G.R. No.

94571 April 22, 1991 of Relent and Guaranteed Loan by Appropriating

TEOFISTO T. GUINGONA, JR. and AQUILINO Q. Funds For The Purpose.
PIMENTEL, JR., petitioners, There can be no question that petitioners as Senators
vs. of the Republic of the Philippines may bring this suit
HON. GUILLERMO CARAGUE, in his capacity as where a constitutional issue is raised.3 Indeed, even a
Secretary, Budget & Management, HON. ROZALINA taxpayer has personality to restrain unlawful
S. CAJUCOM in her capacity as National Treasurer expenditure of public funds.
and COMMISSION ON AUDIT, respondents. The petitioner seek the declaration of the
Ramon A. Gonzales for petitioners. unconstitutionality of P.D. No. 81, Sections 31 of P.D.
1177, and P.D. No. 1967. The petition also seeks to
GANCAYCO, J.: restrain the disbursement for debt service under the
This is a case of first impression whereby petitioners 1990 budget pursuant to said decrees.
question the constitutionality of the automatic Respondents contend that the petition involves a pure
appropriation for debt service in the 1990 budget. political question which is the repeal or amendment of
As alleged in the petition, the facts are as follows: said laws addressed to the judgment, wisdom and
The 1990 budget consists of P98.4 Billion in automatic patriotism of the legislative body and not this Court.
appropriation (with P86.8 Billion for debt service) and In Gonzales,5 the main issue was the
P155.3 Billion appropriated under Republic Act No. unconstitutionality of the presidential veto of certain
6831, otherwise known as the General Appropriations provision particularly Section 16 of the General
Act, or a total of P233.5 Billion,1 while the Appropriations Act of 1990, R.A. No. 6831. This Court,
appropriations for the Department of Education, in disposing of the issue, stated
Culture and Sports amount to P27,017,813,000.00.2 The political question doctrine neither interposes an
The said automatic appropriation for debt service is obstacle to judicial determination of the rival claims.
authorized by P.D. No. 81, entitled "Amending Certain The jurisdiction to delimit constitutional boundaries has
Provisions of Republic Act Numbered Four Thousand been given to this Court. It cannot abdicate that
Eight Hundred Sixty, as Amended (Re: Foreign obligation mandated by the 1987 Constitution,
Borrowing Act)," by P.D. No. 1177, entitled "Revising although said provision by no means does away with
the Budget Process in Order to Institutionalize the the applicability of the principle in appropriate cases.
Budgetary Innovations of the New Society," and by Sec. 1. The judicial power shad be vested in one
P.D. No. 1967, entitled "An Act Strenghthening the Supreme Court and in such lower courts as may be
Guarantee and Payment Positions of the Republic of established by law.
the Philippines on Its Contingent Liabilities Arising out Judicial power includes the duty of the courts of justice
1
to settle actual controversies involving rights which are every President and every Congress of the Philippines
legally demandable and enforceable, and to determine since the end of World War II for the economic welfare
whether or not there has been a grave abuse of of the public schoolteachers always ended up in failure
discretion amounting to lack or excess of jurisdiction and this failure, he stated, had caused mass defection
on the part of any branch or instrumentality of the of the best and brightest teachers to other careers,
Government. including menial jobs in overseas employment and
With the Senate maintaining that the President's veto concerted actions by them to project their grievances,
is unconstitutional and that charge being controverted, mainly over low pay and abject working conditions.
there is an actual case or justiciable controversy He pointed to the high expectations generated by the
between the Upper House of Congress and the February Revolution, especially keen among public
executive department that may be taken cognizance of schoolteachers, which at present exacerbate these
by this Court. long frustrated hopes.
The questions raised in the instant petition are Mr. Ople stated that despite the sincerity of all
I. IS THE APPROPRIATION OF P86 BILLION IN THE administrations that tried vainly to respond to the
P233 BILLION 1990 BUDGET VIOLATIVE OF needs of the teachers, the central problem that always
SECTION 5, ARTICLE XIV OF THE CONSTITUTION? defeated their pious intentions was really the one
II. ARE PD No. 81, PD No. 1177 AND PD No. 1967 budgetary priority in the sense that any proposed
STILL OPERATIVE UNDER THE CONSTITUTION? increase for public schoolteachers had to be multiplied
III. ARE THEY VIOLATIVE OF SECTION 29(l), many times by the number of government employees
ARTICLE VI OF THE CONSTITUTION?6 in general and their equitable claims to any pay
There is thus a justiciable controversy raised in the standardization such that the pay rate of teachers is
petition which this Court may properly take cognizance hopelessly pegged to the rate of government workers
of On the first issue, the petitioners aver in general. This, he stated, foredoomed the prospect of
According to Sec. 5, Art. XIV of the Constitution: a significant pay increase for teachers.
(5) The State shall assign the highest budgetary Mr. Ople pointed out that the recognition by the
