FACTS
Wenceslao Pascual, Provincial Governor of Rizal, filed an action for declaratory relief with injunction on the ground that RA 920 (An Act Appropriating Funds for Public Works) contained in Section 1-C (a) an item of P85,000 “for the construction, reconstruction, repair, extension and improvement” of Pasig feeder road terminals privately owned by respondent Zulueta. The latter filed a motion to dismiss on the ground that Pascual had no legal capacity to sue, and that the petition did not state a cause of action. The lower court granted the said motion.
RULING
The Supreme Court ruled in favor of Pascual.
As a taxpayer, Pascual had legal standing. The SC also ruled that the subject appropriation was illegal because it appropriated public funds for the improvement of private property. The right of the legislature to appropriate funds is correlative with its right to tax, and under constitutional provisions against taxation except for public purposes. Taxing power must be exercised for public purposes only.
The test of the constitutionality of a statute requiring the use of public funds is whether the statute is designed to promote the public interest, as opposed to the furtherance of the advantage of individuals, although each advantage to individuals might incidentally serve the public.
