GR 144256; (June, 2005) (Digest)
G.R. No. 144256. June 8, 2005.
ALTERNATIVE CENTER FOR ORGANIZATIONAL REFORMS AND DEVELOPMENT, INC. (ACORD), ET AL., petitioners, vs. HON. RONALDO ZAMORA, in his capacity as Executive Secretary, ET AL., respondents.
FACTS
Pursuant to the Constitution, then President Joseph Estrada submitted the National Expenditure Program for FY 2000, proposing an Internal Revenue Allotment (IRA) of ₱121.778 billion, computed at 40% of national internal revenue taxes as mandated by Section 284 of the Local Government Code (LGC). However, the subsequently enacted General Appropriations Act (GAA) of 2000 appropriated only ₱111.778 billion as the programmed IRA. A separate ₱10 billion for the IRA was placed under the “Unprogrammed Fund” section of the GAA, which by its terms was to be released only if the original revenue targets submitted by the President were realized based on a quarterly assessment by specified congressional committees and the Development Budget Coordinating Committee.
Petitioners, comprising various non-governmental organizations, people’s organizations, and barangay officials, filed this petition. They argued that the conditional appropriation of the ₱10 billion IRA under the Unprogrammed Fund effectively reduced the mandatory 40% share of local government units (LGUs) as fixed by the LGC, violating the Constitution and the LGC’s automatic release mechanism.
ISSUE
Whether the Congress, through the GAA, can validly appropriate a portion of the LGUs’ mandatory IRA share under the “Unprogrammed Fund” category, making its release conditional upon the realization of revenue targets.
RULING
No. The Supreme Court granted the petition, declaring the conditional appropriation of the ₱10 billion IRA under the Unprogrammed Fund void. The legal logic is anchored on the hierarchical relationship between the LGC, a substantive law, and the GAA, a general appropriations law. Section 284 of the LGC mandates that LGUs shall have a share of 40% of national internal revenue taxes, a mandatory allocation. This creates a vested right for LGUs to an automatic release, as reinforced by Section 286 of the LGC, which prohibits any holdback on the IRA except for specific statutory exceptions.
The GAA cannot amend or supersede this substantive mandate. By placing a portion of the constitutionally and statutorily guaranteed IRA under an Unprogrammed Fund with a conditional release mechanism, Congress effectively imposed an additional requirement not found in the LGC. This act contravened the clear statutory command for automatic release. The power of the purse, while broad, must be exercised within the bounds of existing laws. Since the LGC specifically defines and guarantees the IRA, the GAA’s conditional appropriation for that same IRA constitutes an impermissible infringement. The ₱10 billion must therefore be released to the LGUs as part of their mandatory and automatic share.