Petitioners challenged the constitutionality of Section 44 of PD 1177, which authorized the transfer of public funds between government agencies. The Solicitor General questioned the legal standing of the petitioners and argued that one branch of government cannot be enjoined by another.
The court ruled that (1) the case was justiciable because the judiciary has the duty to declare unconstitutional acts of the legislature or executive, and taxpayers have standing to challenge the expenditure of public funds. (2) Paragraph 1 of Section 44 was unconstitutional because it allowed unlimited transfers of funds between agencies without regard to savings, overriding the safeguards of the 1973 Constitution for appropriations.
Petitioners challenged the constitutionality of Section 44 of PD 1177, which authorized the transfer of public funds between government agencies. The Solicitor General questioned the legal standing of the petitioners and argued that one branch of government cannot be enjoined by another.
The court ruled that (1) the case was justiciable because the judiciary has the duty to declare unconstitutional acts of the legislature or executive, and taxpayers have standing to challenge the expenditure of public funds. (2) Paragraph 1 of Section 44 was unconstitutional because it allowed unlimited transfers of funds between agencies without regard to savings, overriding the safeguards of the 1973 Constitution for appropriations.
Petitioners challenged the constitutionality of Section 44 of PD 1177, which authorized the transfer of public funds between government agencies. The Solicitor General questioned the legal standing of the petitioners and argued that one branch of government cannot be enjoined by another.
The court ruled that (1) the case was justiciable because the judiciary has the duty to declare unconstitutional acts of the legislature or executive, and taxpayers have standing to challenge the expenditure of public funds. (2) Paragraph 1 of Section 44 was unconstitutional because it allowed unlimited transfers of funds between agencies without regard to savings, overriding the safeguards of the 1973 Constitution for appropriations.
Topic: Legal Standing Title: DEMETRIA vs ALBA Reference: G.R. No. 71977
February 27 1987
Petitioners assail the constitutionality of the first paragraph of
Sec 44 of PD 1177 (Budget Reform Decree of 1977)as concerned citizens, members of the National Assembly, parties with general interest common to all people of the Philippines, and as taxpayers on the primary grounds that Section 44 infringes upon the fundamental law by authorizing illegal transfer of public moneys, with no specifications on its objectives and purposes amounting to undue delegation of legislative powers and allowing the President to override the safeguards prescribed for approving appropriations. The Solicitor General, for the public respondents, questioned the legal standing of the petitioners and held that one branch of the government cannot be enjoined by another, coordinate branch in its performance of duties within its sphere of responsibility. It also alleged that the petition has become moot and academic after the abrogation of Sec 16(5), Article VIII of the 1973 Constitution by the Freedom Constitution (which was where the provision under consideration was enacted in pursuant thereof). ISSUES 1.
Whether or not the case is Justiciable?
2.
Whether or not paragraph 1
of section 44 of PD 1177 is
unconstitutional? RULINGS
1.
Yes, where the legislature or the executive acts beyond the
scope of its constitutional powers, it becomes the duty of the
judiciary to declare what the other branches of the government had assumed to do, as void. Further, in terms of legal standing, it is well-settled that the validity of a statute may be contested only by one who will sustain a direct injury in consequence of its enforcement. Yet, there are many decisions nullifying at the instance of taxpayers, laws providing for the disbursement of public funds, upon the theory that the expenditure of public funds by an officer of the state for the purpose of administering an unconstitutional act constitutes a misapplication of such funds which may be enjoined at the request of a taxpayer. 2.
Yes, since it is contrary to section 16 paragraph 5 of Article 8
of the 1973 Constitution.
Paragraph 1 of Section 44 of P.D. No. 1177 unduly overextends
the
privilege
granted
under
said
Section
16[5],
It
empowers the President to indiscriminately transfer funds from one
department, bureau, office or agency of the Executive Department to any program, project or activity of any department, bureau or office included in the General Appropriations Act or approved after its enactment, without regard as to whether or not the funds to be transferred are actually savings in the item from which the same are to be taken, or whether or not the transfer is for the purpose of augmenting the item to which said transfer is to be made. It does not only completely disregard the standards set in the fundamental law, thereby amounting to an undue delegation of legislative powers, but likewise goes beyond the tenor thereof.
The prohibition to transfer an appropriation for one item to
another was explicit and categorical under the 1973 Constitution. However, to afford the heads of the different branches of the government
and
those
of
the
constitutional
commissions
considerable flexibility in the use of public funds and resources, the
constitution allowed the enactment of a law authorizing the transfer of funds for the purpose of augmenting an item from savings in another item in the appropriation of the government branch or constitutional body concerned.