FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
Senate Bill No. 
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Introduced by Senator FRANCIS N. PANGlLlNAN 
EXPLANATORY NOTE 
Art. VIII, Sec. 3 of the 1987 Constitution states that "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 the provision of the Constitution on fiscal autonomy, the 
Judiciary, as a co-equal and separate branch of government, has been 
hampered in its operations by the requirements of various oversight agencies, 
most specially the Department of Budget and Management. 
The Judiciary needs to be accorded its independence to fulfill its mandate 
of settling actual controversies and reviewing whether the acts of government are 
in excess of their jurisdiction. 
Judicial Independence should also be accompanied by full accountability, 
in terms of the full disclosure of its various incomes and expenditures, audit of 
the expenditures of the judiciary and reporting to the President and Congress of 
the annual report of the operations and activities of the courts within one month 
from the opening of each regular session of Congress, pursuant to Sec. 16, Art. 
Vlll of the Constitution. 
Legislation is required in order to elaborate the extent, scope and 
limitations of fiscal autonomy in the judiciary, and the appurtenant rights and 
obligations of the courts, and also the oversight agencies of government. 
Considering the backlog of cases, and the numerous vacancies in the 
judicial posts all over the country, we believe that the passage of this law will 
greatly enhance the capability of the judiciary to fulfill its mandate under the 
constitution. 
In view of the objectives contained herein, the passage of this bill is most 
respectfully urged. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
SENATE 
SENATE BILL No.- 134 
Introduced by SENATOR FRANCIS N. PANOILINAN 
AN ACT 
DEFINING THE SCOPE AND EXTENT OF THE FISCAL AUTONOMY OF 
THE JUDICIAL BRANCH OF GOVERNMENT AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
SECTION I .  Shod 77f/e of fhe Act. - This Act shall be otherwise known as the 
“The Fiscal Autonomy Act of the Judicial Branch of Governmenf. 
SEC. 2. Declaration of Sfafe Policy. - 
a. 
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 automatically and regularly released. 
b. 
The Judiciary shall have the autonomy to collect fees and other charges, 
to raise its revenues, to prepare and consolidate its own budget, including the budgets 
of various offices and units under its supervision and control, to allocate and prioritize 
the appropriated budgets, fees, charges, income and other sources of funds, to transfer 
funds from one expenses account to another, to utilize such funds, and to report and 
account for its activities, operations and expenditures, in the manner it deems fit and 
appropriate, and consistent with the provisions of this Act. 
c. 
The Judiciary shall enjoy autonomy to create various offices and to 
reorganize its administrative structure, both at the central and the regional levels, eight 
for oversight or operations purposes, to provide for the necessary personnel 
complement, and provide for adequate salaries, human resource development 
programs and other incentives that will motivate judicial and non-judicial personnel to 
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promote the administration of justice and meet the expectations of the public in general. 


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SEC. 3. Power to Collect Fees and Raise Revenues. - 
a. 
The Judiciary shall continue to enjoy its authority under PD 1949 to collect 
legal fees, pursuant to the pertinent provisions of the Rules of Court. However, the fund 
utilization ratio of eighty percent (80%) for cost of living allowances, and twenty percent 
(20%) for office equipment and facilities shall no longer apply, considering that all legal 
fees prescribed in Rule 141 of the Rules of Court, as amended, shall now constitute a 
part of the Judicial Trust Fund, pursuant to Sec. 8 of this Act. 
b. 
The Supreme Court shall determine the appropriate level of fees and 
charges pursuant to Sec. 3 of Rule 141 of the Rules of Court, in accordance with the 
following policy objectives: 
( 7 )  
Access to justice specially the disadvantaged and poor sectors 
of society; 
Internal revenue generation for the judiciary, to support its 
Operations; and 
Charging the users of the judicial system in accord with their 
ability to pay. 
(2) 
(3) 
c. 
Local Government Units are strictly prohibited from providing allowances, 
supplies, materials, vehicles and other resources for the use of judges within their 
respective areas of jurisdiction, except for the use of the courtroom located within the 
municipal or city hall, or other buildings or facilities owned or leased by the local 
government unit, and the maintenance thereof. 
SEC. 4. Power to Prepare and Submit the Annual Budget. - The Judiciary shall 
submit to Congress, with copy furnished to DBM, a budget of expenditures and souces 
of financing which will reflect total revenues and expenditures for the budget year. 
