*t fun+in sha*e$ if an#$ an+ i+entifie+ sou*ce6s7 of

counte*pa*t fun+s fo* the full i0ple0entation of the p*o=ect2

67 *e:ueste+ a0ount of p*o=ect cost to be co,e*e+ b# the -GSE).

)u*the*$ un+e* the ui+elines fo*0ulate+ b# the O,e*siht Co00ittee as

containe+ in Attach0ent F Resolution No. OCF88F%%$ the -GUs e*e

*e:ui*e+ to i+entif# the p*o=ects eliible fo* fun+in un+e* the oneFbillionFpeso

po*tion of the -GSE) an+ sub0it the p*o=ect p*oposals the*eof an+ othe*

+ocu0enta*# *e:ui*e0ents to the (-G fo* app*aisal. The p*o=ect p*oposals

that passe+ the (-GKs app*aisal oul+ then be sub0itte+ to the O,e*siht

Co00ittee fo* *e,ie$ e,aluation an+ app*o,al. Upon its app*o,al$ the

O,e*siht Co00ittee oul+ then se*,e notice to the BM fo* the p*epa*ation

of the Special Allot0ent Release O*+e* 6SARO7 an+ Notice of Cash Allocation



6NCA7 to effect the *elease of fun+s to the sai+ -GUs.

The -GSE) in the GAA of %%%

Un+e* Rep. Act No. <!%$ othe*ise 9non as the GAA of %%%$ the a0ount of

P111$!!<$%%%$%%% as allotte+ as the sha*e of the -GUs in the inte*nal

*e,enue ta/es. As in the GAA of 1888$ the GAA of %%% containe+ a p*o,iso

ea*0a*9in fi,e billion pesos of the (RA fo* the -GSE). This p*o,iso$ foun+ in

(te0 No. 1$ Special P*o,isions$ Title DDD'(( A. (nte*nal Re,enue Allot0ent$

as si0ila*l# o*+e+ as that containe+ in the GAA of 1888.

The O,e*siht Co00ittee$ in its Resolution No. OCF%%%F% +ate+ 3une $%%%$ a+opte+ the folloin allocation sche0e o,e*nin the fi,e billion

pesos -GSE) fo* %%%4

1. The PhP.5 Billion of the C %%% -GSE) shall be allocate+ to an+ sha*e+

b# the fou* le,els of -GUs$ i.e.$ p*o,inces$ cities$ 0unicipalities$ an+

ba*ana#s$ usin the folloin pe*centaeFsha*in fo*0ula a*ee+ upon an+

=ointl# en+o*se+ b# the ,a*ious -eaues of -GUs4

)o* P*o,inces I o* P 81%$%%%$%%%

)o* Cities I o* <%5$%%%$%%%

)o* Municipalities 5I o* 1$5$%%%$%%%

)o* Ba*ana#s 1I o* 5%$%%%$%%%

P*o,i+e+ that the *especti,e -eaues *ep*esentin the p*o,inces$ cities$

0unicipalities an+ ba*ana#s shall +*a up an+ a+opt the ho*i;ontal

+ist*ibutionJsha*in sche0es a0on the 0e0be* -GUs he*eb# the -eaues



conce*ne+ 0a# opt to a+opt +i*ect financial assistance o* p*o=ectFbase+

a**ane0ent$ such that the -GSE) allocation fo* in+i,i+ual -GU shall be

*elease+ +i*ectl# to the -GU conce*ne+2

P*o,i+e+ fu*the* that the in+i,i+ual -GSE) sha*es to -GUs a*e use+ in

acco*+ance ith the ene*al pu*poses an+ ui+elines p*o0ulate+ b# the

OC fo* the i0ple0entation of the -GSE) at the local le,els pu*suant to Res.

No. OCF88F%% +ate+ Octobe* !$ 1888 an+ pu*suant to the -eauesK

ui+elines an+ 0echanis0 as app*o,e+ b# the OC2

P*o,i+e+ fu*the* that each of the -eaues shall sub0it to the OC fo* its

app*o,al thei* *especti,e allocation sche0e$ the list of -GUs ith the

co**espon+in -GSE) sha*es an+ the co**espon+in p*o=ect cateo*ies if

p*o=ectFbase+2

P*o,i+e+ fu*the* that upon app*o,al b# the OC$ the lists of -GUs shall be

en+o*se+ to the BM as the basis fo* the p*epa*ation of the co**espon+in

NCAs$ SAROs$ an+ *elate+ bu+etJ*elease +ocu0ents.

. The *e0ainin P1$5%%$%%%$%%% of the C %%% -GSE) shall be ea*0a*9e+ to

suppo*t the folloin initiati,es an+ local affi*0ati,e action p*o=ects$ to been+o*se+ to an+ app*o,e+ b# the O,e*siht Co00ittee on e,olution in

acco*+ance ith the OC a*ee0ents$ ui+elines$ p*oce+u*es an+

+ocu0enta*# *e:ui*e0ents4

On 3ul# 5$ %%%$ then P*esi+ent Est*a+a issue+ a Me0o*an+u0 autho*i;in

then E/ecuti,e Sec*eta*# @a0o*a an+ the BM to i0ple0ent an+ *elease the

.5 billion pesos -GSE) fo* %%% in acco*+ance ith Resolution No. OCF

%%%F%.

The*eafte*$ the O,e*siht Co00ittee$ no un+e* the a+0inist*ation of

P*esi+ent Glo*ia MacapaalFA**o#o$ p*o0ulate+ Resolution No. OCF%%1F8

entitle+ >AOPT(NG RESO-UT(ON NO. OCF%%%F% (N T&E A--OCAT(ON$

(MP-EMENTAT(ON AN RE-EASE O) T&E REMA(N(NG P.5 B(--(ON -GSE) )OR

C %%%.> Un+e* this *esolution$ the a0ount of one billion pesos of the -GSE)



as to be *elease+ in acco*+ance ith pa*a*aph 1 of Resolution No. OCF

%%%F$ to co0plete the .5 billion pesos allocate+ to the -GUs$ hile the

a0ount of 1.5 billion pesos as allocate+ fo* the -AAP. &oe,e*$ out of the

latte* a0ount$ P"%%$%%%$%%% as to be allocate+ an+ *elease+ as follos4

P5%$%%%$%%% as financial assistance to the -AAPs of -GUs2 P!5$%$! as

financial assistance to co,e* the +ec*ease in the (RA of -GUs conce*ne+ +ueto *e+uction in lan+ a*ea2 an+ P!"$8$!! fo* the -GSE) Capabilit#FBuil+in

)un+.

The -GSE) in the GAA of %%1

(n ,ie of the failu*e of Con*ess to enact the ene*al app*op*iations la fo*

%%1$ the GAA of %%% as +ee0e+ *eFenacte+$ toethe* ith the (RA of the

-GUs the*ein an+ the p*o,iso ea*0a*9in fi,e billion pesos the*eof fo* the

-GSE).

On 3anua*# 8$ %%$ the O,e*siht Co00ittee a+opte+ Resolution No. OCF

%%F%%1 allocatin the fi,e billion pesos -GSE) fo* %%1 as follos4

Mo+ifie+ Co+al )o*0ula P .%%% billion

P*io*it# P*o=ects 1.8%% billion

Capabilit# Buil+in )un+ .1%% billion

P 5.%%% billion

RESO-'E )URT&ER$ that the P.% B of the C %%1 -GSE) hich is to be

allocate+ acco*+in to the 0o+ifie+ co+al fo*0ula shall be *elease+ to the

fou* le,els of -GUs$ i.e.$ p*o,inces$ cities$ 0unicipalities an+ ba*ana#s$ as

follos4

-GUs Pe*centae A0ount

P*o,inces 5 P %.!5% billion

Cities 5 %.!5%



Municipalities 5 1.%5%

Ba*ana#s 15 %."5%

1%% P .%%% billion

RESO-'E )URT&ER$ that the P1.8 B ea*0a*9e+ fo* p*io*it# p*o=ects shall be

+ist*ibute+ acco*+in to the folloin c*ite*ia4

1.% )o* p*o=ects of the "th$ 5th an+ th class -GUs2 o*

.% P*o=ects in consonance ith the P*esi+entKs State of the Nation A++*ess

6SONA7Jsu00it co00it0ents.

RESO-'E )URT&ER$ that the *e0ainin P1%% 0illion -GSE) capabilit#

buil+in fun+ shall be +ist*ibute+ in acco*+ance ith the *eco00en+ation of

the -eaues of P*o,inces$ Cities$ Municipalities an+ Ba*ana#s$ an+ app*o,e+

b# the OC.

Upon *eceipt of a cop# of the abo,e *esolution$ Go,. Man+anas *ote to thein+i,i+ual 0e0be*s of the O,e*siht Co00ittee see9in the *econsi+e*ation

of Resolution No. OCF%%F%%1. &e also *ote to P*es. MacapaalFA**o#o

u*in he* to +isapp*o,e sai+ *esolution as it ,iolates the Constitution an+ the

-ocal Go,e*n0ent Co+e of 1881.

On 3anua*# 5$ %%$ P*es. MacapaalFA**o#o app*o,e+ Resolution No. OCF

%%F%%1.

