The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is expected to receive an additional PHP838 million from taxes, fees and charges collected within its territory in 2027, strengthening the regional government’s revenue resources.

During Thursday’s Senate Committee on Finance hearing, Department of Budget and Management (DBM) Acting Secretary Kim Robert de Leon said the region’s projected share would increase by 15 percent, from PHP5.59 billion this year to PHP6.43 billion next year.

“The subject share for 2027 is based on the estimated collection by the BIR,” De Leon said, referring to the Bureau of Internal Revenue’s collection targets and certifications issued by its regional and district offices.

Unlike direct subsidies, the revenue shares represent a portion of national taxes, fees and charges collected within the autonomous region and transferred to the Bangsamoro government under Republic Act 11054, or the Bangsamoro Organic Law.

The law entitles the regional government to 75 percent of these collections, inclusive of the shares of its constituent local government units, while the national government’s 25-percent share also accrues to the Bangsamoro government during the first 10 years of the law’s implementation.

The arrangement is intended to strengthen fiscal autonomy by allowing the region to benefit directly from economic activities and revenue collections within its jurisdiction.

The Bangsamoro Ministry of Finance, and Budget and Management earlier issued guidelines governing the release and utilization of tax shares by constituent local governments, providing a mechanism for distributing the funds beyond the regional administration.

The higher tax allocation forms part of the PHP115.62-billion national funding package proposed for BARMM in 2027, an increase of PHP11.05 billion from this year’s PHP104.57 billion.

Of the proposed amount, PHP104.19 billion represents the annual block grant, while PHP5 billion is allocated to the Special Development Fund (SDF), separate from the PHP6.43-billion revenue share.

The block grant finances the regional government’s regular functions and services, while the SDF supports rehabilitation and development in communities affected by decades of armed conflict.

Under the Bangsamoro Organic Law, the national government is required to provide PHP50 billion for the SDF over 10 years, or PHP5 billion annually, to support reconstruction, livelihood opportunities and long-term development in conflict-affected communities. (PNA)