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Following the insistent requests of high-ranking Department of Public Works and Highways (DPWH) officials, Congress enacted an appropriation law…

2026 Bar Exam · Political & Public International Law · Question 3 · Essay

The question

Following the insistent requests of high-ranking Department of Public Works and Highways (DPWH) officials, Congress enacted an appropriation law containing provisions that give individual legislators the discretion to determine, post- enactment, how much funds would go to specific Flood Control Projects or beneficiaries which they themselves also determine. Consequently, disbursements were made by the Department of Budget and Management (DBM) pursuant thereto. During the investigations in the Senate Blue Ribbon Committee, DPWH officials and some contractors testified that most of the contracts for flood control projects were awarded to contractors owned by family members of, or endorsed by the legislators. They also mentioned that billions of pesos of “kickbacks” were delivered to certain legislators who “inserted” the funds for the flood control projects, which were found to be “ghost projects,” unfinished, abandoned, or of substandard quality. Is the appropriation law unconstitutional? Explain.

Held

Yes, the appropriation law is unconstitutional under Article VI, Section 25 of the 1987 Constitution and as held in Abante v. Budget, G.R. No. 208566 (2013) and Belgica v. Secretary, G.R. No. 210503 (2019).

Explanation

The Constitution mandates that Congress may not increase appropriations recommended by the President and that appropriations must be specific and limited to particular items. The President has the power of item veto over the General Appropriations Act (GAA), which requires that appropriations be clearly defined so that the President can exercise this power effectively. The Constitution also prohibits the transfer of appropriations except under limited circumstances and requires that discretionary funds be disbursed only for public purposes with proper vouchers and guidelines.

The Supreme Court in Abante v. Budget held that lump-sum appropriations that allow legislators post-enactment discretion to identify projects and beneficiaries effectively create a "budget within a budget." This practice circumvents the President's power of item veto and violates the separation of powers by allowing legislators to exercise executive functions in budget execution. The Court found such laws unconstitutional because they fail to specify particular appropriations and allow further determination of amounts and purposes after enactment.

In Belgica v. Secretary, the Court reaffirmed that appropriation laws granting legislators post-enactment discretion over projects and funds violate the Constitution. The Court declared unconstitutional all laws and practices that permit legislators to intervene in budget execution stages such as project identification and fund release, as these encroach on the Executive's authority and breach the principle of non-delegability of legislative power.

Application to the facts

In this case, the appropriation law grants individual legislators the discretion, after enactment, to determine how much funds go to specific flood control projects and beneficiaries. This means the law does not specify particular appropriations at the time of enactment, but leaves these decisions to legislators post-enactment. This is precisely the kind of lump-sum, post-enactment legislative identification budgeting system condemned by the Supreme Court in Abante and Belgica.

The fact that disbursements were made pursuant to this law, and that contracts were awarded to contractors linked to legislators who received kickbacks, further illustrates the dangers of such a system: lack of transparency, accountability, and the potential for corruption. The law's provisions violate the constitutional requirement that appropriations be specific and subject to the President's item veto, and unlawfully delegate legislative power to individual legislators in budget execution.

  • a constitutional provision is among the sources and controls over any conflicting statute
This is general legal information, not legal advice.