National, BARMM Governments to Review Block Grant Share from Tax Revenues

The national and Bangsamoro governments have jointly agreed to review the formula for calculating the Annual Block Grant (ABG) allocated to the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), the Department of Finance (DOF) announced.

This review, led by the Intergovernmental Fiscal Policy Board (IFPB) co-chaired by Finance Secretary Ralph Recto and BARMM Finance Minister Ubaida Pacasem, aims to enhance fiscal autonomy and accountability in the region.

Mandated under Section 22, Article XII of the Bangsamoro Organic Law (RA 11054), the ABG formula must be reviewed every five years. The grant is based on 5% of the net national internal revenue and customs collections from three years prior to the current fiscal year.

In 2024, BARMM received ₱70.51 billion through the ABG, bringing the total since 2020 to ₱337.53 billion.

The review will consider BARMM’s fiscal needs and actual revenue generation, with a goal of ensuring the block grant remains transparent and performance-driven. Consultations will include ASEAN partners and development experts familiar with fiscal transfer systems.

The IFPB targets to finalize the review by early 2026 to incorporate updated figures in the 2027 national budget.