Araullo v.

Aquino, DAP Case

A. Factual Antecedents
1. The DAP and its origins
a. Memoranda from the DBM Sec Abad to
the President
DAP had been existing since 2011.
Through the memoranda which specified the sources of fund for the DAP, the DBM issued NBC No. 541 entited Adoption of Operational Efficiency Measure Withdrawal of Agencies
Unobligated Allotments as of June 30 !0"!# With the appro$al of the %resident &ec Abad was authori'ed to withdraw unobligated allotments of agencies that had low le$el of obligations#
(hese unobligated allotments)
* +ontinuing allotment charged against the ,AA for -. !0""
* +urrent allotment charged against the ,AA for -. !0"!
Accdng to DBM, DAP funds were sourced from !A"#$%!, coming from&
* 'nreeased appropriations (from unfied positions that apsed at the end of the )ear* and sow mo+ing pro,ects and discontinued pro,ects-
* A+aiabe baances from competed or discontinued pro,ects
* .ithdrawn unobigated aotments
Through a Memorandum, Ma) 20, 201/& DBM stated that DAP wi be used for the foowing purposes&
* To augment priorit) pro,ects
* To Aid !pecia Purpose 0unds
* To modify the original allotment due to priority projects and implementation of new activities (such as increase1decrease of appropriations-
B. Preliminary Matters
1. Courts exanded o!er o" #udicial
$evie!
%. Prima "acie sho!ing &xecutive's
grave a(use o" discretion
a. Lack of audit findings doesnt negate grave
abuse of discretion
). Tanscendental *mortance o" issues
+. #usticia(ility and Political ,uestions
-. Courts (oundary .eeing role in
times o" olitical uheaval
A petition for certiorari and prohibition was fied to direct) in+o2e the 3ourt4s power for 5udicia 6e+iew&
1. Actua case or contro+ers) 7 +ioation of 3onstitution
2. Must be raised b) the proper part) (ocus standi- 7 tax pa)ers in+o+ing pubic funds
/. Must be raised at the eariest possibe opportunit)
8. constitutiona issue must be the +er) is mota
1. 3ourt4s expanded power& to determine .9$ there has been a gra+e abuse of discretion amounting to ac2 or excess ,urisdiction of either :egisati+e or ;xecuti+e.
2. Prima facie case of abuse& ;xecuti+e committed gra+e abuse of discretion in the handing of pubic funds.
/. Transcendenta #mportance&
< character of funds& billions of ta/ payers0 money
< presence of a cear +ioation of the 3onstitution& transfer of appropriations with gra$e abuse of discretion in $iolation of Art 12 &ec !3 435) Transfer of appropriation, within their
respective offices.
* ocus standi& ta/ payers ha$e the direct and specific interest in the case
8. 5usticiabiit)& issue is of a ega matter, not poitica or economic.
=. 3ourt ser+es as the boundar) 2eeper when there is gra+e abuse of discretion among ;xec and :egis.
C. /u(stantive Matters 1.a- !eparation of Powers& The 3ongress is granted the power to APP69P6#AT;, whie the ;xecuti+e is granted the power to #MP:;M;$T the programs funded b) these appropriations.
1. DAP violates the rinciles o" chec.s and
(alances, and the searation o" o!ers
a. The principle of separation of powers and checks and
balances in the budgetar process
b. !ow DAP violates these principles
%. DAP violates the rohi(ition against the
trans"er o" aroriations
a. "eneral prohibition against the transfer of
appropriations
b. The need for actual Savings before augmenting is
e#ercised
c. Savings cannot be used to fund programs and pro$ects
%&T appropriated b 'ongress
d. Additional limitations imposed b 'ongress under "AA
e. Sources of DAP funds cannot (ualif as savings
f. DAP violates the prohibition against )MP&*%DM+%T
g. ,ualifications to the President-s fle#ibilities in budget
e#ecution
h. DAP in funding items %&T found in the "AA violated
the 'onstitution
). DAP violates secial conditions "or the release
o" the 01P$23$AMM&D F01D int he %411
and %41% 3AAs
+. The D2CT$*1& 2F 2P&$AT*5& FACT
3hec2s and Baances& B'D%;T P693;!! 7
1. Budget preparation and proposa stage 7 the ;xecuti+e is gi+en the initiati+e
2. The executi+e submits to 3ongress (within /0 da)s from the start of a reguar session- the budget which wi ser+e as the basis for an APP69P6#AT#9$ B#:: (this budget
proposa contains the appropriations 6;39MM;$D;D b) the President.-
/. 3ongress has the authorit) to determine the countr)4s poic) and !P;$D#$% P6#96#T#;!. !ec 2> (1- Art "#& $o mone) sha be paid out of the Treasur), except in pursuance
of an APP69P6#AT#9$ MAD; B? :A..
8. The President ma) exercise his +eto power o+er the Appropriation bi , which ma) be countered b) 3ongress b) a +ote of 21/ of a its members.
@This chec2 and counter<chec2ing pre+ents predominance of one department o+er the other.
1.b- Aow DAP +ioated these principes&
A. B) pooing funds that cannot be cassified as !A"#$%! (these are unobigated aotments- @By manipulating these unclassified funds to finance items not reflecting on the GAA, the
DAP in effect allowed the President to indirectly veto items of the GAA without subjecting them to the !" overriding veto of #ongress.
B. B) using these funds to finance pro,ects outside the ;xecuti+e for pro,ects without an APP69P6#AT#9$ co+er. @Aows the creation of a budget within a budget* hence the use of funds not
cassifiabe as sa+ings disregards the items for which these funds had been appropriated, and aows their use for items not appropriated.