Secretary Carlos Dominguez III has directed key officials of the Department of Finance (DOF) led by Undersecretary Gil Beltran to guide executives of the new Bangsamoro government in running their finance and budget departments as well as in crafting sound policies and implementing effective revenue-generating measures to ensure the long-term fiscal stability of this new autonomous region in Mindanao.
In a meeting last Friday, Dominguez also directed Beltran to tap the Philippine Tax Academy (PTA) to help educate the new set of government officials of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) on fiscal management, financial planning and budget-related matters.
Dominguez told Beltran to form a technical working group (TWG) together with the Department of Budget and Management (DBM); Bureaus of Customs (BOC), of Internal Revenue (BIR) and of Local Government Finance (BLGF); and the Commission on Audit (COA) in assisting the Bangsamoro government, through the Bangsamoro Transition Authority (BTA), initially run its finance and budget departments.
The DOF co-chairs with the BARMM minister of budget, finance and management the Intergovernmental Fiscal Policy Board (IGBF), which is designed to address revenue imbalances and fluctuations in the regional financial needs and revenue-raising capacity of the BARMM government.
The other IGBF members are the DBM, Department of Trade and Industry (DTI), National Economic and Development Authority (NEDA) and other BARMM appropriate ministries.
Presidential Peace Adviser Carlito Galvez Jr. said in the meeting at the DOF office in Manila that among the challenges faced by the BARMM are the ineffective budget planning and programming system that it inherited, as well as its weak accounting and reportorial capabilities and lack of oversight and internal auditing safeguards.
“I would like you to meet with them (Bangsamoro Transition Authority officials) within the month. Present them the plan,” Dominguez told Beltran and the other DOF officials at the meeting.
Also present at the meeting were Undersecretary for legal affairs Bayani Agabin, Assistant Secretary Ma. Teresa Habitan, and representatives from COA and the Asian Development Bank (ADB).
Dominguez said the ADB can be tapped to provide the technical assistance and capacity building support necessary to help the DOF and BTA in this effort.
He said the DOF can meet once every quarter with Bangsamoro officials, with the meeting held alternately in Manila and in BARMM.
During the meeting, Galvez mentioned the need to hire lawyers, accountants and technical personnel to assist BARMM government officials in transitioning to an autonomous setup.
Dominguez said the BARMM needs experienced people, such as retired government officials who are familiar with budget, revenue and customs processes.
Under the Bangsamoro Organic Law (BOL), the BARMM will receive an annual block grant that will be automatically appropriated under the General Appropriations Act (GAA).
The allocation of this yearly grant will be based on the annual appropriations law to be passed by the BARMM Parliament. Any unspent amount in the current year’s annual block grant shall revert to the Bangsamoro Treasury under a Special Fund for re-appropriation.
The BARMM can also tap a Special Development Fund to help rebuild, rehabilitate and develop its conflict-affected communities.
This Fund will be allotted P5 billion a year for a period of 10 years from the ratification of the BOL, or a total of P5o billion starting next year.
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