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MANILA, Philippines–The Supreme Court on Tuesday modified its July 2014 decision declaring parts of the Disbursement Acceleration Program (DAP) unconstitutional.
Theodore Te, the high court spokesperson, said the Supreme Court en banc partially granted the motion for reconsideration filed by the Office of the Solicitor General.
In its recent ruling, the high court said only the declaration of savings before the fiscal year and cross-border transfer of savings are unconstitutional.
1. The withdrawal of unobligated allotments from the implementing agencies, and the declaration of the withdrawn unobligated allotments and unreleased appropriations as savings prior to the end of the fiscal year and without complying with the statutory definition of savings contained in the General Appropriations Act.
2. The cross-border transfers of the savings of the Executive to augment the appropriations of other offices outside the Executive.
The high court added that only the authors can be held liable, unless a proper tribunal found that they acted in good faith. It now excludes from liability the proponents and implementors of the DAP prior to the ruling.
Last year, the high court struck down National Budget Circular No. 541 and other related issuances related to the DAP issued by the Department of Budget and Management (DBM).
The circular allows withdrawn allotments to be used to augment existing programs and projects of any agency. It also allows withdrawn allotments to fund priority programs and projects not considered in the 2012 budget but are expected to be implemented during the current year.
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