The debt dilemma: Constitutionality of the automatic appropriation to debt servicing

• Main Authors: Go, Giancharlie P., Masiglat, John Beau B.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Commercial Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17808
• Institution: De La Salle University

On July 30, 1977, President Ferdinand Marcos enacted the Budget Reform Decree of 1977 which included a provision for automatic appropriation of the State's fund for the service of its debts. Though the primary objectives and objectives and plans, the automatic appropriations coupled within the decree shows inconsistencies with the Present Constitution of the Philippines. The main issue of this research is the constitutionality of the Automatic Appropriations for it is inconsistent with the state policies of the Present Constitution as to its effect on the state and its sovereign. This research focused on the inconsistency of the said appropriations to the state policy that promotes just and dynamic social order and the freedom of the people from poverty. The research was then narrowed down to the principle of social justice which is closely related to the aforementioned state policy. This research concludes that the automatic appropriations provision is unconstitutional for it disregards the welfare of the society which is a clear violation of the principle of social justice that is aimed to bring the greatest good to the greatest number.