priority to education and ensure that teaching will Constitution of the highest priority for public
attract and retain its rightful share of the best available schoolteachers, and by implication, for all teachers,
talents through adequate remuneration and other would ensure that the President and Congress would
means of job satisfaction and fulfillment. be strongly urged by a constitutional mandate to grant
The reason behind the said provision is stated, thus: to them such a level of remuneration and other
In explaining his proposed amendment, Mr. Ople incentives that would make teaching competitive again
stated that all the great and sincere piety professed by and attractive to the best available talents in the nation.
2
Finally, Mr. Ople recalled that before World War II, and for the attainment of other state policies or
teaching competed most successfully against all other objectives.
career choices for the best and the brightest of the As aptly observed by respondents, since 1985, the
younger generation. It is for this reason, he stated, that budget for education has tripled to upgrade and
his proposed amendment if approved, would ensure improve the facility of the public school system. The
that teaching would be restored to its lost glory as the compensation of teachers has been doubled. The
career of choice for the most talented and most public- amount of P29,740,611,000.008 set aside for the
spirited of the younger generation in the sense that it Department of Education, Culture and Sports under
would become the countervailing measure against the the General Appropriations Act (R.A. No. 6831), is the
continued decline of teaching and the wholesale highest budgetary allocation among all department
desertion of this noble profession presently taking budgets. This is a clear compliance with the aforesaid
place. He further stated that this would ensure that the constitutional mandate according highest priority to
future and the quality of the population would be education.
asserted as a top priority against many clamorous and Having faithfully complied therewith, Congress is
importunate but less important claims of the present. certainly not without any power, guided only by its
(Journal of the Constitutional Commission, Vol. II, p. good judgment, to provide an appropriation, that can
1172) reasonably service our enormous debt, the greater
However, as against this constitutional intention, P86 portion of which was inherited from the previous
Billion is appropriated for debt service while only P27 administration. It is not only a matter of honor and to
Billion is appropriated for the Department of Education protect the credit standing of the country. More
in the 1990 budget. It plain, therefore, that the said especially, the very survival of our economy is at stake.
appropriation for debt services is inconsistent with the Thus, if in the process Congress appropriated an
Constitution, hence, viod (Art. 7, New Civil Code).7 amount for debt service bigger than the share
While it is true that under Section 5(5), Article XIV of allocated to education, the Court finds and so holds
the Constitution Congress is mandated to "assign the that said appropriation cannot be thereby assailed as
highest budgetary priority to education" in order to unconstitutional.
"insure that teaching will attract and retain its rightful Now to the second issue. The petitioners made the
share of the best available talents through adequate following observations:
remuneration and other means of job satisfaction and To begin with, Rep. Act 4860 entitled "AN ACT
fulfillment," it does not thereby follow that the hands of AUTHORIZING THE PRESIDENT OF THE
Congress are so hamstrung as to deprive it the power PHILIPPINES TO OBTAIN SUCH FOREIGN LOANS
to respond to the imperatives of the national interest AND CREDITS, OR TO INCUR SUCH FOREIGN
3
INDEBTEDNESS, AS MAY BE NECESSARY TO incurred, and the guarantees extended, as well as
FINANCE APPROVED ECONOMIC DEVELOPMENT such loans which may be reloaned to Filipino owned or
PURPOSES OR PROJECTS, AND TO GUARANTEE, controlled corporations and similar purposes.
IN BEHALF OF THE REPUBLIC OF THE Sec. 6. The Congress shall appropriate the necessary
PHILIPPINES, FOREIGN LOANS OBTAINED OR amount out of any funds in the National Treasury not
BONDS ISSUED BY CORPORATIONS OWNED OR otherwise appropriated, to cover the payment of the
CONTROLLED BY THE GOVERNMENT OF THE principal and interest on such loans, credits or
PHILIPPINES FOR ECONOMIC DEVELOPMENT indebtedness as and when they shall become due.
PURPOSES INCLUDING THOSE INCURRED FOR However, after the declaration of martial law, President
PURPOSES OF RELENDING TO THE PRIVATE Marcos issued PD 81 amending Section 6, thus:
SECTOR, APPROPRIATING THE NECESSARY Sec. 7. Section six of the same Act is hereby further
FUNDS THEREFOR, AND FOR OTHER PURPOSES, amended to read as follows:
provides: Sec. 6. Any provision of law to the contrary
Sec. 2. The total amount of loans, credits and notwithstanding, and in order to enable the Republic of
indebtedness, excluding interests, which the President the Philippines to pay the principal, interest, taxes and
of the Philippines is authorized to incur under this Act other normal banking charges on the loans, credits or
shall not exceed one billion United States dollars or its indebtedness, or on the bonds, debentures, securities
