3. Pimentel, Jr. v. Ochoa implementation, among others.

G.R. NO. 195770

July 17, 2012  DSWD executed MOAs with each participating LGUs to outline the
ANG, CEDRIC obligation of both parties during the 5-year implementation period.
TOPIC: FISCAL AUTONOMY AND SELF-RELIANCE
PETITIONER: AQUILINO Q. PIMENTEL, JR., SERGIO TADEO and NELSON  Congress then provided funding for the project as follows: P298K in
ALCANTARA
2008, P5 Billion in 2009, P10 Billion in 2010, and P21 Billion in 2011.
RESPONDENT: EXECUTIVE SECRETARY PAQUITO N. OCHOA and SECRETARY
CORAZON JULIANO-SOLIMAN OF THE DEPARTMENT OF SOCIAL WELFARE and
DEVELOPMENT (DSWD) ISSUE: W/N the 4Ps budget allocation under the DSWD violates Article II, Sec. 25
PONENTE: PERLAS-BERNABE, J. and Article X, Sec. 3 of the 1987 Constitution in relation to Sec. 17 of the LGC of
1991 by providing for the recentralization of the National Government in the
delivery of basic services already devolved to the LGUs
FACTS:
RULING:

 In 2007, the DSWD embarked on a poverty reduction strategy with the NO

poorest of the poor as target beneficiaries.
 The LGC does not imply a complete relinquishment of central
 It is dubbed as "Ahon Pamilyang Pilipino," it was pre-pilot tested in the government powers on the matter of providing basic facilities and
municipalities of Sibagat and Esperanza in Agusan del Sur; the services. The national government is not precluded from taking a direct
municipalities of Lopez Jaena and Bonifacio in Misamis Occidental, the hand in the formulation and implementation of national development
Caraga Region; and the cities of Pasay and Caloocan upon the release of programs especially where it is implemented locally in coordination
the amount of P50 Million Pesos under a Special Allotment Release Order with the LGUs concerned.
(SARO) issued by the Department of Budget and Management.  The petitioners argued that the manner by which 4Ps is implemented is
questionable. It is the LGU’s responsibility to deliver social welfare,
 On July 16, 2008, the DSWD issued AO 16, series of 2008, setting the agriculture, and health care services. Giving DSWD full control over the
identification of beneficiaries and the manner by which services are to be
implementing guidelines for the project renamed "Pantawid Pamilyang
delivered or conditionalities are to be complied with would have
Pilipino Program" (4Ps/CCTP), which provides cash grants to extreme
enhanced its delivery of basic services. This results in the
poor households to allow the members of the families to meet certain
"recentralization" of basic government functions”, which is contrary to
human development goals.” Eligible households selected from priority
the precepts of local autonomy and the avowed policy of
target areas are granted health and education benefits for a total annual
decentralization.
subsidy of P15k.
 The court ruled that Petitioners have failed to discharge the burden of
proving the invalidity of the provisions under the GAA of 2011. The
Constitution declares it a policy of the State to ensure the autonomy of
 AO 16 also institutionalized a coordinated inter-agency network among local governments ( Sec 3, Sec 14 Art 10 1987 Constitution). To fully
DepEd, DOH, DILG, the National Anti-Poverty Commission (NAPC) and secure to the LGUs the genuine and meaningful autonomy that would
LGUs. DSWD as lead implementing agency “oversees and coordinates develop them into self-reliant communities, Section 17 LGC vested upon
the LGUs the duties and functions pertaining to the delivery of basic
the implementation, monitoring, and evaluation of the program” while
services and facilities. However, par (c) of Sec 17 provides a categorical
the LGU is responsible for the availability of health and education exception of cases involving nationally-funded projects, facilities,
supply, and providing technical assistance for the Program
 programs and services. LAWS

Autonomy is either decentralization of administration or decentralization of power. Sec 3, Sec 14 Art 10 1987 Constitution:
Section 3. The Congress shall enact a local government code which
o Decentralization of administration - when the central shall provide for a more responsive and accountable local
government structure instituted through a system of
government delegates administrative powers to
decentralization xxx
political subdivisions in order to broaden the base of
government power and make local governments
Section 14. The President shall provide for regional development
‘more responsive and accountable’ and ‘ensure their
councils or other similar bodies composed of local government
fullest development as self-reliant communities.’ The
officials, regional heads of departments and other government
President exercises ‘general supervision’ over them, offices, and representatives from non-governmental organizations
but only to ensure that local affairs are administered within the regions for purposes of administrative decentralization
according to law.’ He has no control over their acts in to strengthen the autonomy of the units therein and to accelerate
the sense that he can substitute their judgments with the economic and social growth and development of the units in
his own. the region.

o Decentralization of power - involves an abdication of Section 17 of the LGC:

political power in favor of LGUs declared to be
autonomous. The autonomous government is free to SECTION 17. Basic Services and Facilities. –
chart its own destiny and shape its future with
minimum intervention from central authorities. This
amounts to ‘self-immolation,’ since the autonomous (a) Local government units shall xxx discharge the functions and responsibilities
government becomes accountable not to the central of national agencies and offices devolved to them pursuant to this Code. Local
authorities but to its constituency. government units shall likewise xxx discharge such other functions and
responsibilities as are necessary to xxx provision of the basic services and
 It is thus clear that the LGC does not imply a complete facilities enumerated herein.
relinquishment of central government powers on the matter of
providing basic facilities and services. The national government is (b) Such basic services and facilities include, but are not limited to, x x x.
not precluded from taking a direct hand in the formulation and
implementation of national development programs especially where (c) Notwithstanding the provisions of subsection (b) hereof, public works and
it is implemented locally in coordination with the LGUs concerned. infrastructure projects and other facilities, programs and services funded by the
National Government under the annual General Appropriations Act, other
 Ganzon v. Court of Appeals - while it is through a system of special laws, pertinent executive orders, and those wholly or partially funded
decentralization that the State shall promote a more responsive and from foreign sources, are not covered under this Section, except in those cases
accountable local government structure, the concept of local autonomy where the local government unit concerned is duly designated as the
does not imply the conversion of local government units into "mini - implementing agency for such projects, facilities, programs and services.
states." With local autonomy, the Constitution did nothing more than "to
break up the monopoly of the national government over the affairs of the
local government" and, thus, did not intend to sever "the relation of
partnership and interdependence between the central administration
and local government units."