The Petitione*Ks Case

The petitione* no co0es to this Cou*t assailin as unconstitutional an+ ,oi+

the p*o,isos in the GAAs of 1888$ %%% an+ %%1$ *elatin to the -GSE).

Si0ila*l# assaile+ a*e the O,e*siht Co00itteeKs Resolutions Nos. OCF88F



%%$ OCF88F%%5$ OCF88F%%$ OCF%%%F%$ OCF%%1F%8 an+ OCF

%%F%%1 issue+ pu*suant the*eto. The petitione* sub0its that the assaile+

p*o,isos in the GAAs an+ the OC *esolutions$ insofa* as the# ea*0a*9e+ the

a0ount of fi,e billion pesos of the (RA of the -GUs fo* 1888$ %%% an+ %%1

fo* the -GSE) an+ i0pose+ con+itions fo* the *elease the*eof$ ,iolate the

Constitution an+ the -ocal Go,e*n0ent Co+e of 1881.

Section $ A*ticle D of the Constitution is in,o9e+ as it 0an+ates that the >=ust

sha*e> of the -GUs shall be auto0aticall# *elease+ to the0. Sections 1< an+

< of the -ocal Go,e*n0ent Co+e of 1881$ hich en=oin that the >=ust sha*e>

of the -GUs shall be >auto0aticall# an+ +i*ectl#> *elease+ to the0 >ithout

nee+ of fu*the* action> a*e$ li9eise$ cite+.

The petitione* posits that to sub=ect the +ist*ibution an+ *elease of the fi,eF

billionFpeso po*tion of the (RA$ classifie+ as the -GSE)$ to co0pliance b# the

-GUs ith the i0ple0entin *ules an+ *eulations$ inclu+in the 0echanis0s

an+ ui+elines p*esc*ibe+ b# the O,e*siht Co00ittee$ cont*a,enes the

e/plicit +i*ecti,e of the Constitution that the -GUsK sha*e in the national ta/es

>shall be auto0aticall# *elease+ to the0.> The petitione* 0aintains that the

use of the o*+ >shall> 0ust be i,en a co0pulso*# 0eanin.

To fu*the* butt*ess this a*u0ent$ the petitione* conten+s that to ,est the

O,e*siht Co00ittee ith the autho*it# to +ete*0ine the +ist*ibution an+

*elease of the -GSE)$ hich is a pa*t of the (RA of the -GUs$ is an anathe0a

to the p*inciple of local autono0# as e0bo+ie+ in the Constitution an+ the

-ocal Go,e*n0ent Co+e of 1881. The petitione* cites as an e/a0ple the

e/pe*ience in %%1 hen the *elease of the -GSE) as lon +ela#e+ because

the O,e*siht Co00ittee as not able to con,ene that #ea* an+ no

ui+elines e*e issue+ the*efo*. )u*the*$ the possible +isapp*o,al b# the

O,e*siht Co00ittee of the p*o=ect p*oposals of the -GUs oul+ *esult in the

+i0inution of the latte*Ks sha*e in the (RA.

Anothe* inf*ine0ent allee+ to be occasione+ b# the assaile+ OC

*esolutions is the i0p*ope* a0en+0ent to Section <5 of the -ocal

Go,e*n0ent Co+e of 1881 on the pe*centae sha*in of the (RA a0on the

-GUs. Sai+ p*o,ision allocates the (RA as follos4 P*o,inces I2 Cities

I2 Municipalities "I2 an+ Ba*ana#s %I.< This fo*0ula has been

i0p*ope*l# a0en+e+ o* 0o+ifie+$ ith *espect to the fi,eFbillionFpeso po*tion



of the (RA allotte+ fo* the -GSE)$ b# the assaile+ OC *esolutions as the#

in,a*iabl# p*o,i+e+ fo* a +iffe*ent sha*in sche0e.

The 0o+ifications allee+l# constitute an illeal a0en+0ent b# the e/ecuti,e

b*anch of a substanti,e la. Mo*eo,e*$ the petitione* 0entions that in the

-ette* +ate+ ece0be* 5$ %%1 of *espon+ent E/ecuti,e Sec*eta*# Ro0ulo

a++*esse+ to *espon+ent Sec*eta*# Bonco+in$ the fo*0e* en+o*se+ to the

latte* the *elease of fun+s to ce*tain -GUs f*o0 the -GSE) in acco*+ance ith

the han+*itten inst*uctions of P*esi+ent A**o#o. Thus$ the -GUs a*e at a loss

as to ho a po*tion of the -GSE) is actuall# allocate+. )u*the*$ the*e a*e still

po*tions of the -GSE) that$ to +ate$ ha,e not been *ecei,e+ b# the petitione*2

hence$ *esultin in +a0ae an+ in=u*# to the petitione*.

The petitione* p*a#s that the Cou*t +ecla*e as unconstitutional an+ ,oi+ the

assaile+ p*o,isos *elatin to the -GSE) in the GAAs of 1888$ %%% an+ %%1

an+ the assaile+ OC *esolutions 6Resolutions Nos. OCF88F%%$ OCF88F%%5$

OCF88F%%$ OCF%%%F%$ OCF%%1F%8 an+ OCF%%F%%17 issue+ b#

the O,e*siht Co00ittee pu*suant the*eto. The petitione*$ li9eise$ p*a#s

that the Cou*t +i*ect the *espon+ents to *ectif# the unlaful an+ illeal

+ist*ibution an+ *eleases of the -GSE) fo* the afo*e0entione+ #ea*s an+

*elease the sa0e in acco*+ance ith the sha*in fo*0ula un+e* Section <5

of the -ocal Go,e*n0ent Co+e of 1881. )inall#$ the petitione* u*es the Cou*t

to +ecla*e that the enti*e (RA shoul+ be *elease+ auto0aticall# ithout

fu*the* action b# the -GUs as *e:ui*e+ b# the Constitution an+ the -ocalGo,e*n0ent Co+e of 1881.

The Respon+entsK A*u0ents

The *espon+ents$ th*ouh the Office of the Solicito* Gene*al$ u*e the Cou*t

to +is0iss the petition on p*oce+u*al an+ substanti,e *oun+s. On the latte*$

the *espon+ents conten+ that the assaile+ p*o,isos in the GAAs of 1888$ %%%

an+ %%1 an+ the assaile+ *esolutions issue+ b# the O,e*siht Co00ittee a*e

not constitutionall# infi*0. The *espon+ents a+,ance the ,ie that Section $

A*ticle D of the Constitution +oes not specif# that the >=ust sha*e> of the -GUs

shall be +ete*0ine+ solel# b# the -ocal Go,e*n0ent Co+e of 1881. Mo*eo,e*$

the ph*ase >as +ete*0ine+ b# la> in the sa0e constitutional p*o,ision

0eans that the*e e/ists no li0itation on the poe* of Con*ess to +ete*0ine

hat is the >=ust sha*e> of the -GUs in the national ta/es. (n othe* o*+s$



Con*ess is the a*bite* of hat shoul+ be the >=ust sha*e> of the -GUs in the

national ta/es.

The *espon+ents fu*the* theo*i;e that Section <5 of the -ocal Go,e*n0ent

Co+e of 1881$ hich p*o,i+es fo* the pe*centae sha*in of the (RA a0on

the -GUs$ as not inten+e+ to be a fi/e+ +ete*0ination of thei* >=ust sha*e> in

the national ta/es. Con*ess 0a# enact othe* las$ inclu+in app*op*iations

las such as the GAAs of 1888$ %%% an+ %%1$ p*o,i+in fo* a +iffe*ent

sha*in fo*0ula. Section <5 of the -ocal Go,e*n0ent Co+e of 1881 as

0e*el# inten+e+ to be the >+efault sha*e> of the -GUs to +o aa# ith the

nee+ to +ete*0ine annuall# b# la thei* >=ust sha*e.> &oe,e*$ the -GUs ha,e

no ,este+ *iht in a pe*0anent o* fi/e+ pe*centae as Con*ess 0a# inc*ease

o* +ec*ease the >=ust sha*e> of the -GUs in acco*+ance ith hat it belie,es is

app*op*iate fo* thei* ope*ation. The*e is nothin in the Constitution hich

p*ohibits Con*ess f*o0 0a9in such +ete*0ination th*ouh theapp*op*iations las. (f the p*o,isions of a pa*ticula* statute$ the GAA in this

case$ a*e ithin the constitutional poe* of the leislatu*e to enact$ the#

shoul+ be sustaine+ hethe* the cou*ts a*ee o* not in the is+o0 of thei*

enact0ent.

On p*oce+u*al *oun+s$ the *espon+ents u*e the Cou*t to +is0iss the

petition out*iht as the sa0e is +efecti,e. The petition allee+l# *aises factual

issues hich shoul+ be p*ope*l# th*eshe+ out in the loe* cou*ts$ not this

Cou*t$ not bein a t*ie* of facts. Specificall#$ the petitione*Ks alleation thatthe*e a*e po*tions of the -GSE) that it has not$ to +ate$ *ecei,e+$ the*eb#

causin it 6the petitione*7 in=u*# an+ +a0ae$ is sub=ect to p*oof an+ 0ust be

substantiate+ in the p*ope* ,enue$ i.e.$ the loe* cou*ts.

