Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __ 
_ 
Introduced by Representative GLORIA MACAPAGAL-ARROYO 
AN ACT 
DEFINING THE SCOPE AND EXTENT OF THE FISCAL AUTONOMY OF THE 
JUDICIAL BRANCH OF GOVERNMENT AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The Judiciary, a separate and co-equal branch of government, has the 
Constitutional duty "to settle actual controversies involving rights which are 
legally demandable and enforceable, and to determine whether or not there has 
been a grave abuse of discretion amounting to lack or excess of jurisdiction on 
the part of any branch or instrumentality of the Government". It is headed by 
the Supreme Court and composed of all lower courts, the Presidential Electoral 
Tribunal, Sandiganbayan, Court of Appeals, and Court of Tax Appeals. 
To enable the Judiciary to fulfill its mandate and as enshrined in Art. 
Vlll, Sec. 3 of the 1987 Constitution, "the Judiciary shall enjoy fiscal autonomy. 
Appropriations for the judiciary may not be reduced by the legislature below the 
amount appropriated for the previous year and, after approval, shall be 
automatically and regularly released". 
However, despite this very clear 
provision of the Constitution on fiscal autonomy, the Judiciary's operation has 
been hampered by the practice and requirements of various oversight agencies, 
particularly of the Department of Budget and Management. These bureaucratic 
system does not help in addressing backlog of cases in courts and the numerous 
vacancies in the judicial posts all over the country. 
July 28, 2022
12:58 am
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In pursuit of swift administration of justice and to enhance the capability 
of the judiciary to fulfill its mandate under the constitution, there is a need to 
legislate a measure in order to define and elaborate the extent, scope and 
limitations of fiscal autonomy in the judiciary, and the appurtenant rights and 
obligations of the courts, and also of the other oversight agencies of government. 
In view of the objectives contained herein, the passage of this bill is most 
urgently sought. 
2 
GLORIA ~GAL ARROYO 
2nd District, Pampanga 


/ 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __ 
_ 
Introduced by Representative GLORIA MACAPAGAL-ARROYO 
AN ACT 
DEFINING THE SCOPE AND EXTENT OF THE FISCAL AUTONOMY OF THE 
JUDICIAL BRANCH OF GOVERNMENT AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the 
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Philippines, in Congress assembled: 
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SECTION 1. Shon Title. - This Act shall be known as the "'The Fiscal 
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Autonomy Act of the Judicial Branch of Government". 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
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to affrrm and strengthen the constitutional mandate and powers of the Judiciary 
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as a co-equal branch of government. To this end, and with the goal of ensuring 
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the Judiciary's continuing independence, the Judiciary's fiscal autonomy 
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mandated under Sec. 3, Art. 8, Constitution, shall be guaranteed, as such: 
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a) in accordance with Sec. 3, Art. 8, Constitution, appropriations for the 
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Judiciary may not be reduced below the amount appropriated for the 
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previous year. After approval by Congress, the appropriations for the 
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Judiciary shall be automatically and regularly released. The releases 
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shall not be conditioned on the submission of any work and financial 
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plans nor any financial report whatsoever. 
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b) As provided under Sec. 16, Art. 8 , Constitution, the Supreme Court 
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shall be required to submit its annual report to the President and 
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Congress within thirty days from the opening of each regular section of 
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Congress. 
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SEC. 3. Submission of Annual Budget Proposal. -The Supreme Court shall 
submit a budget of expenditures and sources of financing, reflecting total 
revenues and expenditures for the budget year, to Congress for approval with 
copy furnished to the Department of Budget and Management (DBM). 
SEC. 4. Proposed Revisions of the DBM. - The budget proposal prepared 
by the Supreme Court shall be incorporated in the draft national budget without 
any revisions. The DBM, however, may propose revisions thereon as it may deem 
appropriate; Provided, that it clearly indicates that the revisions are of its own 
and not of the Court's; Provided, further, that the DBM shall consult in writing 
the Supreme Court or the Chief Justice concerning its comments on, and 
suggested revisions to, the proposed budget for the Judiciary. 
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Upon written request of the DBM, the Supreme Court or the Chief Justice 
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may, in their discretion, submit reports of operation and income, current 
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personnel, work and financial plans and similar reports to the DBM only for 
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recording purposes. The submission thereof concerning funds previously 
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released shall not be a condition precedent for subsequent fund releases. 
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SEC. 5. Power to Realign the Budget Appropriated for the Judiciary. Upon 
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the approval of the total budget for the Judiciary: 
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a) The Supreme Court or the Chief Justice shall have the power and 
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authority to realign the budget from one expense account to another, 
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or from one functional unit or category to another, without approval of 
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the DBM. The Supreme Court or the Chief Justice may also utilize any 
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savings from the budget for whatever expense, as the Court or Chief 
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Justice may deem necessary and reasonable for the fulfillment of the 
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Judicia:ry's mandate. 
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b) The DBM shall automatically release to the Supreme Court, without 
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need for any request, the monthly cash requirements of the Judiciary 
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or one-twelfths (1/12) of the total National Government support. The 
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releases shall not be conditioned on approved work and financial 
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plans, nor any financial report whatsoever. The Supreme Court shall 
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only submit accomplishment and financial reports, within thirty days 
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from the opening of each regular session of Congress, to the President 
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and to Congress. 
