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Expanding the Revenue Sources for the Bangsamoro


The Bangsamoro Basic Law (BBL) is expected to bring in additional financial resources to support the development of a reconstituted Autonomous Region of Muslim Mindanao (ARMM). More resources will go to the Bangsamoro through the devolution of some national taxes, higher shares from existing revenue sharing schemes, and a block grant that shall be automatically appropriated for the Regional Government. The Framework Agreement on the Bangsamoro (FAB) provides the general principles that the BBL needs to deal with in more detail. Some issues that Congress may have to consider include–(1) determining the size of the block grant, (2) the equalizing function of transfers, (3) the tendency of sub-national governments to depend on transfers, and (4) mechanisms to ensure fiscal responsibility and accountability. In the Philippines where the tax system remains highly centralized, fiscal transfers play an important role in bridging the gap between revenue capacities and expenditure assignments, and in equalizing opportunities across regions.


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Nov 23, 2014