Cotabato City — A landmark study released by the Congressional Policy and Budget Research Department (CPBRD) and the Institute for Autonomy and Governance (IAG) offers the most comprehensive assessment yet of the Bangsamoro Autonomous Region in Muslim Mindanao’s (BARMM) fiscal governance, revealing a region making measurable progress but still grappling with deep structural challenges as it moves toward its first regular parliamentary elections in 2026.

The report, funded by the Australian Government, traces how the Bangsamoro Organic Law (BOL) transformed the region’s financial landscape—from unpredictable, discretionary allocations under the defunct ARMM to a system anchored on automatic fiscal transfers, including the annual block grant equivalent to 5% of national internal revenue and customs collections.

But the study also issues a sober warning: fiscal autonomy is only as strong as the institutions that manage it.

“The true measure of BARMM’s fiscal autonomy will not be found in the size of allocations alone, but in their translation into reduced poverty, stronger human capital, expanded infrastructure, and inclusive growth,” the report emphasizes.

A Region Still Catching Up

Despite steady economic growth, BARMM remains the poorest region in the Philippines. Its per capita GRDP—₱72,453 in 2023—lags far behind the national average of ₱215,413. Poverty incidence has fallen dramatically from 60.4% in 2018 to 32.4% in 2023, but remains more than double the national rate. Food insecurity affects nearly half of all households, and child stunting stands at 34.3%, the highest in the country.

Education indicators show mixed progress: elementary cohort survival improved from 76.7% to 90.2%, but learning outcomes remain weak, with Grade 6 and Grade 10 NAT scores declining in recent years. Infrastructure gaps persist, especially in sanitation, irrigation, and internet access—only 39.6% of families use the internet, compared to the national average of 65.3%.

Block Grant: A Game-Changer, but Not a Silver Bullet

The annual block grant—BARMM’s largest and most stable revenue source—has enabled the region to craft its own General Appropriations Act of the Bangsamoro (GAAB) without annual congressional budget defense. This predictability has allowed ministries to plan long-term and align spending with regional priorities.

However, the report notes that:

• Absorptive capacity remains limited, with ministries struggling to implement programs amid rapid budget expansion.
• Procurement bottlenecks and uneven implementation slow down spending.
• Reporting systems are fragmented, and compliance with financial accountability requirements is inconsistent.
• Own-source revenues remain weak, as the Bangsamoro Revenue Code is not yet fully operational.

The first mandatory review of the block grant formula—now underway and expected to influence the 2027 national budget—is seen as a critical moment for recalibrating fiscal transfers based on actual needs, performance, and revenue generation.

Parliamentary System: Strengths and Risks

BARMM’s parliamentary setup is designed to enhance alignment between planning and budgeting. But the fusion of executive and legislative powers also poses risks.

The report flags a key concern: Members of Parliament who simultaneously serve as ministers and committee chairs may weaken budget scrutiny. Strengthening technical capacity for budget review and establishing clearer separation of roles are identified as urgent reforms.

Intergovernmental Bodies: Progress, but Coordination Gaps Remain

Seven intergovernmental mechanisms—including the Intergovernmental Fiscal Policy Board (IFPB), Intergovernmental Relations Body (IGRB), and Intergovernmental Infrastructure Development Board (IIDB)—are now fully operational. These bodies have facilitated agreements on tax data reconciliation, infrastructure coordination, energy co-management, and the integration of former combatants into national institutions.

Still, the report notes persistent issues:

• Delays in national fund releases affect BARMM’s implementation timelines.
• Infrastructure planning remains fragmented between DPWH and the Bangsamoro Ministry of Public Works.
• Data inconsistencies complicate block grant computations and tax-sharing arrangements.

Special Development Fund: Improving, but Still Under Scrutiny

The Special Development Fund (SDF)—₱50 billion over 10 years for post-conflict rehabilitation—has seen more regularized releases in recent years, thanks to new guidelines from the Ministry of Finance, Budget, and Management (MFBM). But utilization remains uneven across ministries, and concerns persist about project readiness and monitoring.

A Pivotal Moment Ahead

With BARMM’s first regular parliamentary elections approaching, the report positions itself as a guide for the next administration—one that will inherit both the gains and the unresolved challenges of the transition period.

Among its overarching recommendations:

• Strengthen the linkage between planning, budgeting, and monitoring to ensure results-oriented spending.
• Enhance internal audit systems and improve compliance with financial reporting.
• Accelerate revenue mobilization through a fully operational Bangsamoro Revenue Code.
• Deepen intergovernmental coordination, especially in infrastructure and tax administration.
• Invest in human capital and basic services, ensuring fiscal autonomy translates into real improvements in people’s lives.

The report concludes with a clear message: BARMM’s fiscal autonomy is no longer theoretical—it is real, substantial, and transformative. But its success will depend on whether institutions can keep pace with the region’s expanding responsibilities and the expectations of its people.

“The transition from ARMM to BARMM has laid solid foundations; the imperative now is consolidation—ensuring that every peso delivers measurable impact for the Bangsamoro people.”