SC welcomes Judiciary Fiscal Autonomy Act, secures budget independence

Supreme Court Chief Justice Alexander G. Gesmundo and the rest of the associate justices welcomed the signing into law of Republic Act No. 12233, or the Judiciary Fiscal Autonomy Act, on 14 August 2025.

The law strengthens the constitutional guarantee under Article VIII, Section 3 of the Constitution, which states that the Judiciary shall enjoy fiscal autonomy.

It ensures that the Judiciary’s budget cannot be reduced below the previous year’s allocation and must be automatically and regularly released.

However, despite this constitutional provision, the Judiciary’s budgetary needs have sometimes gone unmet due to the complexities of the budget process, affecting the Supreme Court’s operations and modernization efforts.

The Judiciary Fiscal Autonomy Act addresses this by allowing the SC to submit its original budget proposal directly to Congress, as an attachment to the National Expenditure Program prepared by the Department of Budget and Management (DBM). The budget department may separately submit its comments and recommendations.

The law also ensures that the monthly cash requirements of the Judiciary—equivalent to one-twelfth of its total budget—will be released automatically by the DBM, without the need for additional paperwork or approvals.

The Judiciary will continue to submit quarterly reports to the President and Congress.

The Judiciary’s current budget now covers both national and regional operations, with the creation of the Office of Regional Court Managers across judicial regions.

All revenues and expenditures of the Judiciary, including those from the newly established Judiciary Trust Fund, will remain subject to post-audit by the Commission on Audit (COA).

The law also strengthens the Judiciary’s authority to address shortages in its workforce by requiring the DBM to act within 120 days on the SC’s requests for the issuance of the Notice of Organization, Staffing, and Compensation Action (NOSCA) for newly created positions.

This supports the SC’s power to determine the number and types of court personnel needed, within its budget and in line with constitutional and legislative policies.

The law also facilitates the transfer of ownership of properties acquired for the Judiciary to the SC, ensuring better control and management of its assets.

To implement the law, the SC will draft the Implementing Rules and Regulations (IRR) in consultation with the DBM and COA within six months from the law’s effectivity.