)u*the*$ acco*+in to the *espon+ents$ the petition has al*ea+# been *en+e*e+

0oot an+ aca+e0ic as it no lone* p*esents a =usticiable cont*o,e*s#. The

(RAs fo* the #ea*s 1888$ %%% an+ %%1$ ha,e al*ea+# been *elease+ an+ the

o,e*n0ent is no ope*atin un+e* the %% bu+et. (n suppo*t of this$ the

*espon+ents sub0itte+ ce*tifications issue+ b# office*s of the BM attestinto the *elease of the allocation o* sha*es of the petitione* in the -GSE) fo*

1888$ %%% an+ %%1. The*e is$ the*efo*e$ nothin 0o*e to p*ohibit.

)inall#$ the petitione* allee+l# has no leal stan+in to b*in the suit

because it has not suffe*e+ an# in=u*#. (n fact$ the petitione*Ks >=ust sha*e> has



e,en inc*ease+. Pu*suant to Section <5 of the -ocal Go,e*n0ent Co+e of

1881$ the sha*e of the p*o,inces is I. OC Nos. 88F%%5$ 88F%% an+ 88F

%% a,e the p*o,inces "%I of P billion of the -GSE). OC Nos. %%%F%

an+ %%1F%8 appo*tione+ I of P.5 billion to the p*o,inces. On the othe*

han+$ OC No. %%1F%%1 allocate+ 5I of P billion to the p*o,inces. Thus$

the petitione* has not suffe*e+ an# in=u*# in the i0ple0entation of theassaile+ p*o,isos in the GAAs of 1888$ %%% an+ %%1 an+ the OC

*esolutions.

The Rulin of the Cou*t P*oce+u*al (ssues

Befo*e *esol,in the petition on its 0e*its$ the Cou*t shall fi*st *ule on the

folloin p*oce+u*al issues *aise+ b# the *espon+ents4 617 hethe* the

petitione* has leal stan+in o* locus stan+i to file the p*esent suit2 67

hethe* the petition in,ol,es factual :uestions that a*e p*ope*l# coni;able

b# the loe* cou*ts2 an+ 67 hethe* the issue ha+ been *en+e*e+ 0oot an+

aca+e0ic.

The petitione* has locus stan+i to 0aintain the p*esent suit

The ist of the :uestion of stan+in is hethe* a pa*t# has >allee+ such ape*sonal sta9e in the outco0e of the cont*o,e*s# as to assu*e that conc*ete

a+,e*seness hich sha*pens the p*esentation of issues upon hich the cou*t

so la*el# +epen+s fo* illu0ination of +ifficult constitutional :uestions.>8

Acco*+inl#$ it has been hel+ that the inte*est of a pa*t# assailin the

constitutionalit# of a statute 0ust be +i*ect an+ pe*sonal. Such pa*t# 0ust be

able to sho$ not onl# that the la o* an# o,e*n0ent act is in,ali+$ but also

that he has sustaine+ o* is in i00inent +ane* of sustainin so0e +i*ect

in=u*# as a *esult of its enfo*ce0ent$ an+ not 0e*el# that he suffe*s the*eb# in

so0e in+efinite a#. (t 0ust appea* that the pe*son co0plainin has been o*

is about to be +enie+ so0e *iht o* p*i,ilee to hich he is lafull# entitle+ o*

that he is about to be sub=ecte+ to so0e bu*+ens o* penalties b# *eason of

the statute o* act co0plaine+ of.1%

The Cou*t hol+s that the petitione* possesses the *e:uisite stan+in to

0aintain the p*esent suit. The petitione*$ a local o,e*n0ent unit$ see9s *elief

in o*+e* to p*otect o* ,in+icate an inte*est of its on$ an+ of the othe* -GUs.



This inte*est pe*tains to the -GUsK sha*e in the national ta/es o* the (RA. The

petitione*Ks constitutional clai0 is$ in substance$ that the assaile+ p*o,isos in

the GAAs of 1888$ %%% an+ %%1$ an+ the OC *esolutions cont*a,ene

Section $ A*ticle D of the Constitution$ 0an+atin the >auto0atic *elease> to

the -GUs of thei* sha*e in the national ta/es. )u*the*$ the in=u*# that the

petitione* clai0s to suffe* is the +i0inution of its sha*e in the (RA$ as p*o,i+e+un+e* Section <5 of the -ocal Go,e*n0ent Co+e of 1881$ occasione+ b# the

i0ple0entation of the assaile+ 0easu*es. These alleations a*e sufficient to

*ant the petitione* stan+in to :uestion the ,ali+it# of the assaile+ p*o,isos

in the GAAs of 1888$ %%% an+ %%1$ an+ the OC *esolutions as the

petitione* clea*l# has >a plain$ +i*ect an+ a+e:uate inte*est> in the 0anne*

an+ +ist*ibution of the (RA a0on the -GUs.

The petition in,ol,es a sinificant leal issue

The c*u/ of the instant cont*o,e*s# is hethe* the assaile+ p*o,isos

containe+ in the GAAs of 1888$ %%% an+ %%1$ an+ the OC *esolutions

inf*ine the Constitution an+ the -ocal Go,e*n0ent Co+e of 1881. This is

un+oubte+l# a leal :uestion. On the othe* han+$ the folloin facts a*e not

+ispute+4

1. The ea*0a*9in of fi,e billion pesos of the (RA fo* the -GSE) in the assaile+

p*o,isos in the GAAs of 1888$ %%% an+ *eFenacte+ bu+et fo* %%12

. The p*o0ulation of the assaile+ OC *esolutions p*o,i+in fo* the

allocation sche0es co,e*in the sai+ fi,e billion pesos an+ the i0ple0entin

*ules an+ *eulations the*efo*2 an+

. The *elease of the -GSE) to the -GUs onl# upon thei* co0pliance ith the

i0ple0entin *ules an+ *eulations$ inclu+in the ui+elines an+0echanis0s$ p*esc*ibe+ b# the O,e*siht Co00ittee.

Consi+e*in that these facts$ hich a*e necessa*# to *esol,e the leal

:uestion no befo*e this Cou*t$ a*e no lone* in issue$ the sa0e nee+ not be

+ete*0ine+ b# a t*ial cou*t.11 (n an# case$ the *ule on hie*a*ch# of cou*ts ill



not p*e,ent this Cou*t f*o0 assu0in =u*is+iction o,e* the petition. The sai+

*ule 0a# be *ela/e+ hen the *e+*ess +esi*e+ cannot be obtaine+ in the

app*op*iate cou*ts o* he*e e/ceptional an+ co0pellin ci*cu0stances =ustif#

a,ail0ent of a *e0e+# ithin an+ callin fo* the e/e*cise of this Cou*tKs

p*i0a*# =u*is+iction.1

The c*ucial leal issue sub0itte+ fo* *esolution of this Cou*t entails the p*ope*

leal inte*p*etation of constitutional an+ statuto*# p*o,isions. Mo*eo,e*$ the

>t*anscen+ental i0po*tance> of the case$ as it necessa*il# in,ol,es the

application of the constitutional p*inciple on local autono0#$ cannot be

ainsai+. The natu*e of the p*esent cont*o,e*s#$ the*efo*e$ a**ants the

*ela/ation b# this Cou*t of p*oce+u*al *ules in o*+e* to *esol,e the case

fo*thith.

The substanti,e issue nee+s to be *esol,e+ notithstan+in the supe*,enin

e,ents

G*antin a*uen+o that$ as conten+e+ b# the *espon+ents$ the *esolution of

the case ha+ al*ea+# been o,e*ta9en b# supe*,enin e,ents as the (RA$

inclu+in the -GSE)$ fo* 1888$ %%% an+ %%1$ ha+ al*ea+# been *elease+

an+ the o,e*n0ent is no ope*atin un+e* a ne app*op*iations la$ still$

the*e is co0pellin *eason fo* this Cou*t to *esol,e the substanti,e issue

*aise+ b# the instant petition. Supe*,enin e,ents$ hethe* inten+e+ o*

acci+ental$ cannot p*e,ent the Cou*t f*o0 *en+e*in a +ecision if the*e is a

*a,e ,iolation of the Constitution.1 E,en in cases he*e supe*,enin

e,ents ha+ 0a+e the cases 0oot$ the Cou*t +i+ not hesitate to *esol,e the

leal o* constitutional issues *aise+ to fo*0ulate cont*ollin p*inciples to

ui+e the bench$ ba* an+ public.1"

Anothe* *eason =ustif#in the *esolution b# this Cou*t of the substanti,e issue

no befo*e it is the *ule that cou*ts ill +eci+e a :uestion othe*ise 0oot an+

aca+e0ic if it is >capable of *epetition$ #et e,a+in *e,ie.>15 )o* the GAAs in

the co0in #ea*s 0a# contain p*o,isos si0ila* to those no bein souht to

be in,ali+ate+$ an+ #et$ the :uestion 0a# not be +eci+e+ befo*e anothe* GAA

is enacte+. (t$ thus$ behoo,es this Cou*t to 0a9e a cateo*ical *ulin on the

substanti,e issue no.



