A newly signed law strengthens the judiciary’s constitutional fiscal autonomy, giving courts greater control over their budget and ensuring stable funding.

President Ferdinand R. Marcos Jr. on August 14 signed Republic Act No. 12233, or the Judiciary Fiscal Autonomy Act, which allows the judiciary to submit its original budget proposal directly to Congress as part of the National Expenditure Program (NEP) and mandates the automatic monthly release of its funds. 

Under the law, it mandates that one-twelfth of the judiciary’s annual allocation be released each month by the Department of Budget and Management without need for further clearances.

The law strengthens Article VIII, Section 3 of the 1987 Constitution, which provides that the judiciary shall enjoy fiscal autonomy, addressing budget constraints that have hindered court operations and modernization.

“Kapag may sapat na pondo at malinaw na patakaran sa paggamit nito, magagawa ng Hudikatura nang mas mabuti ang kanilang sinumpaang tungkulin,” Marcos said, stressing that adequate resources would allow courts to decide cases “without fear or hesitation.”

(With sufficient funding and clear rules on its use, the Judiciary will be able to perform its sworn duty more effectively)

Supreme Court (SC) Chief Justice Alexander G. Gesmundo welcomed the enactment, noting that it “significantly supports the Supreme Court’s ongoing modernization efforts under the Strategic Plan for Judicial Innovations 2022–2027.”

Among its provisions, the law authorizes the SC to augment budget items and reallocate funds by resolution to address pressing needs such as hiring personnel, repairing facilities, or upgrading court systems. 

Moreover, a Judiciary Trust Fund will also be established to manage revenues and expenditures, subject to post-audit by the Commission on Audit.

To strengthen personnel capacity, the Department of Budget and Management must act within 120 days on the Court’s staffing requests through the issuance of a Notice of Organization, Staffing, and Compensation Action. 

The law also facilitates the transfer of ownership of properties acquired for the judiciary to the SC for better control and asset management.

Furthermore, transparency safeguards remain in place, with the judiciary required to submit quarterly reports to the President and Congress on the use of its funds.

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