PRESIDENT Ferdinand Marcos Jr. yesterday signed into law Republic Act 12233, or the Judiciary Fiscal Autonomy Act, institutionalizing the judicial branch’s fiscal autonomy as enshrined in the Constitution.
The law is a consolidation of Senate Bill No. 2982 and House Bill No. 11358. The signing ceremony was held in Malacañang and was attended, among others, by Chief Justice Alexander Gesmundo, Senate President Francis Escudero, Speaker Martin Romualdez, former president and now Pampanga Rep. Gloria Macapagal-Arroyo, and Executive Secretary Lucas Bersamin.
The new law, which was approved in the previous 19th Congress, defines the scope and extent of the Judiciary’s fiscal independence.
Marcos said the new law seeks to empower the Judiciary to fully exercise its constitutional fiscal autonomy and allow it to operate more efficiently and deliver justice to the people more effectively.
“Today, through the signing of the Judiciary Fiscal Autonomy Act, we are putting safeguards in place so that the Judiciary can work more efficiently and more independently. Our Constitution already mandates: ‘The Judiciary shall enjoy fiscal autonomy. Appropriations for the Judiciary may not be reduced by the legislature below the amount appropriated for the previous year, and, after approval, shall be automatically and regularly released’. And this is why we continue to help the Judiciary become secure in its resources and perform its duty to serve our people without any delay,” he said.
The Judiciary, prior to the enactment of the law, has said that despite the constitutional provision, its budgetary needs have constantly remained unmet due to the complexities of the budget process, impacting heavily on its operations and modernization efforts.
Marcos said RA 12233 ensures that the annual budget of the judicial branch will not be lower than its appropriations from previous years, as well as guarantees the timely and regular release of funding to ensure its smooth, uninterrupted and efficient service.
The law mandates the Supreme Court to submit its annual budget proposal directly to the Department of Budget and Management (DBM), with the original proposal attached to the National Expenditure Program (NEP) which Congress reviews.
While the law allows the DBM to issue comments and recommendations, it provides that “approved appropriations must be released automatically without the need for additional requests or conditions.”
It likewise grants the Chief Justice, as the head of the Judiciary, the authority to augment budget items from savings, reallocate allotments within projects, and modify fund distribution between operating units.
In place of the old Judiciary Development Fund (JDF), the law creates the Judiciary Trust Fund, where all legal fees, existing funds, and interest income for the Judiciary’s exclusive use will be pooled to give it an additional source of funds to finance operations and improvements, on top of the annual appropriations it receives from Congress.
The law also empowers the Supreme Court “to reorganize its administrative structure, create new offices, and decentralize operations to bring court management closer to litigants.”
The High court likewise is allowed to determine the number and positions of court personnel, set compensation levels within budget limits, and ensure competitive pay to attract and retain qualified staff.
All Judiciary-related real and personal properties will be transferred to the SC within six months from the law’s effectivity, to give the it “direct control over assets essential to its functions.”
To promote and ensure transparency, all revenues and expenditures of the Judiciary, including those from the Judiciary Trust Fund, will be subject to post-audit by the Commission on Audit (COA).
The Judiciary is also required to submit quarterly reports to the President and Congress on how it used its funds.
“This is how we promote transparency and accountability. This is how we do checks and balances. This is how democracy works – by respecting the role each branch plays, while exercising our duty to ensure that no branch acts beyond what the Constitution allows,” Marcos said.
“We recognize that each of us has a unique role, and yet we also have a shared responsibility to uplift Filipino people. Above all, let us always remember that even our smallest decisions can shape the lives of very many people and the future of the nation. This administration is committed to respecting the autonomy and authority of the Supreme Court as it discharges its constitutional duty to interpret the highest law of the land. This commitment thus calls on us to stay true to our Constitution, to champion integrity and fairness, and implement laws with prudence and foresight,” he also said.
The law also allows the Judiciary to address shortages in its workforce as it requires the DBM to act within 120 days on any and all SC request/s for the issuance of a Notice of Organization, Staffing, and Compensation Action (NOSCA) for newly created positions.
The SC has six months to come up with the implementing rules and regulations to effectively implement the law.
FISCAL LEEWAY
Romualdez said the Judiciary Fiscal Autonomy Act will give the Judiciary more financial flexibility to “further strengthen judicial independence and improve the delivery of justice across the nation.”
“This is a proud day for our justice system,” Romualdez said. “It is a vital step to ensure that our courts are equipped, empowered, and shielded from undue influence, in full service of the rule of law.”
Romualdez, who was among the law’s principal authors, said ensuring that the Judiciary will have fiscal autonomy under the law has long been his advocacy in the 19th Congress.
“It’s meant to allow our Judiciary to move freely while serving as the pillar of justice to our people,” he said in Filipino.
The Speaker thanked the President for supporting and signing the measure into law, saying “it reflects the administration’s commitment to a stronger and more independent judiciary.”
