NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
W, i /tOff'[r of llii’ fc ^ ft ii'>
24 may-7 PI 2 :03
SENATE
Senate Bill No. 2659
RtCEiy-DBV
Introduced by: Senator Raffy T. Tulfo
AN ACT
DEFINING THE SCOPE AND EXTENT OF THE FISCAL AUTONOMY OF THE 
JUDICIAL BRANCH OF GOVERNMENT AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Constitution guarantees fiscal autonomy to the Judiciary, ensuring that 
appropriations for the Judiciary may not be reduced below the previous year's amount 
and shall be automatically released. However, in practice, the full extent of this 
constitutional provision remains constrained by the existing system overseen by the 
Department of Budget and Management.
The symbol of the judiciary, the lady justice or Themis Blindfolded has three 
symbols: the blindfold, the sword, and the weighing scale. These symbols represent 
an ideal judiciary, one that dispenses justice and weighs the rights of the people 
without being influenced by the identity or personality before her. And that is the very 
purpose of the grant of fiscal autonomy to the Judiciary in our Constitution. A 
financially independent judiciary is one that the people can trust to decide cases 
according to the evidence presented and laws in force at that moment.
Under this proposed measure, the budget proposal made by the Judiciary will 
be included in the National budget without revisions, while allowing the Department 
of Budget Management to submit proposed revisions if deemed necessary. 
Additionally, the bill grants the Supreme Court, through the Chief Justice, the authority 
to realign their budget from one expense account to another. Furthermore, it provides
#


? '' 4 ■
»i*Ky
A 
{
. ■' It-- t •'’■ '■ ■■ 
;• t '• - •
.' ■ ' * *
i ' I i >* *5 t\ ■ -i '■» ,


for the establishment of a Judiciary Trust Fund, which can be utilized to draw 
necessary funds for the operation of the Judiciary.
Granting the Judiciary full autonomy over its finances can significantly 
contribute to a more efficient and expedited administration of justice in the country. 
By ensuring that the Judiciary has control over its budgetary allocations and resources,
this bill aims to facilitate the prompt delivery of judicial services^nd uphold the rule 
of law.




NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
■/;0f,,f(roft!;c .€'Trr( ;1;
24 MAY -7 PI2:04
SENATE
Senate Bill No. 2659
Introduced by: Senator Raffy T. Tulfo
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 the House of Representatives of the Philippines In 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "The Fiscal Autonomy
2 
Act of the Judicial Branch of Government".
3
4 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
5 
affirm and strengthen the constitutional mandate and powers of the Judiciary as a
6 
coequal branch of government. To this end, and with the goal of ensuring the
7 
Judiciary's continuing independence, the Judiciary's fiscal autonomy mandated under
8 
Sec. 3, Art. 8, Constitution, shall be guaranteed, as such;
9 
a) In accordance with Sec. 3, Art. 8, of the Constitution, appropriations for
10 
the Judiciary may not be reduced below the amount appropriated for the
11 
previous year. After approval by Congress, the appropriations for the
12 
Judiciary shall be automatically and regularly released. The releases shall
13 
not be conditioned on the submission of any work and financial plans
14 
nor any financial report whatsoever.
15 
b) As provided under Sec. 16, Art. 8, of the Constitution, the Supreme Court
16 
shall be required to submit its annual report to the President and