Substanti,e (ssue

As ea*lie* inti0ate+$ the *esolution of the substanti,e leal issue in this case

calls fo* the application of a 0ost i0po*tant constitutional polic# an+

p*inciple$ that of local autono0#.1 (n A*ticle (( of the Constitution$ the State

has e/p*essl# a+opte+ as a polic# that4

Section 5. The State shall ensu*e the autono0# of local o,e*n0ents.

An enti*e a*ticle 6A*ticle D7 of the Constitution has been +e,ote+ to

ua*anteein an+ p*o0otin the autono0# of -GUs. Section the*eof

*eite*ates the State polic# in this ise4

Section . The te**ito*ial an+ political sub+i,isions shall en=o# local autono0#.

Consistent ith the p*inciple of local autono0#$ the Constitution confines the

P*esi+entKs poe* o,e* the -GUs to one of ene*al supe*,ision.1! This

p*o,ision has been inte*p*ete+ to e/clu+e the poe* of cont*ol. The

+istinction beteen the to poe*s as enunciate+ in *ilon ,. -i041<

An office* in cont*ol la#s +on the *ules in the +oin of an act. (f the# a*e not

folloe+$ he 0a#$ in his +isc*etion$ o*+e* the act un+one o* *eF+one b# his

subo*+inate o* he 0a# e,en +eci+e to +o it hi0self. Supe*,ision +oes not

co,e* such autho*it#. The supe*,iso* o* supe*inten+ent 0e*el# sees to it that

the *ules a*e folloe+$ but he hi0self +oes not la# +on such *ules$ no* +oes

he ha,e the +isc*etion to 0o+if# o* *eplace the0. (f the *ules a*e not

obse*,e+$ he 0a# o*+e* the o*9 +one o* *eF+one but onl# to confo*0 to the

p*esc*ibe+ *ules. &e 0a# not p*esc*ibe his on 0anne* fo* +oin the act. &e

has no =u+0ent on this 0atte* e/cept to see to it that the *ules a*e

folloe+.18

The -ocal Go,e*n0ent Co+e of 1881% as enacte+ to flesh out the 0an+ate

of the Constitution.1 The State polic# on local autono0# is a0plifie+ in

Section the*eof4



Sec. . ecla*ation of Polic#. 6a7 (t is he*eb# +ecla*e+ the polic# of the State

that the te**ito*ial an+ political sub+i,isions of the State shall en=o# enuine

an+ 0eaninful local autono0# to enable the0 to attain thei* fullest

+e,elop0ent as selfF*eliant co00unities an+ 0a9e the0 0o*e effecti,epa*tne*s in the attain0ent of national oals. Toa*+ this en+$ the State shall

p*o,i+e fo* a 0o*e *esponsi,e an+ accountable local o,e*n0ent st*uctu*e

institute+ th*ouh a s#ste0 of +ecent*ali;ation he*eb# local o,e*n0ent

units shall be i,en 0o*e poe*s$ autho*it#$ *esponsibilities$ an+ *esou*ces.

The p*ocess of +ecent*ali;ation shall p*ocee+ f*o0 the National Go,e*n0ent

to the local o,e*n0ent units.

Gui+e+ b# these p*ecepts$ the Cou*t shall no +ete*0ine hethe* the

assaile+ p*o,isos in the GAAs of 1888$ %%% an+ %%1$ ea*0a*9in fo* eachco**espon+in #ea* the a0ount of fi,e billion pesos of the (RA fo* the -GSE)

an+ the OC *esolutions p*o0ulate+ pu*suant the*eto$ t*ans*ess the

Constitution an+ the -ocal Go,e*n0ent Co+e of 1881.

The assaile+ p*o,isos in the GAAs of 1888$ %%% an+ %%1 an+ the OC

*esolutions ,iolate the constitutional p*ecept on local autono0#

Section $ A*ticle D of the Constitution *ea+s4

Sec. . -ocal o,e*n0ent units shall ha,e a =ust sha*e$ as +ete*0ine+ b# la$

in the national ta/es hich shall be auto0aticall# *elease+ to the0.

hen pa*se+$ it oul+ be *ea+il# seen that this p*o,ision 0an+ates that 617

the -GUs shall ha,e a >=ust sha*e> in the national ta/es2 67 the >=ust sha*e>

shall be +ete*0ine+ b# la2 an+ 67 the >=ust sha*e> shall be auto0aticall#*elease+ to the -GUs.

The -ocal Go,e*n0ent Co+e of 1881$ a0on its salient p*o,isions$

un+e*sco*es the auto0atic *elease of the -GUsK >=ust sha*e> in this ise4



Sec. 1<. Poe* to Gene*ate an+ Appl# Resou*ces. -ocal o,e*n0ent units

shall ha,e the poe* an+ autho*it# to establish an o*ani;ation that shall be

*esponsible fo* the efficient an+ effecti,e i0ple0entation of thei*

+e,elop0ent plans$ p*o*a0 ob=ecti,es an+ p*io*ities2 to c*eate thei* on

sou*ces of *e,enue an+ to le,# ta/es$ fees$ an+ cha*es hich shall acc*ue

e/clusi,el# fo* thei* use an+ +isposition an+ hich shall be *etaine+ b# the02to ha,e a =ust sha*e in national ta/es hich shall be auto0aticall# an+

+i*ectl# *elease+ to the0 ithout nee+ of fu*the* action2

...

Sec. <. Auto0atic Release of Sha*es. 6a7 The sha*e of each local

o,e*n0ent unit shall be *elease+$ ithout nee+ of an# fu*the* action$

+i*ectl# to the p*o,incial$ cit#$ 0unicipal o* ba*ana# t*easu*e*$ as the case

0a# be$ on a :ua*te*l# basis ithin fi,e 657 +a#s afte* the en+ of each

:ua*te*$ an+ hich shall not be sub=ect to an# lien o* hol+bac9 that 0a# be

i0pose+ b# the national o,e*n0ent fo* hate,e* pu*pose.

6b7 Nothin in this Chapte* shall be un+e*stoo+ to +i0inish the sha*e of local

o,e*n0ent units un+e* e/istin las.

ebste*Ks Thi*+ Ne (nte*national ictiona*# +efines >auto0atic> as

>in,olunta*# eithe* holl# o* to a 0a=o* e/tent so that an# acti,it# of the ill

is la*el# neliible2 of a *efle/ natu*e2 ithout ,olition2 0echanical2 li9e o*

suesti,e of an auto0aton.> )u*the*$ the o*+ >auto0aticall#> is +efine+ as

>in an auto0atic 0anne*4 ithout thouht o* conscious intention.> Bein

>auto0atic$> thus$ connotes so0ethin 0echanical$ spontaneous an+

pe*functo*#. As such$ the -GUs a*e not *e:ui*e+ to pe*fo*0 an# act to *ecei,e

the >=ust sha*e> acc*uin to the0 f*o0 the national coffe*s. As e0phasi;e+ b#

the -ocal Go,e*n0ent Co+e of 1881$ the >=ust sha*e> of the -GUs shall be

*elease+ to the0 >ithout nee+ of fu*the* action.> Const*uin Section < of

the -GC$ e hel+ in Pi0entel$ 3*. ,. Aui**e$ ,i;4

Section " of AO ! cannot$ hoe,e*$ be uphel+. A basic featu*e of local

fiscal autono0# is the auto0atic *elease of the sha*es of -GUs in the National

inte*nal *e,enue. This is 0an+ate+ b# no less than the Constitution. The -ocal

Go,e*n0ent Co+e specifies fu*the* that the *elease shall be 0a+e +i*ectl# to



the -GU conce*ne+ ithin fi,e 657 +a#s afte* e,e*# :ua*te* of the #ea* an+

>shall not be sub=ect to an# lien o* hol+bac9 that 0a# be i0pose+ b# the

national o,e*n0ent fo* hate,e* pu*pose.> As a *ule$ the te*0 >S&A--> is a

o*+ of co00an+ that 0ust be i,en a co0pulso*# 0eanin. The p*o,ision

is$ the*efo*e$ (MPERAT('E.

Section " of AO !$ hoe,e*$ o*+e*s the ithhol+in$ effecti,e 3anua*# 1$

188<$ of 1% pe*cent of the -GUsK (RA >pen+in the assess0ent an+ e,aluation

b# the e,elop0ent Bu+et Coo*+inatin Co00ittee of the e0e*in fiscal

situation> in the count*#. Such ithhol+in clea*l# cont*a,enes the

Constitution an+ the la. Althouh te0po*a*#$ it is e:ui,alent to a hol+bac9$

hich 0eans >so0ethin hel+ bac9 o* ithhel+$ often te0po*a*il#.> &ence$

the >te0po*a*#> natu*e of the *etention b# the national o,e*n0ent +oes not

0atte*. An# *etention is p*ohibite+.

