A. What is Disbursement Allocation Program?

It is a policy implemented by the Executive Department on how the fund appropriated by

Congress would be spent. It is a policy by which the supposed savings of the government
would be pooled together to create a pool funds from which the funds for the priority
project of the government can be sourced out. The intention of the policy is to accelerate
public spending.

B. Is DAP unconstitutional?

No. DAP is not unconstitutional. DAP is not a fund, nor it is an appropriation but a
program or an administrative system of priority spending; and that the adoption of the
DAP was by virtue of the authority of the President as the Chief Executive to ensure that
laws were faithfully executed.

C. What is the power of augmentation?

It is the power of the President of the Senate, the Speaker of the House of
Representatives, the Chief Justice of the Supreme Court, and the heads of Constitutional
Commissions, when authorized by law to augment any item in the general appropriations
law for their respective offices from savings in other items of their respective
appropriations (Section 25(5), Article VI). When the appropriation for particular item in
the respective offices of the abovementioned officials are deficient, the same can be
augmented from the savings in other items of their respective appropriations.

D. What are the requisites for a valid transfer of funds under Section 25(5), Article VI of the
Constitution?

The transfer of appropriated funds, to be valid under Section 25 (5), supra, must be made
upon a concurrence of the following requisites, namely:

a. There is a law authorizing the President, the President of the Senate, the Speaker of
the House of Representatives, the Chief Justice of the Supreme Court, and the heads
of the Constitutional Commissions to transfer funds within their respective offices;

b. The funds to be transferred are savings generated from the appropriations for their
respective offices; and

c. The purpose of the transfer is to augment an item in the general appropriations law

e. The General Appropriation Law (GAA) provides:

Section 59. Use of Savings. — The President of the Philippines, the Senate President, the
Speaker of the House of Representatives, the Chief Justice of the Supreme Court, the Heads of
Constitutional Commissions enjoying fiscal autonomy, and the Ombudsman are hereby
authorized to augment any item in this Act from savings in other items of their respective
appropriations.

Is the provision valid?

No. Such provision in the GAA is not textually faithful to Section 25(5), Article VI of the
Constitution. Section 59 of the GAA does not carry the phrase “for their respective offices.” It
may imply that the savings may be applied to augment any item even outside the respective
offices of the above-mentioned officials in Section 59. Thus, said provision is not valid as it is
not in conformity with Section 25(5).

f. Can the President use the savings to augment an item not provided in the GAA?

The President cannot fund, through the savings, an item or items not provided in the GAA
because it is a violation of Section 25(5), Article VI of the Constitution. It is very clear from the
said provision that the item that may be augmented must be an item in the GAA. Thus, a non-
existing item cannot be augmented. Further, it will violate Section 29(1), Article VI that no
money shall be paid out of natural treasury except in pursuance of an appropriation law.

g. Supposing the Legislative Department’s appropriation is already deficient and there are no
more remaining savings that the Legislative Department could use, can the President transfer the
savings of the Executive Department to the Legislative Department, assuming that he is
empowered by law?

No. the President cannot do that. It is contrary to Section 25(5), Article VI. The augmentation
must be limited to items in their respective offices from the saving in other items of their
respective appropriations. T