equivalent in other foreign currencies at the exchange or other evidences of indebtedness sold in
rate prevailing at the time the loans, credits and international markets incurred under the authority of
indebtedness are incurred: Provided, however, That this Act, the proceeds of which are deemed
the total loans, credits and indebtedness incurred appropriated for the projects, all the revenue realized
under this Act shall not exceed two hundred fifty million from the projects financed by such loans, credits or
in the fiscal year of the approval of this Act, and two indebtedness, or on the bonds, debentures, securities
hundred fifty million every fiscal year thereafter, all in or other evidences of indebtedness, shall be turned
United States dollars or its equivalent in other over in full, after deducting actual and necessary
currencies. expenses for the operation and maintenance of said
Sec. 5. It shall be the duty of the President, within thirty projects, to the National Treasury by the government
days after the opening of every regular session, to office, agency or instrumentality, or government-owned
report to the Congress the amount of loans, credits or controlled corporation concerned, which is hereby
and indebtedness contracted, as well as the appropriated for the purpose as and when they shall
guarantees extended, and the purposes and projects become due. In case the revenue realized is
for which the loans, credits and indebtedness were insufficient to cover the principal, interest and other
4
charges, such portion of the budgetary savings as may corporations and/or government financial institutions;
be necessary to cover the balance or deficiency shall b. government-owned or controlled corporations and/or
be set aside exclusively for the purpose by the government financial institutions the proceeds of which
government office, agency or instrumentality, or were relent to public or private institutions;
government-owned or controlled corporation c. government-owned or controlled corporations and/or
concerned: Provided, That, if there still remains a financial institutions and guaranteed by the Republic of
deficiency, such amount necessary to cover the the Philippines;
payment of the principal and interest on such loans, d. other public or private institutions and guaranteed by
credit or indebtedness as and when they shall become government-owned or controlled corporations and/or
due is hereby appropriated out of any funds in the government financial institutions.
national treasury not otherwise appropriated: . . . Sec. 2. All repayments made by borrower institutions
President Marcos also issued PD 1177, which on the loans for whose account advances were made
provides: by the National Treasury will revert to the General
Sec. 31. Automatic appropriations. All expenditures Fund.
for (a) personnel retirement premiums, government Sec. 3. In the event that any borrower institution is
service insurance, and other similar fixed expenditures, unable to settle the advances made out of the
(b) principal and interest on public debt, (c) national appropriation provided therein, the Treasurer of the
government guarantees of obligations which are drawn Philippines shall make the proper recommendation to
upon, are automatically appropriated; Provided, that no the Minister of Finance on whether such advances
obligations shall be incurred or payments made from shall be treated as equity or subsidy of the National
funds thus automatically appropriated except as issued Government to the institution concerned, which shall
in the form of regular budgetary allotments. be considered in the budgetary program of the
and PD 1967, which provides: Government.
Sec. 1. There is hereby appropriated, out of any funds In the "Budget of Expenditures and Sources of
in the National Treasury not otherwise appropriated, Financing Fiscal Year 1990," which accompanied her
such amounts as may be necessary to effect payments budget message to Congress, the President of the
on foreign or domestic loans, or foreign or domestic Philippines, Corazon C. Aquino, stated:
loans whereon creditors make a call on the direct and Sources Appropriation
indirect guarantee of the Republic of the Philippines, The P233.5 billion budget proposed for fiscal year
obtained by: 1990 will require P132.1 billion of new programmed
a. The Republic of the Philippines the proceeds of appropriations out of a total P155.3 billion in new
which were relent to government-owned or controlled legislative authorization from Congress. The rest of the
5
budget, totalling P101.4 billion, will be sourced from executive issuances not inconsistent with this
existing appropriations: P98.4 billion from Automatic Constitution shall remain operative until amended,
Appropriations and P3.0 billion from Continuing repealed, or revoked." (Emphasis supplied.)
Appropriations (Fig. 4). They then point out that since the said decrees are
And according to Figure 4, . . ., P86.8 billion out of the inconsistent with Section 24, Article VI of the
P98.4 Billion are programmed for debt service. In other Constitution, i.e.,
words, the President had, on her own, determined and Sec. 24. All appropriation, revenue or tariff bills, bills
set aside the said amount of P98.4 Billion with the rest authorizing increase of the public debt, bills of local