(n su0$ hile Section 1 of AO ! 0a# be uphel+ as an a+,iso*# effecte+ in

ti0es of national c*isis$ Section " the*eof has no colo* of ,ali+it# at all. The

latte* p*o,ision effecti,el# enc*oaches on the fiscal autono0# of local

o,e*n0ents. Conce+e+l#$ the P*esi+ent as ellFintentione+ in issuin his

O*+e* to ithhol+ the -GUsK (RA$ but the *ule of la *e:ui*es that e,en the

best intentions 0ust be ca**ie+ out ithin the pa*a0ete*s of the Constitution

an+ the la. 'e*il#$ lau+able pu*poses 0ust be ca**ie+ out b# leal

0etho+s.

The >=ust sha*e> of the -GUs is inco*po*ate+ as the (RA in the app*op*iations

la o* GAA enacte+ b# Con*ess annuall#. Un+e* the assaile+ p*o,isos in the

GAAs of 1888$ %%% an+ %%1$ a po*tion of the (RA in the a0ount of fi,e

billion pesos as ea*0a*9e+ fo* the -GSE)$ an+ these p*o,isos i0pose+ the

con+ition that >such a0ount shall be *elease+ to the local o,e*n0ent units

sub=ect to the i0ple0entin *ules an+ *eulations$ inclu+in such

0echanis0s an+ ui+elines fo* the e:uitable allocations an+ +ist*ibution of

sai+ fun+ a0on local o,e*n0ent units sub=ect to the ui+elines that 0a#

be p*esc*ibe+ b# the O,e*siht Co00ittee on e,olution.> Pu*suant the*eto$the O,e*siht Co00ittee$ th*ouh the assaile+ OC *esolutions$ appo*tione+

the fi,e billion pesos -GSE) such that4

)o* 1888



P billion F allocate+ acco*+in to Sec. <5 -GC

P billion F Mo+ifie+ Sha*in )o*0ula 6P*o,inces "%I2

Cities %I2 Municipalities "%I7

P1 billion p*o=ects 6-AAP7 app*o,e+ b# OC."

)o* %%%

P.5 billion Mo+ifie+ Sha*in )o*0ula 6P*o,inces I2

Cities I2 Municipalities 5I2 Ba*ana#s 1I72

P1.5 billion p*o=ects 6-AAP7 app*o,e+ b# the OC.5

)o* %%1

P billion Mo+ifie+ Sha*in )o*0ula 6P*o,inces 5I2

Cities 5I2 Municipalities 5I2 Ba*ana#s 15I7

P1.8 billion p*io*it# p*o=ects

P1%% 0illion capabilit# buil+in fun+.



Sinificantl#$ the -GSE) coul+ not be *elease+ to the -GUs ithout the

O,e*siht Co00itteeKs p*io* app*o,al. )u*the*$ ith *espect to the po*tion of

the -GSE) allocate+ fo* ,a*ious p*o=ects of the -GUs 6P1 billion fo* 18882 P1.5

billion fo* %%% an+ P billion fo* %%17$ the O,e*siht Co00ittee$ th*ouhthe assaile+ OC *esolutions$ lai+ +on ui+elines an+ 0echanis0s that the

-GUs ha+ to co0pl# ith befo*e the# coul+ a,ail of fun+s f*o0 this po*tion of

the -GSE). The ui+elines *e:ui*e+ 6a7 the -GUs to i+entif# the p*o=ects

eliible fo* fun+in base+ on the c*ite*ia lai+ +on b# the O,e*siht

Co00ittee2 6b7 the -GUs to sub0it thei* p*o=ect p*oposals to the (-G fo*

app*aisal2 6c7 the p*o=ect p*oposals that passe+ the app*aisal of the (-G to

be sub0itte+ to the O,e*siht Co00ittee fo* *e,ie$ e,aluation an+

app*o,al. (t as onl# upon app*o,al the*eof that the O,e*siht Co00ittee

oul+ +i*ect the BM to *elease the fun+s fo* the p*o=ects.

To the Cou*tKs 0in+$ the enti*e p*ocess in,ol,in the +ist*ibution an+ *elease

of the -GSE) is constitutionall# i0pe*0issible. The -GSE) is pa*t of the (RA o*

>=ust sha*e> of the -GUs in the national ta/es. To sub=ect its +ist*ibution an+

*elease to the ,aa*ies of the i0ple0entin *ules an+ *eulations$ inclu+in

the ui+elines an+ 0echanis0s unilate*all# p*esc*ibe+ b# the O,e*siht

Co00ittee f*o0 ti0e to ti0e$ as sanctione+ b# the assaile+ p*o,isos in the

GAAs of 1888$ %%% an+ %%1 an+ the OC *esolutions$ 0a9es the *elease

not auto0atic$ a fla*ant ,iolation of the constitutional an+ statuto*#

0an+ate that the >=ust sha*e> of the -GUs >shall be auto0aticall# *elease+ to

the0.> The -GUs a*e$ thus$ place+ at the 0e*c# of the O,e*siht Co00ittee.

he*e the la$ the Constitution in this case$ is clea* an+ una0biuous$ it

0ust be ta9en to 0ean e/actl# hat it sa#s$ an+ cou*ts ha,e no choice but to

see to it that the 0an+ate is obe#e+.! Mo*eo,e*$ as co**ectl# posite+ b# the

petitione*$ the use of the o*+ >shall> connotes a 0an+ato*# o*+e*. (ts use in

a statute +enotes an i0pe*ati,e obliation an+ is inconsistent ith the i+ea of

+isc*etion.<

(n+ee+$ the O,e*siht Co00ittee e/e*cisin +isc*etion$ e,en cont*ol$ o,e* the

+ist*ibution an+ *elease of a po*tion of the (RA$ the -GSE)$ is an anathe0a to

an+ sub,e*si,e of the p*inciple of local autono0# as e0bo+ie+ in the

Constitution. Mo*eo,e*$ it fin+s no statuto*# basis at all as the O,e*siht

Co00ittee as c*eate+ 0e*el# to fo*0ulate the *ules an+ *eulations fo* the

efficient an+ effecti,e i0ple0entation of the -ocal Go,e*n0ent Co+e of 1881



to ensu*e >co0pliance ith the p*inciples of local autono0# as +efine+ un+e*

the Constitution.>8 (n fact$ its c*eation as place+ un+e* the title of

>T*ansito*# P*o,isions$> sinif#in its a+ hoc cha*acte*. Acco*+in to Senato*

A:uilino ?. Pi0entel$ the p*incipal autho* an+ sponso* of the bill that

e,entuall# beca0e Rep. Act No. !1%$ the Co00itteeKs o*9 as suppose+

to be +one a #ea* f*o0 the app*o,al of the Co+e$ o* on Octobe* 1%$ 188.% The O,e*siht Co00itteeKs autho*it# is un+oubte+l# li0ite+ to the

i0ple0entation of the -ocal Go,e*n0ent Co+e of 1881$ not to supplant o*

sub,e*t the sa0e. Neithe* can it e/e*cise cont*ol o,e* the (RA$ o* e,en a

po*tion the*eof$ of the -GUs.

That the auto0atic *elease of the (RA as p*ecisel# inten+e+ to ua*antee

an+ p*o0ote local autono0# can be leane+ f*o0 the +iscussion belo

beteen Mess*s. 3ose N. Nolle+o an+ Reala+o M. Maa0bon$ then 0e0be*s

of the 18< Constitutional Co00ission$ to it4

MR. MAAMBONG. Unfo*tunatel#$ un+e* Section 18< of the -ocal Go,e*n0ent

Co+e$ the e/istence of subp*o,inces is still ac9nole+e+ b# the la$ but the

state0ent of the Gentle0an on this point ill ha,e to be ta9en up p*obabl#

b# the Co00ittee on -eislation. A secon+ point$ M*. P*esi+in Office*$ is that

un+e* A*ticle $ Section 1% of the 18! Constitution$ e ha,e a p*o,ision

hich states4

The State shall ua*antee an+ p*o0ote the autono0# of local o,e*n0ent

units$ especiall# the ba**io$ to insu*e thei* fullest +e,elop0ent as selfF*eliant

co00unities.

This p*o,ision no lone* appea*s in the p*esent confiu*ation2 +oes this 0ean

that the concept of i,in local autono0# to local o,e*n0ents is no lone*

a+opte+ as fa* as this A*ticle is conce*ne+L

MR. NO--EO. No. (n the *epo*t of the Co00ittee on P*ea0ble$ National

Te**ito*#$ an+ ecla*ation of P*inciples$ that concept is inclu+e+ an+ i+ene+

upon the initiati,e of Co00issione* Bennaen.