' -r ' , ; i


1 
Congress within thirty days from the opening of each regular session of
2 
Congress.
3 
Sec. 3. Submission of Annual Budget Proposal. - The Supreme Court shall
4 
submit a budget of expenditures and sources of financing, reflecting total revenues
5 
and expenditures for the budget year, to Congress for approval with copy furnished
6 
to the Department of Budget and Management (DBM).
7 
Sec. 4. Proposed Revisions of the DBM. - The budget proposal prepared by the
8 
Supreme Court shall be incorporated in the draft national budget without any
9 
revisions. The DBM, however, may propose revisions thereon as it may deem
10 
appropriate; Provided, that it clearly indicates that the revisions are of its own and not
11 
of the Court's; Provided, further, that the DBM shall consult in writing the Supreme
12 
Court or the Chief Justice concerning its comments on, and suggested revisions to,
13 
the proposed budget for the Judiciary.
14 
Upon written request of the DBM, the Supreme Court or the Chief Justice may,
15 
in their discretion, submit reports of operation and income, current personnel, work
16 
and financial plans and similar reports to the DBM only for recording purposes. The
17 
submission thereof concerning funds previously released shall not be a condition
18 
precedent for subsequent fund releases.
19 
Sec. 5. Power to Realign the Budget Appropriated for the Judiciary. - Upon the
20 
approval of the total budget for the Judiciary:
21 
a) The Supreme Court or the Chief Justice shall have the power and
22 
authority to realign the budget from one expense account to another, or
23 
from one functional unit or category to another, without approval of the
24 
DBM. The Supreme Court or the Chief Justice may also utilize any
25 
savings from the budget for whatever expense, as the Court or Chief
26 
Justice may deem necessary and reasonable for the fulfillment of the
27 
Judiciary's mandate.
28 
b) The DBM shall automatically release to the Supreme Court, without need
29 
for any request, the monthly cash requirements of the Judiciary or one-
30 
twelfths (1/12) of the total National Government support. The releases
31 
shall not be conditioned on approved work and financial plans, nor any
32 
financial report whatsoever. The Supreme Court shall only submit




1 
accomplishment and financial reports, within thirty days from the
2 
opening of each regular session of Congress, to the President and to
3 
Congress.
4 
c) All expenditures and revenues of the Judiciary shall be subject to post-
5 
audit by the Commission 
on Audit, 
under pertinent 
laws, rules and
6 
regulations.
7 
Sec. 6. Judiciary Trust Fund. - There is hereby created a trust fund, to be known
8 
as the Judiciary Trust Fund, which shall be dedicated for the use of the judiciary. All
9 
the funds collected for, or accruing to the Judiciary may be deposited and kept in the
10 
said trust fund, and from which, funds needed for its operation shall be drawn. The
11 
Judiciary Trust Fund shall include, but not be limited to the following:
12 
a) Such funds that may be appropriated by Congress for the Judiciary;
13 
b) Increases in legal fees that are collected by the Judiciary pursuant to PD
14 
1949;
15 
c) Contributions of the local government units, under Sec. 3.c. of this Act:
16 
and
17 
d) All interest income and trust fund.
18 
Sec. 7. Power to Collect Fees and Raise Revenues. - The Judiciary shall continue
19 
to enjoy its authority under PD 1949 to collect legal fees, pursuant to the pertinent
20 
provisions of the Rules of Court. However, the fund utilization ratio of Eighty Percent
21 
(80%) for cost of living allowances, and Twenty Percent (20%) for office equipment
22 
and facilities shall no longer apply, considering that all legal fees prescribed In Rule
23 
141 of the Rules of Court, as amended, shall now constitute a part of the Judiciary
24 
Trust Fund, pursuant to Sec. 6 of this Act.
25 
(a) The Supreme Court shall determine the appropriate level of fees and
26 
charges pursuant to Sec. 3 of Rule 141 of the Rules of Court, in
27 
accordance with the following policy objectives:
28 
(1) Access to justice specially the disadvantaged and poor sectors of
29 
society;
30 
(2) Internal revenue generation for the judiciary, to support its
31 
operations; and