of the appropriations of P155.3 Billion to be determined application, and private bills shall originate exclusively
and fixed by Congress, which is now Rep. Act 6831.9 in the House of Representatives, but the Senate may
Petitioners argue that the said automatic propose or concur with amendments. (Emphasis
appropriations under the aforesaid decrees of then supplied.)
President Marcos became functus oficio when he was whereby bills have to be approved by the President,10
ousted in February, 1986; that upon the expiration of then a law must be passed by Congress to authorize
the one-man legislature in the person of President said automatic appropriation. Further, petitioners state
Marcos, the legislative power was restored to said decrees violate Section 29(l) of Article VI of the
Congress on February 2, 1987 when the Constitution Constitution which provides as follows
was ratified by the people; that there is a need for a Sec. 29(l). No money shall be paid out of the Treasury
new legislation by Congress providing for automatic except in pursuance of an appropriation made by law.
appropriation, but Congress, up to the present, has not They assert that there must be definiteness, certainty
approved any such law; and thus the said P86.8 Billion and exactness in an appropriation,11 otherwise it is an
automatic appropriation in the 1990 budget is an undue delegation of legislative power to the President
administrative act that rests on no law, and thus, it who determines in advance the amount appropriated
cannot be enforced. for the debt service.12
Moreover, petitioners contend that assuming arguendo The Court is not persuaded.
that P.D. No. 81, P.D. No. 1177 and P.D. No. 1967 did Section 3, Article XVIII of the Constitution recognizes
not expire with the ouster of President Marcos, after that "All existing laws, decrees, executive orders,
the adoption of the 1987 Constitution, the said decrees proclamations, letters of instructions and other
are inoperative under Section 3, Article XVIII which executive issuances not inconsistent with the
provides Constitution shall remain operative until amended,
Sec. 3. All existing laws, decrees, executive orders, repealed or revoked."
proclamations, letters of instructions, and other This transitory provision of the Constitution has
6
precisely been adopted by its framers to preserve the "basket" of foreign exchange and interest rate
social order so that legislation by the then President assumptions which may significantly differ from actual
Marcos may be recognized. Such laws are to remain in rates not even in proportion to changes on the basis of
force and effect unless they are inconsistent with the the assumptions. Absent an automatic appropriation
Constitution or, are otherwise amended, repealed or clause, the Philippine Government has to await and
revoked. depend upon Congressional action, which by the time
An examination of the aforecited presidential decrees this comes, may no longer be responsive to the
show the clear intent that the amounts needed to cover intended conditions which in the meantime may have
the payment of the principal and interest on all foreign already drastically changed. In the meantime, also,
loans, including those guaranteed by the national delayed payments and arrearages may have
government, should be made available when they shall supervened, only to worsen our debt service-to-total
become due precisely without the necessity of periodic expenditure ratio in the budget due to penalties and/or
enactments of separate laws appropriating funds demand for immediate payment even before due
therefor, since both the periods and necessities are dates.
incapable of determination in advance. Clearly, the claim that payment of the loans and
The automatic appropriation provides the flexibility for indebtedness is conditioned upon the continuance of
the effective execution of debt management policies. the person of President Marcos and his legislative
Its political wisdom has been convincingly discussed power goes against the intent and purpose of the law.
by the Solicitor General as he argues The purpose is foreseen to subsist with or without the
. . . First, for example, it enables the Government to person of Marcos.13
take advantage of a favorable turn of market conditions The argument of petitioners that the said presidential
by redeeming high-interest securities and borrowing at decrees did not meet the requirement and are
lower rates, or to shift from short-term to long-term therefore inconsistent with Sections 24 and 27 of
instruments, or to enter into arrangements that could Article VI of the Constitution which requires, among
lighten our outstanding debt burden debt-to-equity, others, that "all appropriations, . . . bills authorizing
debt to asset, debt-to-debt or other such schemes. increase of public debt" must be passed by Congress
Second, the automatic appropriation obviates the and approved by the President is untenable. Certainly,
serious difficulties in debt servicing arising from any the framers of the Constitution did not contemplate that
deviation from what has been previously programmed. existing laws in the statute books including existing
The annual debt service estimates, which are usually presidential decrees appropriating public money are
made one year in advance, are based on a reduced to mere "bills" that must again go through the
