NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
25 FFB-4 P6 :42
SENATE 
S. No. 2982
(In Substitution of Senate Bill Nos. 1996, 2111, and 2659)
Prepared and submitted jointly by the Committees on Justice and Human Rights; and 
Finance with Senators Zubiri, Villanueva, Go, Tulfo, and Pimentel III as authors thereof
AN ACT
DEFINING THE SCOPE AND EXTENT OF THE FISCAL AUTONOMY OF THE 
JUDICIAL BRANCH OF THE GOVERNMENT AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short 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 affirm and strengthen the Constitutional mandate and powers of the Judiciary as a
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co-equal branch of government. To this end, and with the goal of ensuring the
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Judiciary's continuing independence, the Judiciary's fiscal autonomy mandated under
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Section 3, Article VIII, Constitution shall be guaranteed, as follows:
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a) In accordance with Section 3, Article VIII, of the 1987 Constitution,
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appropriations for the Judiciary may not be reduced below the
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amount appropriated for the previous year. After approval by
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Congress, the appropriations for the Judiciary shall be automatically
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and regularly released.
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b) As provided under Section 16, Article VIII, of the 1987
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Constitution, the Supreme Court shall, within thirty days from the
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opening of each regular session of the Congress, submit to the


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President and the Congress an annual report on the operations and 
activities of the Judiciary.
SEC. 3. Submission of Annuai Budget Proposai. - The Supreme Court 
shail present to Congress the Judiciary's annuai budget proposai detailing its budget 
of expenditures and sources of financing (BESF), reflecting totai revenues and 
expenses.
The Supreme Court shali iikewise furnish copies of its annual budget proposal 
to the Department of Budget and Management (DBM).
The DBM 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 Supreme Court; 
Provided, further, that the DBM shali consult in writing the Supreme Court or the Chief 
Justice concerning its comments on, and suggested revisions to, the proposed budget 
for the Judiciary.
SEC. 4. Augmentation, Automatic Release, and Post-Audit - Upon the 
approval of the total budget for the Judiciary:
a) The Chief Justice of the Supreme Court is authorized to augment 
any item in the general appropriations law for the Judiciary from 
savings in other items appropriated for the Judiciary.
b) The DBM shall automatically release to the Supreme Court, without 
need for any request, the monthly cash requirements of the 
Judiciary or one-twelfth (1/12) of the total budgetary support. The 
releases shall not be conditioned on approved work and financiai 
plans, nor any financial report whatsoever. The Supreme Court shall 
submit quarterly accomplishment and financial reports to the 
President and to Congress.
c) All expenditures and revenues of the Judiciary shall be subject to 
post-audit by the Commission on Audit, under pertinent laws, rules, 
and regulations.
SEC. 5. Judiciary Trust Fund. - There is hereby created a trust fund, to be 
known as the Judiciary Trust Fund, which shall be dedicated to the use of the Judiciary. 
Ail the funds collected for or accruing to the Judiciary may be deposited and kept in
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the said trust fund, from which funds needed for its operation shall be drawn. The
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Judiciary Trust Fund shall include, but not be limited to the following:
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a) Such funds as may be appropriated by Congress for the Judiciary;
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b) Legal fees collected by the Judiciary pursuant to Rule 141 of the
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Rules of Court, as amended;
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c) Existing funds of the Judicial Development Fund (JDF); and
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d) All interest income.
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SEC. 6. 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 the
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pertinent provisions of the Rules of Court: Provided, that, the fund utilization ratio of
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Eighty Percent (80%) for cost of living allowances, and Twenty Percent (20%) for
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office equipment and facilities shall no longer apply.
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The Supreme Court shall determine the appropriate level of fees and charges
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pursuant to Sec. 3 of Rule 141 of the Rules of Court, in accordance with the following
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policy objectives:
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a) Access to justice especially the disadvantaged and poor sectors of
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the society; and
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b) Internal revenue generation for the judiciary, to support its
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operations.
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SEC. 7. Power to Create Offices and Reorganize the Administrative
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Structure. - The Supreme Court shall have the authority to create such offices and
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to reorganize its administrative structure, both at the national and regional levels, for
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purposes of oversight or operations, to carry out the purposes of this Act, and to
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enable it to take on the additional functions and responsibilities stated in this Act,
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within the limit of its available resources.
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The Supreme Court shall likewise have the authority to create such positions
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and allocate the necessary budgetary support for the smooth operations of such
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offices. The creation of offices at the regional level shall be guided by the principle of
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decentralization of administrative, financial, and personnel matters, and to bring court
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management closer to the litigants, and other users of the judicial system.
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SEC. 8. 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 approved 
appropriation guided by constitutional and legislative policies on hiring and 
compensation. A copy of the annual approved staffing pattern of personnel shall be 
furnished to the COA and the DBM.
The Supreme Court shall institute measures to provide sufficient, attractive, 
and competitive compensation for judicial and non-judicial personnel to ensure 
continuity and sustainability of service, and support career development.
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 fiduciary ownership, management, control, as 
well as the security, maintenance, and disposition, of such properties.
SEC. 10. Implementing 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 (6) months from the 
effectivity of this Act.
SEC. 11. Separability Clause. - If any part or provision of this Act is declared 
invalid or unconstitutional, the other parts or provisions hereof not otherwise affected 
shall remain valid and effective.
SEC. 12. Repealing Clause. - All laws, decrees, orders, issuances, rules, and 
regulations or parts thereof, that are inconsistent with this Act are hereby repealed or 
modified accordingly.
SEC. 13. Effectivity. - This Act shali take effect after fifteen (15) days 
following its complete publication in the Official Gazette or in a newspaper of general 
circulation.
Approved,