1 
(3) Charging the users of the judicial system in accordance with their
2 
ability to pay.
3 
(b) Local government units are strictly prohibited from providing allowances,
4 
supplies, materials, vehicles and other resources for the use of judges
5 
within their respective areas of jurisdiction, except for the use of the
6 
courtroom located within the municipal or city hall, or other buildings or
7 
facilities owned or leased by the local government unit, and the
8 
maintenance thereof.
9 
Sec. 8. Power to Create Offices and Reorganize the Administrative Structure. -
10 
The Supreme Court shall have the authority to create such offices and to reorganize
11 
its administrative structure, both at the national and regional levels, for purposes of
12 
oversight or operations, in order to carry out the purposes of this Act, and to enable
13 
it to take on the additional functions and responsibilities stated in this Act, within the
14 
limit of its available resources.
15 
The Supreme Court shall likewise have the authority to create such positions,
16 
and allocate the necessary budgetary support for the smooth operations of such
17 
offices. The creation of offices at the regional level shall be guided by the principle of
18 
decentralization of administrative, financial, and personnel matters, and to bring court
19 
management closer to the litigants, and other users of the judicial system.
20 
Sec. 9. Salary and Personnel Administration. - The Supreme Court shall have
21 
the authority to determine the number and positions of court personnel necessary for
22 
the smooth functioning of the judiciary, within the limits of the approved appropriation
23 
guided by constitutional and legislative policies on hiring and compensation. A copy of
24 
the annual approved staffing pattern of personnel shall be furnished the COA and the
25 
DBM.
26 
The Supreme Court shall institute measures to provide sufficient, attractive and
27 
competitive compensation for judicial and non-judicial personnel to ensure continuity
28 
and sustainability of service, and support career development. Such measures may
29 
include but not be limited to the broadbanding of salaries, and the provision of total
30 
cash compensation packages.
31 
Sec. 10. Transfer of Physical Assets. - All real and personal properties not
32 
presently titled to the Supreme Court, which have been acquired for the Judiciary


I •
■V ■... 
V : ■ 
v;.j ■
- I 
'J >■’ r -
, - ; . xV. '- 
-■
■' ■■‘■iiiio :K. 
■ <■''
iC 
'T;
"')i' ' 'ri'i
It
‘ 
' i ^ v.'1
ij 
' ■! . ;' 
1
■ ‘i.X 
rri' ■
.: w;
■ ' j ■ x! ■ ' I 
' J
1 . .
^ 
■ V ■. r 
^ ■
; " r.v': : '■ 
r -J: >"i, ■' 'Mi‘ - 
■ !0 ;-v v'' u:1
--■ )' ^' :
ir!
XV.'■
' ; !f.
’. r ■ 11
■: r jf. .Ji. *•
• ifr
'■cirTR.i'-'
I-:'
■ I ■! • 
;ir:' :3( .
X 
.if
j'r: 'f o 
■ 
1 cryy I-
: Jr , 
-1 J i ’ I.,1'* • '"I 
'.f-
' * I. 
j - 
■
*;■’ r 
: a'-.
1 ‘ f
X >' i' ,' 
r » ''r: 
v’til'x'. L, '■
' I' ' 
r;: r,- 
1 
1 “'11 ■*'' : ‘ 'ij i JDiJ, I
' 3' 
1‘t'.C i ■(' 
'
' » -f ;
/ f , - 'y
..■V ,.-.yl


1 
shall, as far as practicable, be transferred to the Supreme Court, by other national or
2 
local government units, or government owned or controlled corporations, through an
3 
appropriate instrument, within six months from the effectivity of this Act. Thereafter,
4 
the Supreme Court shall exercise the fiduciary ownership, management, control, as
5 
well as the security, maintenance and disposition, of such properties.
6 
Sec. 11. Delegation of Authority. - The Supreme Court en banc, through an
7 
appropriate instrument may also delegate to the Chief Justice, the Court Administrator,
8 
or other offices or heads of offices, which currently exist or may be created in the
9 
future, any and all powers, functions and responsibilities which are granted under this
10 
Act, under such conditions and under such periods as the Supreme Court en banc may
11 
allow.
12 
Sec. 12 Implementing Rules and Regulations. - The Supreme Court, In 45
13 
consultation with the DBM and the COA, shall promulgate the rules and regulations
14 
necessary to carry out the intent of this Act, save for those provisions where particular
15 
agencies of government are mandated to promulgate the implementing rules. The
16 
necessary rules and regulations shall be promulgated within six (6) months from the
17 
effectivity of this Act.
18 
Sec. 13. Separability Clause. - If any provision of this Act shall be held
19 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
20 
full force and effect.
21 
Sec. 14. Repealing Clause. - All laws, executive orders, rules, and regulations
22 
inconsistent with or contrary to this Act, are hereby deemed repealed or modified
23 
accordingly.
24 
Sec. 15. Effectivity Clause. - This Act shall take effect after fifteen (15) days
25 
following its publication in the Official Gazette or in at least two (2) newspapers of
26 
national circulation.
Approved,