mathematical set or matrix or, in layman's parlance, legislative million The only reasonable interpretation of
7
said provisions of the Constitution which refer to "bills" In People vs. Vera,15 this Court said "the true distinction
is that they mean appropriation measures still to be is between the delegation of power to make the law,
passed by Congress. If the intention of the framers which necessarily involves discretion as to what the law
thereof were otherwise they should have expressed shall be, and conferring authority or discretion as to its
their decision in a more direct or express manner. execution, to be exercised under and in pursuance of
Well-known is the rule that repeal or amendment by the law. The first cannot be done; to the latter no valid
implication is frowned upon. Equally fundamental is the objection can be made."
principle that construction of the Constitution and law is Ideally, the law must be complete in all its essential
generally applied prospectively and not retrospectively terms and conditions when it leaves the legislature so
unless it is so clearly stated. that there will be nothing left for the delegate to do when
On the third issue that there is undue delegation of it reaches him except enforce it. If there are gaps in the
legislative power, in Edu vs. Ericta,14 this Court had this law that will prevent its enforcement unless they are first
to say filled, the delegate will then have been given the
What cannot be delegated is the authority under the opportunity to step in the shoes of the legislature and
Constitution to make laws and to alter and repeal them; exercise a discretion essentially legislative in order to
the test is the completeness of the statute in all its terms repair the omissions. This is invalid delegation.16
and provisions when it leaves the hands of the The Court finds that in this case the questioned laws are
legislature. To determine whether or not there is an complete in all their essential terms and conditions and
undue delegation of legislative power, the inequity must sufficient standards are indicated therein.
be directed to the scope and definiteness of the The legislative intention in R.A. No. 4860, as amended,
measure enacted. The legislature does not abdicate its Section 31 of P.D. No. 1177 and P.D. No. 1967 is that
function when it describes what job must be done, who the amount needed should be automatically set aside in
is to do it, and what is the scope of his authority. For a order to enable the Republic of the Philippines to pay
complex economy, that may indeed be the only way in the principal, interest, taxes and other normal banking
which legislative process can go forward . . . charges on the loans, credits or indebtedness incurred
To avoid the taint of unlawful delegation there must be as guaranteed by it when they shall become due without
a standard, which implies at the very least that the the need to enact a separate law appropriating funds
legislature itself determines matters of principle and lays therefor as the need arises. The purpose of these laws
down fundamental policy . . . is to enable the government to make prompt payment
The standard may be either express or implied . . . from and/or advances for all loans to protect and maintain the
the policy and purpose of the act considered as whole . credit standing of the country.
.. Although the subject presidential decrees do not state
8
specific amounts to be paid, necessitated by the very With regard to debt servicing, the DBCC staff, based on
nature of the problem being addressed, the amounts the macro-economic projections of interest rates (e.g.
nevertheless are made certain by the legislative LIBOR rate) and estimated sources of domestic and
parameters provided in the decrees. The Executive is foreign financing, estimates debt service levels. Upon
not of unlimited discretion as to the amounts to be issuance of budget call, the Bureau of Treasury
disbursed for debt servicing. The mandate is to pay only computes for the interest and principal payments for the
the principal, interest, taxes and other normal banking year for all direct national government borrowings and
charges on the loans, credits or indebtedness, or on the other liabilities assumed by the same.
bonds, debentures or security or other evidences of 2. Legislative authorization. At this stage, Congress
indebtedness sold in international markets incurred by enters the picture and deliberates or acts on the budget
virtue of the law, as and when they shall become due. proposals of the President, and Congress in the
No uncertainty arises in executive implementation as exercise of its own judgment and wisdom formulates an
the limit will be the exact amounts as shown by the appropriation act precisely following the process
books of the Treasury. established by the Constitution, which specifies that no
The Government budgetary process has been money may be paid from the Treasury except in
graphically described to consist of four major phases as accordance with an appropriation made by law.
aptly discussed by the Solicitor General: Debt service is not included in the General
The Government budgeting process consists of four Appropriation Act, since authorization therefor already
major phases: exists under RA No. 4860 and 245, as amended and PD
1. Budget preparation. The first step is essentially 1967. Precisely in the fight of this subsisting
