The Intergovernmental Fiscal Policy Board (IFPB), created under the Bangsamoro Organic Law (BOL) to deal with revenue imbalances and fluctuations in the regional financial needs and revenue-raising capacity of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), has approved the guidelines on the acceptance of foreign grants and donations by the Bangsamoro government.

Finance Undersecretary Bayani Agabin said the guidelines issued by the IFPB are similar to the protocols provided under the law that other government agencies have to follow when receiving grants or donations.

“The IFPB’s goal in issuing the guidelines was to streamline the process for the Bangsamoro government in receiving grants and make it more efficient,” Agabin said.

Co-chaired by Finance Secretary Carlos Dominguez III and BARMM Chief Minister Ahod Ebrahim, the Intergovernmental Fiscal Policy Board (IFPB) between the national and Bangsamoro governments approved the set of guidelines during its second meeting held on Feb. 5 last week.

The IFPB held its inaugural meeting on May 29 last year.

During the Feb. 5 meeting, Secretary Dominguez and BARMM Public Works Minister Eduard Guerra, who was Minister Ebrahim’s representative, agreed that the Department of Finance (DOF) should be informed by the Bangsamoro government when initiating talks with potential foreign donors, so that the processing of grants can be done simultaneously with the national government.

Under IFPB’s approved guidelines, the Bangsamoro Government shall coordinate closely with the DOF prior to the negotiation and signing of foreign grants “to facilitate issuances of request for Office of the President (OP) Approval or Special Authority.”

Under the BOL (Republic Act No. 11054), the BARMM shall enjoy fiscal autonomy, and have the power to create its sources of revenues as provided under this law.

The BOL also provides that the Bangsamoro government shall exercise authority over grants and loans, without prejudice to the general supervision of the President of the Philippines, and that its acceptance of foreign grants shall be subject to the prior clearance and approval by the President or his authorized representative.

The guidelines on foreign grants to the BARMM shall take effect 15 days following the filing of its three copies with the Office of the National Administrative Register (ONAR) of the University of the Philippines (UP) Law Center.

During the Feb. 5 meeting, the IFPB also discussed the ongoing work being done by the BARMM Tax Study Group (TSG) and the establishment of the Shari’ah Supervisory Board in the BARMM, along with the creation of a regional office of the DOF-attached Bureau of Local Government Finance (BLGF) in the autonomous region.

Secretary Dominguez advised Minister Guerra to start with digitalizing the tax processes of the BARMM to ensure efficient revenue-generating operations and funding for its priority projects.

“If there’s any more help you need from us on taxation, please let us know because this is so important. Without good taxation and a good collection agency, you cannot get anything done. Nice engine, but no gasoline,” Secretary Dominguez told Minister Guerra.

Secretary Dominguez also instructed Finance Assistant Secretary Dakila Napao to track the timeline of the studies being done by the TSG and to align this task with the timeline of the parliamentary approval of the BARMM Revenue Code.

BARMM Deputy Minister Ubaida Pacasem, who is also the Minister of Finance and Budget and Management, informed the IFPB that the Bangsamoro government expects the proposed Revenue Code to be presented to its Cabinet in May and to the Parliament by this year’s third quarter.

Representatives from the Bangsamoro government and the Bangko Sentral ng Pilipinas (BSP) held their first meeting last Jan. 26 to discuss the framework for the Shari’ah Supervisory Board.

The BOL provides for the establishment of the Shari’ah Supervisory Board and the promotion and development of Shari’ah compliant financial institutions in the BARMM.

As for the establishment of the BLGF regional office in the BARMM, the creation of 18 staff positions for this office was already approved by the Department of Budget and Management (DBM), according to Agabin.

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