REPUBLIC ACT NO. 12233 (JUDICIAL FISCAL AUTONOMY ACT)

BY ATTY. JULIUS GREGORY B. DELGADO 

On August 14, 2025, President Ferdinand Romualdez Marcos, Jr. signed Republic Act No. 12233, otherwise known as An Act Defining the Scope and Extent of the Fiscal Autonomy of the Judicial Branch of Government and for Other Purposes or simply known as the Judicial Fiscal Autonomy Act. Section 2 of RA 12233 states that it is the policy of the state to affirm and strengthen the powers of the Judiciary as co-equal branch of government. Towards the said end, the law seeks to affirm and strengthen fiscal autonomy of the judiciary enshrined under Section 3, Article VIII of the 1987 Philippine Constitution. The same section provides a state policy that the appropriations for the judiciary may not be reduced below the amount appropriated the previous year, and after approval of Congress, shall be automatically and regularly released.

Section 3 of RA 12233 also provides that the Supreme Court shall submit to the Department of Budget and Management (DBM) the annual budget of the judiciary which shall be included as an attachment to the National Expenditure Program. The law further provides that the DBM may submit its comments and recommendations. It should be noted that the law uses the word “may”, hence, it is not mandatory. 

Section 4 of RA 12233 also grants the Chief Justice the authority to augment any item for the Judiciary in the present appropriation law from the savings in other items appropriated for the Judiciary. The same section grants the Chief Justice, through an en banc resolution, the power to modify the allotment within the same activity or project: (1) from one allotment class to another, except capital outlays; or (2) from one operating unit to another. The law also mandates the DBM to automatically release, without need of any request, the monthly cash requirements of the Judiciary or one twelfth (1/12) of the total budgetary support. The law guarantees that the release shall not be conditioned on approved work and financial plans, or any financial report. The law, however, requires for the Supreme Court to submit quarterly accomplishment and financial reports to the President and Congress. The law provides that all expenditures and revenues of the Judiciary shall be subject to post-audit by the Commission on Audit (COA), under pertinent laws, rules, and regulations.

Section 5 of RA 12233 creates the Judiciary Trust Fund in lieu of the Judiciary Development Fund (JDF) under Presidential Decree No. 1949. The funds collected for or accruing to the Judiciary may be deposited and kept in the said trust fund, from which funds needed for its operations shall be drawn. The Judiciary Trust Fund shall include: a) Legal fees collected by the Judiciary pursuant to Rule 141 of the Rules of Court, as amended; b) Existing funds of the JDF: and c) All interests or income derived from the Judiciary Trust Fund. The same section of the law provides that the Chief Justice shall administer and allocate the Judiciary Trust Fund and shall approve and authorize disbursements and expenditures. To be deposited in an authorized government depository bank, expenditures of the Judiciary Trust Fund shall be subject to post-audit by the COA.

Section 6 of RA 12233 is a provision not so germane to the purpose of the law but it ensures access to justice especially the underprivileged and marginalized as it provides that the Supreme Court shall determine appropriate legal of fees and charges pursuant to Section 4 of Rule 141 of the Rules of Court, in accordance with the following policy objective: a) Access to justice, especially by the disadvantaged and poor sectors of society; b) Internal revenue generation for the Judiciary, to support its operations; and c) Capacity to pay of those who avail the services of the judicial system. 

Section 7 of RA 12233 pertains to the organization and reorganization of offices within the Judiciary which also highlights the creation of regional level offices guided under the principle of decentralization of administrative, financial and personnel matters, and the objective to bring court management closer to litigants and other persons who avail the services of the judicial system. I believe this has already been initiated by our Honorable Supreme Court by the creation of Regional Court Management Offices headed by a Regional Court Manager. 

Section 8 of RA 12233 pertains to salary and personnel administration which gives the Supreme Court the authority to determine the number and positions of court personnel necessary for the operations of the Judiciary. The highlight of this section is that the DBM shall act on the request of the Supreme Court for the issuance of Notice of Organization, Staffing, and Compensation Action (NOSCA) for newly created positions within one hundred twenty (120) days from receipt thereof. Finally on this section, the law provides that the Supreme Court shall institute measures to provide sufficient, attractive, and competitive compensation for judicial and non-judicial personnel to ensure continuity and sustainability of service, and to support career development.

Finally, under Section 9 of RA 12233, it is provided that within six (6) months from the effectively of the law, all real and personal properties not presently titled to the Supreme Court, and which have been acquired for the Judiciary, as afar as practicable, be transferred to the Supreme Court by other national or local government units, or government-owned or -controlled corporations, through an appropriate instrument. The Supreme Court shall exercise ownership, management, control, and be in charge of the security, maintenance, and disposition of such properties. 

While the law is effective already fifteen (15) days from its publication in the Official Gazette or in a newspaper of general circulation, Implementing Rules and Regulations will have to be crafted by the Supreme Court, in consultation with the DBM and the COA, within six (6) months from the effectively of the law. While fiscal autonomy is enshrined and guaranteed under the 1987 Philippine Constitution this law is still a boon to personnel of the judiciary and litigants (and their lawyers) alike as it defines and metes and bounds of the fiscal and administrative freedom of the judicial branch of government. Decentralization of administrative and personnel matters will also make the judiciary more efficient and effective in the administration of justice.