Gov’t to appeal SC ruling granting more funds to LGUs: Diokno

July 25, 2018

The government, through the Office of the Solicitor General, will appeal before the Supreme Court to reconsider its ruling granting more funds to local government units (LGUs) reflecting their shares from all national taxes, Budget Secretary Benjamin Diokno said on Wednesday.

“The DBM (Department of Budget and Management), in coordination with the Solicitor General will file a motion for consideration within 15 days, that’s allowed by law from the receipt of the decision. As of yesterday, July 24th, we have not yet received the decision,” Diokno told a  weekly forum in Manila.

The amount, estimated at P 160 billion, was not factored in the proposed 2019 budget.

Since the SC decision came when the DBM has submitted the proposed P 3.757-trillion budget for 2019, he said the P160 billion will not be included in next year’s appropriations.

“Last July 23, the President submitted the budget to Congress already, so it’s too late to insert that. The President’s budget reflects the administration’s national development priorities,” he said.

Diokno said enforcing the ruling next year might derail certain priority projects of the present administration since the 2019 budget has been submitted after the State of the Nation Address (SONA).

“So, we fear that undue application of the ruling  in the incoming fiscal year 2019 budget might distort the funding earmarked for the… projects identified by the national government,” Diokno said.

But he said the government will comply with the Supreme Court's decision when it is final and executory.

“Given the significance of the impact of the decision, we expect the Supreme Court en banc will take, this time, to meticulously thresh out the issue  and reconsider its decision,” Diokno added.

Diokno said the Supreme Court ruled the decision should be applied prospectively.

“We estimate that if its going to be ordered this year or rather for fiscal year 2019, it will cost us about P 160 billion… so the usual estimate of P  1.2 to P 1.5-trillion, that’s now off because the position is it’s prospectively,” he said. DMS