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c) All expenditures and revenues of the Judiciary shall be subject to post-
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audit by the Commission on Audit, under pertinent laws, rules and 
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regulations. 
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SEC. 6. Judiciary Trust Fund. - There is hereby created a trust fund, to be 
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known as the Judiciary Trust Fund, which shall be dedicated for the use of the 
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judiciary. All the funds collected for, or accruing to the Judiciary may be 
deposited and kept in the said trust fund, and from which funds needed for its 
operation shall be drawn. The Judiciary Trust Fund shall include, but not be 
limited to the following: 
(a) Such funds that may be appropriated by Congress for the Judiciary; 
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(b) Increases in legal fees that are collected by the Judiciary pursuant to 
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PD 1949; 
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(c) Contributions of the local government units, under Sec. 3.c. of this Act: 
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and 
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(d) All interest income and trust fund. 
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SEC. 7. Power to Collect Fees and Raise Revenues - The Judiciary shall 
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continue to enjoy its authority under PD 1949 to collect legal fees, pursuant to 
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the pertinent provisions of the Rules of Court. 
However, the fund utilization 
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ratio of Eighty Percent (80%) for cost of living allowances, and Twenty Percent 
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(20%) for office equipment and facilities shall no longer apply, considering that 
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all legal fees prescribed in Rule 141 of the Rules of Court, as amended, shall now 
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constitute a part of the Judicial Trust Fund, pursuant to Sec. 6 of this Act. 
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(a) The Supreme Court shall determine the appropriate level of fees and 
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charges pursuant to Sec. 3 of Rule 141 of the Rules of Court, m 
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accordance with the following policy objectives: 
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( 1) Access to justice specially the disadvantaged and poor sectors of 
society; 
(2) Internal revenue generation for the judiciary, to support its 
operations; and 
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(3) Charging the users of the judicial system in accord with their ability 
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to pay. 
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(b) Local Government Units are strictly prohibited from providing 
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allowances, supplies, materials, vehicles and other resources for the 
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use of judges within their respective areas of jurisdiction, except for 
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the use of the courtroom located within the municipal or city hall, or 
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other buildings or facilities owned or leased by the local government 
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unit, and the maintenance thereof. 
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SEC. 8. Power to Create Offices and Reorganize the Administrative 
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Structure. - The Supreme Court shall have the authority to create such offices 
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and to reorganize its administrative structure, both at the national and regional 
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levels, for purposes of oversight or operations, in order to carry out the purposes 
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of this Act, and to enable it to take on the additional functions and 
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responsibilities stated in this Act, within the limit of its available resources. 
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The Supreme Court shall likewise have the authority to create such 
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positions, and allocate the necessary budgetruy support for the smooth 
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operations of such offices. The creation of offices at the regional level shall be 
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guided by the principle of decentralization of administrative, financial, and 
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personnel matters, and bringing court management closer to the litigants, and 
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other users of the judicial system. 
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SEC. 9. Salary and Personnel Administration. - The Supreme Court shall 
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have the authority to determine the number and positions of court personnel 
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necessary for the smooth functioning of the judiciary, within the limits of the 
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approved appropriation guided by constitutional and legislative policies on 
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hiring and compensation. A copy of the annual approved staffing pattern of 
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personnel shall be furnished the COA and the DBM. 
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The Supreme Court shall institute measures to provide sufficient, 
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attractive and competitive compensation for judicial and non-judicial personnel 
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that will ensure continuity of service and sustainability, and in support of a 
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career development program. Such measures may include but not be limited to 
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the broadbanding of salaries, and the provision of total cash compensation 
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packages. 
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SEC. 10. Transfer of Physical Assets. - All real and personal properties 
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not presently titled to the Supreme Court, which have been acquired for the 
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judiciary shall, as far as practicable, be transferred to the Supreme Court, by 
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other national or local government units, or government owned or controlled 
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corporations, through an appropriate instrument, within six months from the 
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effectivity of this Act. Thereafter, the Supreme Court shall exercise the fiduciary 
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ownership, management, control, as well as the security, maintenance and 
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disposition, of such properties. 
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SEC. 11. Delegation of Autlwrity. - The Supreme Court en bane, through 
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an appropriate instrument] may also delegate to the Chief Justice, the Court 
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Administrator, or other offices or heads of offices, which currently exist or may 
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be created in the future, any and all powers, functions and responsibilities 
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which are granted under this Act, under such conditions and under such 
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periods as the Supreme Court en bane may allow. 
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SEC. 12 Implementing Rules and Regulations. -- The Supreme Court, in 
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consultation with the DBM and the COA, shall promulgate the rules and 
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regulations necessary to carry out the intent of this Act, save for those provisions 
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where particular agencies of government are mandated to promulgate the 
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implementing rules. The necessary rules and regulations shall be promulgated 
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within six (6) months from the effectivity of this Act. 
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SEC. 13. Separability Clause - If any provision of this Act shall be held 
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unconstitutional or invalid, the other provisions not otherwise affected shall 
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remain in full force and effect. 
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SEC. 14. Repealing Clause -
All laws, executive orders, rules, and 
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regulations inconsistent with or contrary to this Act, are hereby deemed 
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accordingly repealed or modified. 
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SEC. 15. Effectiuity Clause. - This Act shall take effect after fifteen (15) 
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days following its publication in the Official Gazette or in at least two (2) 
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newspapers of national circulation. 
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Approved, 
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