tasked upon the Executive Branch and covers the authorization as embodied in said Republic Acts and PD
estimation of government revenues, the determination for debt service, Congress does not concern itself with
of budgetary priorities and activities within the details for implementation by the Executive, but largely
constraints imposed by available revenues and by with annual levels and approval thereof upon due
borrowing limits, and the translation of desired priorities deliberations as part of the whole obligation program for
and activities into expenditure levels. the year. Upon such approval, Congress has spoken
Budget preparation starts with the budget call issued by and cannot be said to have delegated its wisdom to the
the Department of Budget and Management. Each Executive, on whose part lies the implementation or
agency is required to submit agency budget estimates execution of the legislative wisdom.
in line with the requirements consistent with the general 3. Budget Execution. Tasked on the Executive, the third
ceilings set by the Development Budget Coordinating phase of the budget process covers the various
Council (DBCC). operational aspects of budgeting. The establishment of
9
obligation authority ceilings, the evaluation of work and omits any of these words and simply states:
financial plans for individual activities, the continuing Section 29(l). No money shall be paid out of the treasury
review of government fiscal position, the regulation of except in pursuance of an appropriation made by law.
funds releases, the implementation of cash payment More significantly, there is no provision in our
schedules, and other related activities comprise this Constitution that provides or prescribes any particular
phase of the budget cycle. form of words or religious recitals in which an
Release from the debt service fired is triggered by a authorization or appropriation by Congress shall be
request of the Bureau of the Treasury for allotments made, except that it be "made by law," such as precisely
from the Department of Budget and Management, one the authorization or appropriation under the questioned
quarter in advance of payment schedule, to ensure presidential decrees. In other words, in terms of time
prompt payments. The Bureau of Treasury, upon horizons, an appropriation may be made impliedly (as
receiving official billings from the creditors, remits by past but subsisting legislations) as well as expressly
payments to creditors through the Central Bank or to the for the current fiscal year (as by enactment of laws by
Sinking Fund established for government security the present Congress), just as said appropriation may
issues (Annex F). be made in general as well as in specific terms. The
4. Budget accountability. The fourth phase refers to the Congressional authorization may be embodied in
evaluation of actual performance and initially approved annual laws, such as a general appropriations act or in
work targets, obligations incurred, personnel hired and special provisions of laws of general or special
work accomplished are compared with the targets set at application which appropriate public funds for specific
the time the agency budgets were approved. public purposes, such as the questioned decrees. An
There being no undue delegation of legislative power as appropriation measure is sufficient if the legislative
clearly above shown, petitioners insist nevertheless that intention clearly and certainly appears from the
subject presidential decrees constitute undue language employed (In re Continuing Appropriations, 32
delegation of legislative power to the executive on the P. 272), whether in the past or in the present.17
alleged ground that the appropriations therein are not Thus, in accordance with Section 22, Article VII of the
exact, certain or definite, invoking in support therefor the 1987 Constitution, President Corazon C. Aquino
Constitution of Nebraska, the constitution under which submitted to Congress the Budget of Expenditures and
the case of State v. Moore, 69 NW 974, cited by Sources of Financing for the Fiscal Year 1990. The
petitioners, was decided. Unlike the Constitution of proposed 1990 expenditure program covering the
Nebraska, however, our Constitution does not require a estimated obligation that will be incurred by the national
definite, certain, exact or "specific appropriation made government during the fiscal year amounts to P233.5
by law." Section 29, Article VI of our 1987 Constitution Billion. Of the proposed budget, P86.8 is set aside for
10
debt servicing as follows:
1w phi1
be the ultimate objective of the petition, is not an issue
National Government that is presented or proposed to be addressed by the
Debt Court. Indeed, it is more of a political decision for
Service Expenditures, Congress and the Executive to determine in the
1990 exercise of their wisdom and sound discretion.
(in million pesos) WHEREFORE, the petition is DISMISSED, without
Domestic pronouncement
Foreign as to costs. Total
RA 245, as SORA ORDERED.
4860
amended Fernan, C.J., Narvasa, Melencio-Herrera, Feliciano,
as amended,
Bidin,
PDGrio-Aquino,
1967 Medialdea, Regalado and Davide,
Interest Jr., JJ., concur.
Payments P36,861 P18,570 P55,431
Principal Separate Opinions
Amortization 16,310 PARAS, J., dissenting:31,387
15,077
I dissent. Any law that undermines our economy and
