The Intergovernmental Fiscal Policy Board (IFPB) has resolved to commence the review of the Annual Block Grant (Block Grant) formula for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to promote greater fiscal autonomy and development in the region.

The IFPB is co-chaired by Finance Secretary Ralph G. Recto for the National Government and Minister of Finance, Budget and Management Ubaida Pacasem for the Bangsamoro Government.

The review is in accordance with Section 22, Article XII of Republic Act No. 11054 or the Bangsamoro Organic Law (BOL) which requires the review of the Block Grant formula every 5 years.

“I am optimistic that this review will result in a more responsive and effective Block Grant formula that will further strengthen the BARMM towards a just and lasting peace as well as inclusive development in the Bangsamoro region,” Secretary Recto said.

The amount of the Block Grant is equivalent to 5% of the net national internal revenue tax collection and the net collection of the BOC from the third fiscal year immediately preceding the current fiscal year.

The Block Grant received by the Bangsamoro Government in 2024 was PHP 70.51 billion from the National Government. The total Block Grant received by the Bangsamoro Government is PHP 337.53 billion from 2020 to 2024.

The IFPB is tasked to review the ABG formula five years after its effectivity, and every five years thereafter, to consider, among others, the fiscal needs of the Bangsamoro Government and the actual revenue it shall be able to generate to ensure that all block grant expenditures are transparent and performance-based.

To ensure a fair and well-informed review process, consultations will be held with development partners and ASEAN countries with valuable knowledge and expertise in the administration, management, and implementation of block grants or similar fiscal transfer mechanisms.

The IFPB aims to conclude the review by the first quarter of 2026 to ensure that the ABG amount, based on the agreed computation, will be included in the preparation for the 2027 National Budget.

Minister Ubaida Pacasem welcomed the joint review and expressed his appreciation for the National Government’s proactive approach.