SEC. 5. Power to Reallocate the Approved National Budget. - 
(a) 
Upon the approval of the total budget for the Judiciary, the Supreme Court 
shall be fully empowered to recast the approved budget into an operating budget for the 
various units under the general supervision of the Supreme Court. The Supreme Court 
shall have the authority to realign the budget from one expenses account to another, 
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and from one functional unit or category to another, without necessity of approval from 
the DBM. The Supreme Court may also utilize any savings from the budget for 
whatever expense, which the Court may deem necessary and reasonable for the 
fulfillment of the Judiciary’s mandate. 
(b) 
The DBM shall automatically release to the Supreme Court, without need 
for any request, the monthly cash requirements of the Judiciary or one-twelfths (1M2) of 
the total National Government support. 
The releases shall not be conditioned on 
approved work and financial plans, nor any financial report whatsoever. The Supreme 
Court shall only submit accomplishment and financial report, within thirty days from the 
opening of each regular session of Congress, to the President and to Congress. 
(c) 
All expenditures and revenues of the Supreme Court, and other inferior 
courts shall be subject to post-audit by the Commission on Audit, under pertinent laws, 
rules and regulations. 
SEC. 6. Power to Create Ofices and Reorganize the Administrative Structure. - 
(a) 
The Supreme Court shall have the authority to create such offices and to 
reorganize its administrative structure, both at the national and regional levels, for 
purposes of oversight or operations, in order to carry out the purposes of this Act, and to 
enable it to take on the additional functions and responsibilities stated in this Act, within 
the limit of its available resources. 
(b) 
The Supreme Court shall likewise have the authority to create such 
positions, and allocate the necessary budgetary support for the smooth operations of 
such offices. 
(c) 
The creation of offices at the regional level shall be guided by the principle 
of decentralization of administrative, financial, and personnel matters, and bringing court 
management closer to the litigants, and other users of the judicial system. 
SEC. 7. Salary and Personnel Administration. - 
(a) 
The Supreme court shall have the authority to determine the number and 
positions of court personnel necessary for the smooth functioning of the judiciary, within 
the limits of the approved appropriation guided by constitutional and legislative policies 
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on hiring and compensation. 
personnel shall be furnished the COA and the DBM. 
A copy of the annual approved staffing pattern of 
(b) 
The Supreme Court shall institute measures to provide sufficient, 
attractive and competitive compensation for judicial and non-judicial personnel that will 
ensure continuity of service and sustainability, and in support of a career development 
program. 
Such measures may include but not be limited to the broad-banding of 
salaries, and the provision of total cash compensation packages. 
SEC. 8. Judiciary Trust Fund. - There is hereby created a trust fund, to be 
known as the Judiciary Trust Fund, which shall be dedicated for the use of the 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. 
b. 
Such funds that may appropriated by Congress for the Judiciary; 
Increases in legal fees that are collected by the Judiciary pursuant to PD 
1949; 
Contributions of the local government units, under Sec. 3.c. of this Act; 
and 
All interest income of the trust fund. 
c. 
d. 
Within ninety (90) days from the effectivity of this Act, the DBM, DOF, and COA, 
in consultation with the Supreme Court, shall promulgate the rules and regulations 
governing the establishment and administration of the Judiciary Trust Fund. 
SEC. 9. 
Transfer of Physical Assets. - All real and personal properties not 
presently titled to the Supreme Court, which have been acquired for the judiciary shall, 
as far as practicable, be transferred to the Supreme Court, by other national or local 
government units, or government owned or controlled corporations, through an 
appropriate instrument, within six months from the effectivity of this Act. Thereafter, the 
Supreme Court shall exercise the judiciary ownership, management, control, as well as 
the securitv, maintenance and disposition, of such properties. 
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SEC. 10. Rules and Regulations. - The Supreme Court, in consultation with the 
DBM and the COA, shall promulgate the rules and regulations necessary to carry out 
the intent of this Act, save for those provisions where particular agencies of government 
are mandated to promulgate the implementing rules. 
The necessary rules and 
regulations shall be promulgated within six months from the effectivity of this Act. 
SEC. 11. Delegation of Authority. - The Supreme Court en banc, through an 
appropriate instrument, may also delegate to the Chief Justice, the Court Administrator, 
or other offices or heads of offices, which currently exist or may be created in the future, 
any and all powers, functions and responsibilities which are granted under this Act, 
under such conditions and under such periods as the Supreme Court en banc may 
allow. 
SEC. 12. 
Separability Clause. 
If any provision of part of this Act or the 
application thereof to any person or circumstance is held invalid, the remainder of this 
Act or the application of such provision or part to other persons or circumstances shall 
not be affected thereby. 
SEC. 13. Repealing Clause. - All laws, decrees, executive orders, or rules and 
regulations inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 14. Effectivify. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
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