MR. MAAMBONG. Than9 #ou fo* that.

ith *ea*+ to Section $ sou*ces of *e,enue$ the c*eation of sou*ces as

p*o,i+e+ b# p*e,ious la as >sub=ect to li0itations as 0a# be p*o,i+e+ b#

la$> but no$ e a*e usin the te*0 >sub=ect to such ui+elines as 0a# be

fi/e+ b# la.> (n Section !$ 0ention is 0a+e about the >uni:ue$ +istinct an+

e/clusi,e cha*es an+ cont*ibutions$> an+ in Section <$ e tal9 about

>e/clusi,it# of local ta/es an+ the sha*e in the national ealth.> (nci+entall#$ (

as one of the autho*s of this p*o,ision$ an+ ( a0 ,e*# than9ful. oes this

in+icate local autono0#$ o* as the o*+in of the la chane+ to i,e 0o*e

autono0# to the local o,e*n0ent unitsL1

MR. NO--EO. es. (n effect$ those o*+s in+icate also >+ecent*ali;ation>

because local political units can collect ta/es$ fees an+ cha*es sub=ect

0e*el# to ui+elines$ as *eco00en+e+ b# the leaue of o,e*no*s an+ cit#

0a#o*s$ ith ho0 ( ha+ a +ialoue fo* al0ost to hou*s. The# tol+ 0e that

li0itations 0a# be :uestionable in the sense that Con*ess 0a# li0it an+ in

effect +en# the *iht late* on.

MR. MAAMBONG. Also$ this p*o,ision on >auto0atic *elease of national ta/

sha*e> points to 0o*e local autono0#. (s this the intentionL

MR. NO--EO. es$ the Co00issione* is pe*fectl# *iht.

The concept of local autono0# as e/plaine+ in Gan;on ,. Cou*t of

Appeals in this ise4

As the Constitution itself +ecla*es$ local autono0# K0eans a 0o*e *esponsi,e

an+ accountable local o,e*n0ent st*uctu*e institute+ th*ouh a s#ste0 of

+ecent*ali;ation.K The Constitution$ as e obse*,e+$ +oes nothin 0o*e than

to b*ea9 up the 0onopol# of the national o,e*n0ent o,e* the affai*s of local

o,e*n0ents an+ as put b# political a+he*ents$ to >libe*ate the local

o,e*n0ents f*o0 the i0pe*ialis0 of Manila.> Autono0#$ hoe,e*$ is not

0eant to en+ the *elation of pa*tne*ship an+ inte*+epen+ence beteen the

cent*al a+0inist*ation an+ local o,e*n0ent units$ o* othe*ise$ to ushe* in a



*ei0e of fe+e*alis0. The Cha*te* has not ta9en such a *a+ical step. -ocal

o,e*n0ents$ un+e* the Constitution$ a*e sub=ect to *eulation$ hoe,e*

li0ite+$ an+ fo* no othe* pu*pose than p*ecisel#$ albeit pa*a+o/icall#$ to

enhance selfFo,e*n0ent.

As e obse*,e+ in one case$ +ecent*ali;ation 0eans +e,olution of national

a+0inist*ation but not poe* to the local le,els. Thus4

No$ autono0# is eithe* +ecent*ali;ation of a+0inist*ation o* +ecent*ali;ation

of poe*. The*e is +ecent*ali;ation of a+0inist*ation hen the cent*al

o,e*n0ent +eleates a+0inist*ati,e poe*s to political sub+i,isions in o*+e*

to b*oa+en the base of o,e*n0ent poe* an+ in the p*ocess to 0a9e local

o,e*n0ents K0o*e *esponsi,e an+ accountableK an+ Kensu*e thei* fullest

+e,elop0ent as selfF*eliant co00unities an+ 0a9e the0 0o*e effecti,e

pa*tne*s in the pu*suit of national +e,elop0ent an+ social p*o*ess.K At the

sa0e ti0e$ it *elie,es the cent*al o,e*n0ent of the bu*+en of 0anain

local affai*s an+ enables it to concent*ate on national conce*ns. The P*esi+ent

e/e*cises Kene*al supe*,isionK o,e* the0$ but onl# to Kensu*e that local

affai*s a*e a+0iniste*e+ acco*+in to la.K &e has no cont*ol o,e* thei* acts in

the sense that he can substitute thei* =u+0ents ith his on.

ecent*ali;ation of poe*$ on the othe* han+$ in,ol,es an ab+ication of

political poe* in the sic fa,o* of local o,e*n0ents sic units +ecla*e+ to

be autono0ous. (n that case$ the autono0ous o,e*n0ent is f*ee to cha*t its

on +estin# an+ shape its futu*e ith 0ini0u0 inte*,ention f*o0 cent*al

autho*ities. Acco*+in to a constitutional autho*$ +ecent*ali;ation of poe*

a0ounts to KselfFi00olation$K since in that e,ent$ the autono0ous

o,e*n0ent beco0es accountable not to the cent*al autho*ities but to its

constituenc#."

-ocal autono0# inclu+es both a+0inist*ati,e an+ fiscal autono0#. The fai*l#

*ecent case of Pi0entel ,. Aui**e5 is pa*ticula*l# inst*ucti,e. The Cou*t

+ecla*e+ the*ein that local fiscal autono0# inclu+es the poe* of the -GUs to$

inte* alia$ allocate thei* *esou*ces in acco*+ance ith thei* on p*io*ities4

Un+e* e/istin la$ local o,e*n0ent units$ in a++ition to ha,in

a+0inist*ati,e autono0# in the e/e*cise of thei* functions$ en=o# fiscal



autono0# as ell. )iscal autono0# 0eans that local o,e*n0ents ha,e the

poe* to c*eate thei* on sou*ces of *e,enue in a++ition to thei* e:uitable

sha*e in the national ta/es *elease+ b# the national o,e*n0ent$ as ell as

the poe* to allocate thei* *esou*ces in acco*+ance ith thei* on p*io*ities.

(t e/ten+s to the p*epa*ation of thei* bu+ets$ an+ local officials in tu*n ha,e

to o*9 ithin the const*aints the*eof. The# a*e not fo*0ulate+ at the nationalle,el an+ i0pose+ on local o,e*n0ents$ hethe* the# a*e *ele,ant to local

nee+s an+ *esou*ces o* not ...

)u*the*$ a basic featu*e of local fiscal autono0# is the constitutionall#

0an+ate+ auto0atic *elease of the sha*es of -GUs in the national inte*nal

*e,enue.!

)olloin this *atiocination$ the Cou*t in Pi0entel st*uc9 +on as

unconstitutional Section " of A+0inist*ati,e O*+e* 6A.O.7 No. ! hich

o*+e*e+ the ithhol+in$ effecti,e 3anua*# 1$ 188<$ of ten pe*cent of the

-GUsK (RA >pen+in the assess0ent an+ e,aluation b# the e,elop0ent

Bu+et Coo*+inatin Co00ittee of the e0e*in fiscal situation.>

(n li9e 0anne*$ the assaile+ p*o,isos in the GAAs of 1888$ %%% an+ %%1$

an+ the OC *esolutions constitute a >ithhol+in> of a po*tion of the (RA.

The# put on hol+ the +ist*ibution an+ *elease of the fi,e billion pesos -GSE)

an+ sub=ect the sa0e to the i0ple0entin *ules an+ *eulations$ inclu+in

the ui+elines an+ 0echanis0s p*esc*ibe+ b# the O,e*siht Co00ittee f*o0

ti0e to ti0e. -i9e Section " of A.O. !$ the assaile+ p*o,isos in the GAAs of

1888$ %%% an+ %%1 an+ the OC *esolutions effecti,el# enc*oach on the

fiscal autono0# en=o#e+ b# the -GUs an+ 0ust be st*uc9 +on. The# cannot$

the*efo*e$ be uphel+.

The assaile+ p*o,isos in the GAAs of 1888$ %%%

an+ %%1 an+ the OC *esolutions cannot a0en+

Section <5 of the -ocal Go,e*n0ent Co+e of 1881



Section <"< of the -ocal Go,e*n0ent Co+e p*o,i+es that$ beinnin the

thi*+ #ea* of its effecti,it#$ the -GUsK sha*e in the national inte*nal *e,enue

ta/es shall be "%I. This pe*centae is fi/e+ an+ 0a# not be *e+uce+ e/cept

>in the e,ent the national o,e*n0ent incu*s an un0anaeable public secto*+eficit> an+ onl# upon co0pliance ith st*inent *e:ui*e0ents set fo*th in the

sa0e section4

Sec. <". ...

P*o,i+e+$ That in the e,ent that the national o,e*n0ent incu*s an

un0anaeable public secto* +eficit$ the P*esi+ent of the Philippines is he*eb#

autho*i;e+$ upon *eco00en+ation of Sec*eta*# of )inance$ Sec*eta*# of(nte*io* an+ -ocal Go,e*n0ent an+ Sec*eta*# of Bu+et an+ Manae0ent$

an+ sub=ect to consultation ith the p*esi+in office*s of both &ouses of

Con*ess an+ the p*esi+ents of the lia$ to 0a9e the necessa*# a+=ust0ents

in the inte*nal *e,enue allot0ent of local o,e*n0ent units but in no case

shall the allot0ent be less than thi*t# pe*cent 6%I7 of the collection of the

national inte*nal *e,enue ta/es of the thi*+ fiscal #ea* p*ece+in the cu**ent

fiscal #ea*2 P*o,i+e+$ fu*the* That in the fi*st #ea* of the effecti,it# of this

Co+e$ the local o,e*n0ent units shall$ in a++ition to the thi*t# pe*cent 6%I7

inte*nal *e,enue allot0ent hich shall inclu+e the cost of +e,ol,e+ functions

fo* essential public se*,ices$ be entitle+ to *ecei,e the a0ount e:ui,alent tothe cost of +e,ol,e+ pe*sonnel se*,ices.

