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July 11, 2022

EXECUTIVE POWERS OF THE PRESIDENT: POWERS RELATING TO REVENUE, APPROPRIATION, AND TARIFF MEASURES

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Published — July 11, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 

 

After reading “Executive Powers of the President: Powers Relating to Revenue, Appropriation, and Tariff Measures”, read also “What is the President’s power of control and supervision?”

  • The fixing of rates is essentially a legislative power.

  • Permissible delegations include the delegation of tariff powers of the President.

  • The procedure in approving appropriations for the Congress shall strictly follow the procedure for approving appropriations for other departments and agencies.

As a general rule, all appropriation, revenue or tariff bills, bills authorizing increase of the public debt, bills of local application, and private bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments. (Section 24, Article VI, 1987 Constitution of the Philippines)

 

The fixing of rates is essentially a legislative power. (Philippine Interisland Shipping Association vs. Court of Appeals, G.R. No. 100481, January 22, 1997)

 

Based on the principle of “potestas delegate non potest delegare,” a delegated power constitutes not only a right but a duty to be performed by the delegate through the instrumentality of his own judgment and not through the intervening mind of another. As such, permissible delegations include the delegation of tariff powers of the President.

 

The law says:

(2) The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government. (Section 28(1), Article VI, 1987 Constitution)

 

Thus, when the fixing of rates is delegated to the President, he may exercise it directly. The rationale for delegation falls on the highly technical nature of international commerce, and the need to constantly and with relative ease adapt the rates to prevailing commercial standards.

 

What is the prohibition against transfer of appropriations?

The law says:

(5) No law shall be passed authorizing any transfer of appropriations; however, 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 Constitutional Commissions may, by law, be authorized 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, 1987 Constitution)

 

The Congress may not increase the appropriations recommended by the President for the operation of the Government as specified in the budget. The form, content, and manner of preparation of the budget shall be prescribed by law. (Section 25(1), Article VI, 1987 Constitution) The provision or enactment in the general appropriations bill must be specifically related to some particular appropriation therein. (Section 25(2), Article VI, 1987 Constitution) Special appropriations bill, on the other hand, shall specify the purpose for which it is intended, and shall be supported by funds actually available as certified by the National Treasurer, or to be raised by a corresponding revenue proposed. (Section 25(4), Article VI, 1987 Constitution)

 

The procedure in approving appropriations for the Congress shall strictly follow the procedure for approving appropriations for other departments and agencies. (Section 25(3), Article VI, 1987 Constitution)

 

What is the Budgetary Power of the President?

The law says:

The President shall submit to the Congress within thirty days from the opening of every regular session, as the basis of the general appropriations bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures. (Section 22, Article VII, 1987 Constitution)

 

What happens if the Congress fails to pass the general appropriations bill?

The law says:

If, by the end of any fiscal year, the Congress shall have failed to pass the general appropriations bill for the ensuing fiscal year, the general appropriations law for the preceding fiscal year shall be deemed reenacted and shall remain in force and effect until the general appropriations bill is passed by the Congress. (Section 25(7), Article VI, 1987 Constitution)


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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