The Government of the Philippines (GPH) peace panel defended
the forrmula for the annual financial grant for the proposed Bangsamoro
government mandated by the Bangsamoro Basic Law (BBL).
GPH peace panel member Senen C. Bacani on Friday said the
appropriation for the said territory is comparable to the amount currently
received by the Autonomous Region in Muslim Mindanao (ARMM).
According to the draft of the BBL, the formula for the
annual block grant is four percent of the net national internal revenue collections
of the Bureau of Internal Revenue less the internal revenue allocation of local
government units. The bill also stipulates that the computation should be based
from the actual collections from the third fiscal year preceding the current
fiscal year.
Bacani made the statement in response to Senate committee on
local government chair Ferdinand Marcos Jr., comment stating the formula for
the said grant seems to be got from thin air.
The GPH peace panel member defended the formula for the
Bangsamoro's annual block grant, commenting that the four (4) percent used in
the formula is an approximation of what the ARMM currently receives.
For the current fiscal year, PhP25.2 billion is the subsidy
of the national government to the ARMM. Using the formula in the proposed BBL,
the Bangsamoro government can expect to receive PhP27 billion for its initial
year of operation, just a slight increase from its current budget of 25.2
billion.
The former agriculture secretary added that the increase
which is coupled with the other revenue generation and wealth-sharing
arrangements, was “just enough for the Bangsamoro to provide basic social
services and to catch-up with the rest of the country.
The government peace panel member noted that unlike in the
rest of the country that is served by the Department of Education, the cost of
public primary and secondary education is shouldered by the autonomous region,
along with the delivery of all other devolved social and economic functions.
"The formula was based on a thorough review of the
current and anticipated requirements of the region, and takes into account the
fact that the region will be responsible for financing the salaries of teachers
and health workers, among others," said Bacani.
Special Development Fund, power to contract loans scrapped
Among the numerous stipulations removed by Senator Marcos is
the Bangsamoro provision for a Special Development Fund (SDF).
According to the original version of the BBL drafted by the
Bangsamoro Transition Commission (BTC), a total of PhP17 billion will be
released by the national government to the Bangsamoro “for rehabilitation and
development purposes”.
Of this amount, PhP7 billion will be released following the
ratification of the law while the remaining PhP10 billion will be paid out over
five years at the rate of PhP2 billion per year. Part of the SDF was supposed
to finance a women’s peace fund “in support of gender as a cross-cutting
concern.” The SDF demonstrates the Philippine government's commitment to fund
the rehabilitation and development of the Bangsamoro and can be used as
counterpart funds for grants coming from donor institutions or countries. This
leveraging can result to 3 or 4 times more than the amount in the SDF thus
maximizing the benefit to the country.
Another provision deleted by Marcos was the Bangsamoro’s
power to contract loans, credits, and other forms of indebtedness.
Bacani said, however, that local governments already have
the authority to contract domestic loans on their own, including foreign or
non-peso denominated loans with the approval of the Bangko Sentral ng Pilipinas
(BSP).
He commented that should be clarified by the lawmakers as
contracting loans is an essential part of fiscal management.
“Contracting indebtedness is being done all over the world
by all kinds of entities and enterprises. Loaning does not automatically mean
you are losing money. For instance, the Philippines
The former agriculture secretary added that “the purpose of
the SDF is for the immediate takeoff of the Bangsamoro, and the loans may come
handy in generating economic activity especially during the autonomous
government’s initial years.”
In his sponsorship speech on the Basic Law for the
Bangsamoro Autonomous Region (BLBAR) filed as Senate Bill No. 2894, Sen. Marcos
failed to provide an explanation on why the aforementioned fiscal provisions
have been deleted.
Bangsamoro’s power on economic zones undermined
Republic Act No. 9054, the implementing law of the ARMM,
allows for the establishment of a Regional Economic Zone Authority (REZA)
tasked to “encourage, promote, and support the establishment of economic zones,
industrial centers, ports in strategic areas, and growth centers to attract
local and foreign investments and business enterprises.”
The ARMM implementing law also clearly stipulates that once
the REZA is created, “the Philippine Export Zone Authority shall no longer
authorize any other economic zone within the autonomous region” and that “any
corporation, firm, or entity established within the autonomous region… be
placed under the jurisdiction of the REZA.”
However, Bacani noted that the Senate substitute bill now
stipulated that the Bangsamoro government must apply with the PEZA before it is
able to establish economic zones, industrial estates, and free ports.
Earlier, Marcos said the annual block grant as it is
proposed in the Bangsamoro Basic Law is a good one. However,he decided to
retain it so that it can be brought up for public discussion.(
http://www.pna.gov.ph/index.php?idn=1&sid=&nid=1&rid=798003
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