Thus$ f*o0 the abo,e p*o,ision$ the onl# possible e/ception to the 0an+ato*#

auto0atic *elease of the -GUsK (RA is if the national inte*nal *e,enue

collections fo* the cu**ent fiscal #ea* is less than "% pe*cent of the collections

of the p*ece+in thi*+ fiscal #ea*$ in hich case hat shoul+ be auto0aticall#

*elease+ shall be a p*opo*tionate a0ount of the collections fo* the cu**ent

fiscal #ea*. The a+=ust0ent 0a# e,en be 0a+e on a :ua*te*l# basis

+epen+in on the actual collections of national inte*nal *e,enue ta/es fo* the:ua*te* of the cu**ent fiscal #ea*. (n the instant case$ hoe,e*$ the*e is no

alleation that the national inte*nal *e,enue ta/ collections fo* the fiscal

#ea*s 1888$ %%% an+ %%1 ha,e fallen co0pa*e+ to the p*ece+in th*ee

fiscal #ea*s.



Section <5 then specifies ho the (RA shall be allocate+ a0on the -GUs4

Sec. <5. Allocation to -ocal Go,e*n0ent Units. The sha*e of local

o,e*n0ent units in the inte*nal *e,enue allot0ent shall be allocate+ in the

folloin 0anne*4

6a7 P*o,inces Tent#Fth*ee 6I7

6b7 Cities Tent#Fth*ee pe*cent 6I72

6c7 Municipalities Thi*t#Ffou* 6"I72 an+

6+7 Ba*ana#s Tent# pe*cent 6%I7.

&oe,e*$ this pe*centae sha*in is not folloe+ ith *espect to the fi,e

billion pesos -GSE) as the assaile+ OC *esolutions$ i0ple0entin the

assaile+ p*o,isos in the GAAs of 1888$ %%% an+ %%1$ p*o,i+e+ fo* a

+iffe*ent sha*in sche0e. )o* e/a0ple$ fo* 1888$ P billion of the -GSE) asallocate+ as follos4 P*o,inces "%I2 Cities %I2 Municipalities "%I.8

)o* %%%$ P.5 billion of the -GSE) as allocate+ in this 0anne*4 P*o,inces

I2 Cities I2 Municipalities 5I2 Ba*ana#s I."% )o* %%1$ P

billion of the -GSE) as allocate+$ thus4 P*o,inces 5I2 Cities 5I2

Municipalities 5I2 Ba*ana#s 15I."1

The *espon+ents a*ue that this 0o+ification is alloe+ since the Constitution

+oes not specif# that the >=ust sha*e> of the -GUs shall onl# be +ete*0ine+ b#

the -ocal Go,e*n0ent Co+e of 1881. That it is ithin the poe* of Con*essto enact othe* las$ inclu+in the GAAs$ to inc*ease o* +ec*ease the >=ust

sha*e> of the -GUs. This contention is untenable. The -ocal Go,e*n0ent Co+e

of 1881 is a substanti,e la. An+ hile it is conce+e+ that Con*ess 0a#

a0en+ an# of the p*o,isions the*ein$ it 0a# not +o so th*ouh app*op*iations

las o* GAAs. An# a0en+0ent to the -ocal Go,e*n0ent Co+e of 1881 shoul+

be +one in a sepa*ate la$ not in the app*op*iations la$ because Con*ess

cannot inclu+e in a ene*al app*op*iation bill 0atte*s that shoul+ be 0o*e



p*ope*l# enacte+ in a sepa*ate leislation."

A ene*al app*op*iations bill is a special t#pe of leislation$ hose content is

li0ite+ to specifie+ su0s of 0one# +e+icate+ to a specific pu*pose o* a

sepa*ate fiscal unit." An# p*o,ision the*ein hich is inten+e+ to a0en+

anothe* la is consi+e*e+ an >inapp*op*iate p*o,ision.> The cateo*# of

>inapp*op*iate p*o,isions> inclu+es unconstitutional p*o,isions an+ p*o,isions

hich a*e inten+e+ to a0en+ othe* las$ because clea*l# these 9in+s of las

ha,e no place in an app*op*iations bill.""

(nc*easin o* +ec*easin the (RA of the -GUs o* 0o+if#in thei* pe*centae

sha*in the*ein$ hich a*e fi/e+ in the -ocal Go,e*n0ent Co+e of 1881$ a*e

0atte*s of ene*al an+ substanti,e la. To pe*0it Con*ess to un+e*ta9e

these a0en+0ents th*ouh the GAAs$ as the *espon+ents conten+$ oul+ be

to i,e Con*ess the unb*i+le+ autho*it# to un+ul# inf*ine the fiscal

autono0# of the -GUs$ an+ thus put the sa0e in =eopa*+# e,e*# #ea*. This$

the Cou*t cannot sanction.

(t is *ele,ant to point out at this =unctu*e that$ unli9e those of 1888$ %%% an+

%%1$ the GAAs of %% an+ %% +o not contain p*o,isos si0ila* to the

he*ein assaile+ p*o,isos. (n othe* o*+s$ the GAAs of %% an+ %% ha,e not

ea*0a*9e+ an# a0ount of the (RA fo* the -GSE). Con*ess ha+ pe*haps seen

fit to +iscontinue the p*actice as it *econi;es its infi*0it#. Nonetheless$ as

ea*lie* 0entione+$ this Cou*t has +ee0e+ it necessa*# to 0a9e a +efiniti,e

*ulin on the 0atte* in o*+e* to p*e,ent its *ecu**ence in futu*e app*op*iations

las an+ that the p*inciples enunciate+ he*ein oul+ se*,e to ui+e the

bench$ ba* an+ public.

Conclusion

(n closin$ it is ell to note that the p*inciple of local autono0#$ hile

conce+e+l# e/poun+e+ in *eate* +etail in the p*esent Constitution$ +ates

bac9 to the tu*n of the centu*# hen P*esi+ent illia0 McHinle#$ in his

(nst*uctions to the Secon+ Philippine Co00ission +ate+ Ap*il !$ 18%%$ o*+e*e+

the ne Go,e*n0ent >to +e,ote thei* attention in the fi*st instance to the

establish0ent of 0unicipal o,e*n0ents in hich the nati,es of the (slan+s$

both in the cities an+ in the *u*al co00unities$ shall be affo*+e+ the



oppo*tunit# to 0anae thei* on affai*s to the fullest e/tent of hich the# a*e

capable$ an+ sub=ect to the least +e*ee of supe*,ision an+ cont*ol in hich a

ca*eful stu+# of thei* capacities an+ obse*,ation of the o*9ins of nati,e

cont*ol sho to be consistent ith the 0aintenance of la$ o*+e* an+

lo#alt#.>"5 hile the 185 Constitution ha+ no specific a*ticle on local

autono0#$ nonetheless$ it li0ite+ the e/ecuti,e poe* o,e* localo,e*n0ents to >ene*al supe*,ision ... as 0a# be p*o,i+e+ b# la.>"

Subse:uentl#$ the 18! Constitution e/plicitl# state+ that >the State shall

ua*antee an+ p*o0ote the autono0# of local o,e*n0ent units$ especiall#

the ba*ana# to ensu*e thei* fullest +e,elop0ent as selfF*eliant

co00unities.>"! An enti*e a*ticle on -ocal Go,e*n0ent as inco*po*ate+

the*ein. The p*esent Constitution$ as ea*lie* opine+$ has b*oa+ene+ the

p*inciple of local autono0#. The 1" sections in A*ticle D the*eof 0a*9e+l#

inc*ease+ the poe*s of the local o,e*n0ents in o*+e* to acco0plish the

oal of a 0o*e 0eaninful local autono0#.

(n+ee+$ the ,alue of local o,e*n0ents as institutions of +e0oc*ac# is

0easu*e+ b# the +e*ee of autono0# that the# en=o#."< As elo:uentl# put b#

M. e Toc:ue,ille$ a +istinuishe+ )*ench political *ite*$ >local asse0blies

of citi;ens constitute the st*enth of f*ee nations. Tonship 0eetins a*e to

libe*t# hat p*i0a*# schools a*e to science2 the# b*in it ithin the peopleKs

*each2 the# teach 0en ho to use an+ en=o# it. A nation 0a# establish a

s#ste0 of f*ee o,e*n0ents but ithout the spi*it of 0unicipal institutions$ itcannot ha,e the spi*it of libe*t#.>"8

Ou* national officials shoul+ not onl# co0pl# ith the constitutional

p*o,isions on local autono0# but shoul+ also app*eciate the spi*it an+ libe*t#

upon hich these p*o,isions a*e base+.5%

&ERE)ORE$ the petition is GRANTE. The assaile+ p*o,isos in the Gene*al

App*op*iations Acts of 1888$ %%% an+ %%1$ an+ the assaile+ OC

Resolutions$ a*e +ecla*e+ UNCONST(TUT(ONA-.

SO ORERE.



ROMEO 3. CA--E3O$ SR.

Associate 3ustice

E CONCUR4

On official lea,e

&(-AR(O G. A'(E$ 3R.

