PROVINCE OF BATANGAS vs. ROMULO
G.R. No. 152774, May 27, 2004
Case Digest, September 27, 2020
Facts:
On December 7, 1998, then President Joseph Ejercito Estrada issued Executive Order (E.O.) No. 48 entitled “ESTABLISHING A PROGRAM FOR DEVOLUTION ADJUSTMENT AND EQUALIZATION” which was later renamed as the LOCAL GOVERNMENT SERVICE EQUALIZATION FUND (LGSEF). The program was established to “facilitate the process of enhancing the capacities of local government units (LGUs) in the discharge of the functions and services devolved to them by the National Government Agencies concerned pursuant to the Local Government Code.” The Oversight Committee constituted under Section 533(b) of Republic Act No. 7160 or The Local Government Code of 1991, has been tasked to formulate and issue the appropriate rules and regulations necessary for its effective implementation. Thereafter the Oversight Committee issued Resolutions Nos. OCD-99-003, OCD-99-005, OCD-99-006, OCD-2000-023, OCD-2001-029 and OCD-2002-001. The petitioner submits that the assailed provisos in the GAAs and the OCD resolutions, insofar as they earmarked the amount of five billion pesos of the IRA of the LGUs for 1999, 2000 and 2001 for the LGSEF and imposed conditions for the release thereof.
Upon receipt of a copy of the above resolution, Gov. Mandanas wrote to the individual members of the Oversight Committee seeking the reconsideration of Resolution No. OCD-2002-001. He also wrote to Pres. Macapagal-Arroyo urging her to disapprove said resolution as it violates the Constitution and the Local Government Code of 1991.
On January 25, 2002, Pres. Macapagal-Arroyo approved Resolution No. OCD-2002-001.
The Province of Batangas, represented by its Governor, Hermilando I. Mandanas, filed a petition for certiorari, prohibition and mandamus under Rule 65 of the Rules of Court, as amended, to declare as unconstitutional and void certain provisos contained in the General Appropriations Acts (GAA) of 1999, 2000 and 2001, insofar as they uniformly earmarked for each corresponding year the amount of five billion pesos (₱5,000,000,000.00) of the Internal Revenue Allotment (IRA) for the Local Government Service Equalization Fund (LGSEF) and imposed conditions for the release thereof.
Named as respondents are Executive Secretary Alberto G. Romulo, in his capacity as Chairman of the Oversight Committee on Devolution, Secretary Emilia Boncodin of the Department of Budget and Management (DBM) and Secretary Jose Lina of the Department of Interior and Local Government (DILG).
Whether the assailed provisos contained in the GAAs of 1999, 2000 and 2001, and the OCD resolutions infringe the Constitution and the Local Government Code of 1991.
Yes, the assailed provisos infringe the Constitution and the Local Government Code of 1991.
Under Section 6, Article X of the Constitution, Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them. Also, in Section 284 of the Local Government Code provides that, beginning the third year of its effectivity, the LGUs’ share in the national internal revenue taxes shall be 40% and Section 285 on the allocation to Local Government Units in the internal revenue allotment.
In the case at bar, the respondent put on hold the distribution and release of the five billion pesos LGSEF and subject the same to the implementing rules and regulations, including the guidelines and mechanisms prescribed by the Oversight Committee from time to time. Like Section 4 of A.O. 372, the assailed provisos in the GAAs of 1999, 2000 and 2001 and the OCD resolutions effectively encroach on the fiscal autonomy enjoyed by the LGUs and must be struck down.
Therefore, the provisos violates the Constitution and the Local Government Code.
Real LexEcon 