Total P53,171 therefore our security is
P33,647 per se unconstitutional. 18
P86,818
======== ======== ========
as authorized under P.D. 1967 and R.A. 4860 and 245, CRUZ, J., dissenting:
as amended. I regret I must dissent.
The Court, therefor, finds that R.A. No. 4860, as One of the essential requirements of a valid
amended by P.D. No. 81, Section 31 of P.D. 1177 and appropriation is that the amount appropriated must be
P.D. No. 1967 constitute lawful authorizations or certain, which means that the sum authorized to be
appropriations, unless they are repealed or otherwise released should either be determinate or at least
amended by Congress. The Executive was thus determinable. As has been uniformly held:
merely complying with the duty to implement the same. It is essential to the validity of an appropriation law that
There can be no question as to the patriotism and it should state the exact amount appropriated or the
good motive of petitioners in filing this petition. maximum sum from which the authorized expenses
Unfortunately, the petition must fail on the shall be paid, otherwise it would be void for
constitutional and legal issues raised. As to whether or uncertainty, since the legislative power over
not the country should honor its international debt, appropriation in effect could have been delegated in
more especially the enormous amount that had been such case to the recipient of the funds appropriated or
incurred by the past administration, which appears to to the official authorized to spend them. (State v.
11
Eggers, 16 L.R.A., N.S. 630; State v. La Grave, 41 amount appropriated fixed, either by an exact figure or
Pac. 1075). by an indication at least of its maximum.
Thus, a law which provided that there should be paid The ponencia says that "the amounts are made certain
out of the State Treasury to any person, firm or by the legislative parameters provided in the degree." I
corporation engaged in the manufacture of sugar in am afraid I do not see those parameters. I see only the
that State the sum of five-eights of one per cent per appropriation of "all the revenue derived from the
pound upon each pound manufactured under the projects financed by such loans" and "such amounts as
conditions and restrictions of the Act was held as may be necessary to effect payment on foreign or
invalid appropriation for lack of certainty in the amount domestic loans" or "the principal and interest on public
to be paid out of the Treasury, the legislature having debt, as and when they shall become due." All these
failed to fix the amount to be appropriated. (State of are uncertain.
Nebraska v. Moore, 50 Neb. 88, cited in Gonzales, Even President Marcos as a legislator, did not know
Phil. Political Law, p. 213). how much he was appropriating.
The presidential decrees on which the respondents The ponencia assures us that "no uncertainty arises in
rely do not satisfy this requirement.
1vvphi 1 executive implementation as the limit will be the exact
Section 7 of P.D. 81 provides that "all the revenue amounts as shown by the books of the Treasury." That
realized from the projects financed by such loans," is cold comfort, indeed, if we consider that it is the
after deducting the actual and necessary operating and Treasury itself that is sought to be limited by the
maintenance expenses, is appropriated for servicing requirement for certainty. The intention precisely is to
the foreign debts. prevent the disbursement of public funds by the
The same sections says that in case of deficiency, Treasury itself from "running riot."
"such amount necessary to cover the payment of the We surely cannot defend an appropriation, say, of
principal and interest on such loans, credit or "such amounts as may be necessary for the
indebteedness as and when they shall become due is construction of a bridge across the Pasig River" even if
hereby appropriated." the exact cost may be shown later by the books of the
Section 31 of P.D. 1717 provides that "all expenditures Treasury. This would be no different from the uncertain
for the payment of the principal and interest on public appropriations the Court is here sustaining.
debt" are automatically appropriated. I think it is a mistake for this government to justify its
Section 1 of P.D. 1967 appropriates "such amounts as acts on the basis of the decrees of President Marcos.
may be necessary to effect payments on foreign or These are on the whole tainted with authoritarianism
domestic loans." and enfeebled by lack of proper study and
It is easy to see that in none of these decrees is the draftmanship, let alone suspect motives. I suggest that
12
these decrees must be reviewed carefully and relative to debt service were tailored for the periods
whenever proper, set aright by necessary modification covered by said decrees. Today it is Congress that
or outright revocation. Instead, the respondents are should determine and approve the proper
invoking them blindly. appropriations for debt servicing, as this is a matter of
Sarmiento, J., concurs. policy that, in my opinion, pertains to the legislative
department, as the policy determining body of the
PADILLA, J., dissenting Government.
I join Mr. Justice Cruz in his dissent. I only wish to add
the following: Footnotes
Section 29(l), Article VI of the 1987 Constitution 1 Annexes A and B to Petition consisting of excerpts