Chief 3ustice

On official lea,e

RENATO S. PUNO 3OSE C. '(TUG

Associate 3ustice Associate 3ustice

ARTEM(O '. PANGAN(BAN -EONARO A. ?U(SUMB(NG


CONSUE-O NARESFSANT(AGO ANGE-(NA SANO'A-FGUT(ERRE@


ANTON(O T. CARP(O MA. A-(C(A AUSTR(AFMART(NE@


RENATO C. CORONA CONC&(TA CARP(O MORA-ES




AO-)O S. A@CUNA ANTE O. T(NGA


C E R T ( ) ( C A T ( O N

Pu*suant to Section 1$ A*ticle '((( of the Constitution$ it is he*eb# ce*tifie+

that the conclusions in the abo,e +ecision e*e *eache+ in consultation

befo*e the case as assine+ to the *ite* of the opinion of the Cou*t.

3OSE C. '(TUG

Actin Chief 3ustice

)ootnotes

1 Section 1$ E.O. No. "<.

Section $ i+.

Section "$ i+.

" (bi+.

5 (+.



(+.

! (+.

< (nf*a.

8 Ba9e* ,. Ca**$ 8 U.S. 1<$ ! -.E+. + cite+ in$ a0on othe*s$ Aan$ 3*.

,. P(ATCO$ G.R. Nos. 155%%1$ 1555"! an+ 1551$ Ma# 5$ %% an+ )a*ias ,.

E/ecuti,e Sec*eta*#$ G.R. Nos. 1"!<! an+ 1511$ ece0be* 1%$ %%.

1% Aan$ 3*. ,. P(ATCO$ sup*a.

11 (bi+.

1 (+. 1 Cha,e; ,. Public Estates Autho*it#$ <" SCRA 15 6%%7.

1" (bi+$ citin$ a0on othe*s$ Salona ,. Pao$ 1" SCRA "< 618857.

15 Southe*n Pac. Te*0inal Co. ,. (CC$ 18 U.S. "8<$ 55 -.E+. 1% 618117 cite+

in$ a0on othe*s$ 'iola ,. Alunan ((($ !! SCRA "%8 6188!72 Acop ,. Guinona$

3*.$ < SCRA 5!! 6%%7.

1 San 3uan ,. Ci,il Se*,ice Co00ission$ 18 SCRA 8 618817.

1! Section "$ A*ticle D.

1< 5 SCRA 15 6188"7.



18 (+. at 1".

% Rep. Act No. !1% as sine+ into la b# then P*esi+ent Co*a;on C.A:uino on Octobe* 1%$ 1881. (t too9 effect on 3anua*# 1$ 188.

1 Section $ A*ticle D *ea+s4

Sec. . The Con*ess shall enact a local o,e*n0ent co+e hich shall p*o,i+e

fo* a 0o*e *esponsi,e an+ accountable local o,e*n0ent st*uctu*e institute+

th*ouh a s#ste0 of +ecent*ali;ation ith effecti,e 0echanis0s of *ecall$initiati,e$ an+ *efe*en+u0$ allocate a0on the +iffe*ent local o,e*n0ent

units thei* poe*s$ *esponsibilities$ an+ *esou*ces$ an+ p*o,i+e fo* the

:ualifications$ election$ appoint0ent an+ *e0o,al$ te*0s$ sala*ies$ poe*s

an+ functions an+ +uties of local officials$ an+ all othe* 0atte*s *elatin to the

o*ani;ation an+ ope*ation of local o,e*n0ent units.

SCRA %1 6%%%7.

(+. at %F1. 6E0phasis supplie+.7

" Pe* OCF88F%%5$ 88F%%$ 88F%%.

5 Pe* OCF%%%F% an+ %%1F%8.

Pe* OCF%%F%%1.

! ?uisu0bin ,. Manila Elect*ic Co.$ <% SCRA 185 6%%7.



< Co+o# ,. Calua#$ 1 SCRA 618887.

8 Section 5 of Rep. Act !1% *ea+s in pa*t4

Sec. 5. )o*0ulation of (0ple0entin Rules an+ Reulations. 6a7 ithin one

617 0onth afte* the app*o,al of this Co+e$ the P*esi+ent shall con,ene the

O,e*siht Co00ittee as he*ein p*o,i+e+ fo*. The sai+ Co00ittee shall

fo*0ulate an+ issue the app*op*iate *ules an+ *eulations necessa*# fo* the

efficient an+ effecti,e i0ple0entation of an# an+ all p*o,isions of this Co+e$

the*eb# ensu*in co0pliance ith the p*inciples of local autono0# as +efine+

un+e* the Constitution.

...

6c7 The Co00ittee shall sub0it its *epo*t an+ *eco00en+ation to the

P*esi+ent ithin to 67 0onths afte* its o*ani;ation. (f the P*esi+ent fails to

act ithin thi*t# 6%7 +a#s f*o0 *eceipt the*eof$ the *eco00en+ation of the

O,e*siht Co00ittee shall be +ee0e+ app*o,e+. The*eafte*$ the Co00ittee

shall supe*,ise the t*ansfe* of such poe*s an+ functions 0an+ate+ un+e*

this Co+e to the local o,e*n0ent units$ toethe* ith the co**espon+in

pe*sonnel$ p*ope*ties$ assets an+ liabilities of the offices o* aenciesconce*ne+$ ith the least possible +is*uptions to e/istin p*o*a0s an+

p*o=ects. The Co00ittee shall$ li9eise$ *eco00en+ the co**espon+in

app*op*iations necessa*# to effect the sai+ t*ansfe*.

% Pi0entel$ The -ocal Go,e*n0ent Co+e of 18814 The He# to National

e,elop0ent$ p. 5!.

1 The Co00ittee Repo*t No. 1 sub0itte+ b# the Co00ittee on -ocal

Go,e*n0ents of the Constitutional Co00ission$ hea+e+ b# Co00issione*

3ose N. Nolle+o$ p*opose+ to inco*po*ate the folloin p*o,isions4

SEC. . Each o,e*n0ent unit shall ha,e the poe* to c*eate its on sou*ces

of *e,enue an+ to le,# ta/es$ fees an+ cha*es sub=ect to such ui+elines as



0a# be fi/e+ b# la.

SEC. !. -ocal o,e*n0ents shall ha,e the poe* to le,# an+ collect cha*es

o* cont*ibutions uni:ue$ +istinct an+ e/clusi,e to the0.

SEC. <. -ocal ta/es shall belon e/clusi,el# to local o,e*n0ents an+ the#

shall$ li9eise$ be entitle+ to sha*e in the p*ocee+s of the e/ploitation an+

+e,elop0ent of the national ealth ithin thei* *especti,e a*eas. The sha*e

of local o,e*n0ents in the national ta/es shall be *elease+ to the0

auto0aticall#.

RECOR O) T&E CONST(TUT(ONA- COMM(SS(ON 1.

%% SCRA !1 618817.

" (+. at <F<!. 6Citations o0itte+.7

5 Sup*a at note .

(+. at 1<.

! (+. at %.

< The p*o,ision *ea+s in pa*t4

Sec. <". Allot0ent of (nte*nal Re,enue Ta/es. -ocal o,e*n0ent units shall

ha,e a sha*e in the national inte*nal *e,enue ta/es base+ on the collection of

the thi*+ fiscal #ea* p*ece+in the cu**ent fiscal #ea* as follos4



6a7 On the fi*st #ea* of the effecti,it# of this Co+e$ thi*t# pe*cent 6%I72

6b7 On the secon+ #ea*$ thi*t#Ffi,e pe*cent 65I72 an+

6c7 On the thi*+ #ea* an+$ the*eafte*$ fo*t# pe*cent 6"%I7.

8 Pe* OC Res.F88F%%5$ 88F%%$ 88F%%.

"% Pe* OCF%%%F% an+ %%1F%8.

"1 Pe* OCF%%F%%1.

" Philippine Constitutional Association ,. En*i:ue;$ 5 SCRA 5% 6188"7.

" (bi+$ citin Bec90an$ The (te0 'eto Poe* of the E/ecuti,e$ 1 Te0ple

-a ?ua*te*l# ! 6185!7.

"" (+.

"5 Men+o;a$ )*o0 McHinle#Ks (nst*uctions to the Ne Constitution4

ocu0ents on the Philippine Constitutional S#ste0$ pp. !F<.

" Pa*a*aph 617$ Section 11$ A*ticle '(( of the 185 Constitution *ea+s4

Sec. 11617. The P*esi+ent shall ha,e cont*ol of all the e/ecuti,e +epa*t0ents$

bu*eaus o* offices$ e/e*cise ene*al supe*,ision o,e* all local o,e*n0ents as

0a# be p*o,i+e+ b# la$ an+ ta9e ca*e that the las be faithfull# e/ecute+.



"! Section 1%$ A*ticle (( the*eof.

"< Sinco$ Philippine Political -a$ 1%th e+.$ pp. <1F<.

"8 (bi+.

5% San 3uan ,. Ci,il Se*,ice Co00ission$ sup*a.

Documents

Province of Batangas v. Romulo.rtf