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ISSUE: 1.Whether or not the DAP violates Sec. 29, Art. VI of the 1987 Constitution, which provides: "No money shall be paid out of the Treasury except in pursuance of an appropriation made by law." 2. Whether or not the DAP, NBC No. 541, and all other execu
FACTS: Senator Jinggoy Estrada, in his privileged speech, revealed that some senators had been allotted an additional PHP50 million each as incentive for voting in favor of the impeachment of Chief Justice Corona. As a response, Department of Budget and Management Secretary Abad explained that the funds released had been part of the DAP, a program designed by the DBM to ramp up spending to accelerate economic expansion. The DAP is a stimulus package intended to fast track public spending and to push economic growth by investing on high-impact budgetary programs, activities, or projects to be funded from the savings generated during the year as well as from unprogrammed funds. Petitioners contend that the appropriations funded under the DAP, being an appropriation that set aside public funds for public use, should require an enabling law for its validity. Petitioners also question the constitutionality of such realignments and transfers pursuant to Section 25 (5) Article VI of the 1987 Constitution.
DECISION: 1.No. The SC held that the DAP did not violate this constitutional provision. 2.Disbursement Acceleration Program, National Budget Circular No. 541 and related executive declared UNCONSTITUTIONAL.
RATIO DECIDENDI: 1.DAP was merely a program of the Executive and is not a fund nor is it an appropriation. It is a program for prioritizing government spending. As such, no additional funds were withdrawn from the Treasury; otherwise, an appropriation law would have been signed. Funds already appropriated were merely realigned. 2. DAP being in violation of Section 25(5), Article VI of the 1987 Constitution and the doctrine of separation of powers, namely: (a) The withdrawal of unobligated allotments from the implementing agencies, and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year and without complying with the statutory definition of savings contained in the General Appropriations Acts; (b) The cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive; and (c) The funding of projects, activities and programs that were not covered by any appropriation in the General Appropriations Act.