provides: from the "Budget Expenditure and Services of

Sec. 29(l). No money shall be paid out of the Treasury Financing Fiscal Year 1990" attached to the budget
except in pursuance of an appropriation made by law. message of the President to Congress.
It is quite obvious from this provision that there must 2 Annex C to Petition.

first be a law enacted by Congress (and approved by 3 Gonzales vs. Macaraig, Jr., G.R. No. 87656,

the President) appropriating a particular sum or sums November 19, 1990.

before payment thereof from the Treasury can be 4 Municipality of Malabang vs. Benito, 27 SCRA 533

made. (1969) and Philippine Constitution Association, Inc. vs.

If the above constitutional provision is to be meaningful Mathay, 18 SCRA 300 (1966).
and effective at all, I believe that the law appropriating 5 Supra.

a particular sum or sums for debt service, whether 6 Page 5, Rollo.

involving domestic or foreign loans of the Government, 7 Pages 6 to 7, Rollo.

should be enacted by the Congress, composed of the 8 Annex G to Petition.

most recently elected representatives of the people. To 9 Pages 7 to 11, Rollo; Emphasis supplied.

construe the term "lay" in the above provision to mean 10 Section 27, Article VI, Constitution.

the decrees issued by then President Marcos would, in 11

Citing State vs. Eggers, 16 L.R.A. N.S. 630; State vs.
effect, be supporting a continuing governance of a La Grave, 41 Pac. 1075; 1 Taada and Carreon,
large segment of the Philippine economy by a past Political Law, 1961 ed., p. 253; State vs. Moore, 69
regime which, as every one knows, centralized for a N.W. 3735, pages 15 to 20, Rollo.
good number of years legislative and executive powers 12 Citing People vs. Vera, 65 Phil. 56 (1937) and

in only one person. Araneta vs. Dinglasan, 84 Phil. 368 (1949), 1 Taada
Besides, these decrees issued by President Marcos and Carreon, supra, pages 421 to 422; Sinco,
13
Philippine Political Law, 10th ed., page 220.
13 Pages 66 to 67, Rollo.

14 1435 SCRA 481 (1970).

15 Supra.

16 Isagani Cruz, Philippine Political Law, pages 97 to

99, 1987 Edition.

17 Pages 73 to 78, Rollo.

18 Annex B to Petition.

14