n T H  CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Ralph G. Recto 
EXPLANATORY 
NOTE 
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The Judiciajy Development Fund (JDF) was created by Presidential Decree 
No. 1949 in recognition of the meager budgetary allocations provided by Congress to 
the Judiciary. Thk JDF which is derived from the increase in legal fees since 1984, 
and from other sources such as: 1) bar examination fees, 2) interest on deposits of its 
income, 3) confiscated bail bonds, 4) income from publications of the Supreme Court 
Printing Press, 5) rentals of facilities in Halls of Justice, is intended to augment the 
Judiciary’s budget to maintain apd preserve its independence. 
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The Judiciary, the third and co-equal branch of government, is consistently 
given less than 1% of the national budget. For 2000 and 2001, no cash allocation was 
released by the Department of Budget and Management for capital outlay. The Court 
had to rely on the JDF for equipment and facilities. 
To “ensure the uplift” of the members and personnel of the Judiciary, Section 
1 of PD 1949 provides that “the Fund shall be used to augment the allowances of 
members and personnel of the Judiciary and to finance the acquisition, maintenance, 
and repair of office equipment and facilities.” 
Clearly, the law provides that the proper source of the increase of salaries for 
the justices and judges and their court personnel should be the Judiciary 
Development Fund (JDF). Yet there have been allegations that this has been isolated 
by the Chief Justice and used like a discretionary fund, which have become the basis 
for Congressional investigations and the filing of an impeachment case against the 
Chief Justice in the previous Congress. 
This measure seeks to streamline the purpose of the fund by creating a Local 
Government Judicial Development Fund to be administered by the Executive Judge 
of the appropriate judicial region or district; widen the coverage in the grant of 
bigger allowances to the members and personnel of the Judiciary; and transfer the 
authority in the administration and allocation of the JDF. 
In view of the foregoing, passag 
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CONGRESS OF THE 
1 
REPUBLIC 
OF THE PHILIPPINES 
1 
Fivst Regular Session 
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Intvoduced bu Senator Ralah G. Recto 
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AN ACT 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 1949 
"ESTABLISHING 
A 
JUDICIARY DEVELOPMENT FUND AND FOR OTHER PURPOSES" 
Be it enacted by thk Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION 1. Section 1 of Presidential decree No. 1949 is hereby amended to read as 
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follows: 
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"SECTION 1. 
There is hereby established a Judiciary development 
Fund, hereinafter referred to as the Fund, for the benefit of the members and 
personnel of, the Judiciary to help ensure and guarantee the independence of 
the Judiciary; as mandated by the Constitution and public policy and required 
by the impartial administration of justice. The Fund shall be derived from, 
among others, the increase in the legal fees prescribed in the amendments to 
Rule 141 of h e  Rules of Court to be promulgated by the Supreme Court of the 
Philippines. 
The Fund shall be used to augment the allowances of the 
members add personnel of the Judiciary and to finance the acquisition, 
maintenance: and repair of office equipment and FOR MAINTENANCE 
AND OTHER OPERATING EXPENSES (MOOE) [facilities]: Provided, 
That at least; eighty percent (80%) of the Fund shall be used for cost of living 
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allowances, and not more than twenty percent (20%) of the said Fund shall be 
used for office equipment and facilities of the Courts located where the legal 
fees are collkcted: Provided, further, That said allowances of the members and 
personnel of the Judiciary shall be distributed in proportion of their basic 
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salaries: and Provided, jnally, That bigger allowances may be granted to those 
receiving a basic salary of less than P10,000.00 
[P1,000.00] 
a month." 
SEC. 2. 
Section 4 of the same Presidential Decree is hereby amended to read as 
follows: 
"SEC.: 4. Nothing herein shall be construed to affect or diminish the 
duty of local government units to provide office spaces, equipment, and 
facilities to the courts within their respective territorial jurisdiction as required 
under existing laws. FOR THIS PURPOSE, A LOCAL GOVERNMENT 
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JUDICIAL DEVELOPMENT FUND IS HEREBY CREATED TO BE 
APPROPRILTE JUDICIAL REGION OR DISTRICT: PROVIDED, 
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ADMINISTERED 
BY 
THE 
EXECUTIVE 
JUDGE 
OF 
THE 
AS DETEWINED BY THE SUPREME COURT. 
INTERMEDIATE 
APPELLATE 
JUSTICES, 
REGIONAL 
TRIAL 
JUDGES, 
METROPOLITAL TRIAL JUDGES, MUNICIPAL. TRIAL JUDGES, 
AND MUNICIPAL CIRCUIT TRIAL JUDGES, AS THE CASE MAY BE 
AND THEIR COURT PERSONNEL ARE EXPRESSLY PROHIBITED 
FROM RECEIVING COMPENSATION AND ALLOWANCES FROM 
LOCAL GOVERNMENT UNITS. [Moreover, there shall be no reduction of 
the compensation, allowances, benefits and privileges enjoyed by the members 
and personnel of the Judiciary on the date of the effectivity of this Decree.]" 
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SEC. 3. Separability Cluuse. - If any provision of this Act or the application thereof 
is held invalid or unconstitutional, all the other provisions not affected thereby shall remain 
valid. 
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SEC. 4. 
Repealing Clause. - All laws, decrees, or rs, proclamations, rules and 
regulations or parts thereof which are inconsistent with any of the provisions of this Act are 
hereby repealed, modified or amended accordingly. 
SEC. 5. Transitovy Provision. - For a period of three (3) years from the effectivity of 
this Act, the present allowances received by judges from local governments shall be paid out 
of the judicial development fund. 
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SEC. 6. 
Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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