IAG will release a policy report based on the proceedings of the roundtable series. Email Ram Toledo, our communications staff, to request a copy: This email address is being protected from spambots. You need JavaScript enabled to view it.. 

Major takeaways from this roundtable:

1. There is no real fiscal autonomy in the ARMM at present

■Why? Because only 5% or so is locally generated of the total budgetary requirements of the ARMM from an area that is berift of investments and economic activity, high poverty incidence and beset with governance problems which greatly affect tax collections in that region.

■There are structural and functional flaws in tax collection system in the ARMM resulting from the provisions of the laws (both national and the ARMM law) that exacerbate the problem on low internally generated revenue.

■Allocation of subsidy from national government to the various regional line agencies in the ARMM is determined by Congress.  Take note that not all national agencies have regional offices in the ARMM. According to Dr. Herwig Mayer, one of the ingredients of fiscal autonomy is having the command over the allocation of financial resources, meaning nobody will tell them where to spend and what to spend on what.

■To be self-sufficient, the ARMM needs at least 20% increase in its annual revenues over the next 20 years or more.

2. The PhP75 billion block grant is a fairy tale.

■Why? Because the block grant is estimated to be about 2.4% of the net internal revenue collections of the past three years or 4% of 60% of the net internal revenue collections of the past three years. (The net internal revenue collections is divided as follows: 40% goes to the LGUs while the 60% goes to the national government.) So it is about PhP27 billion if you take the net internal revenue collections in the past three years.

■The incremental funding because of the BBL is only PhP3 billion a year.

■The block grant is a replacement of the present and not in addition to the present subsidy given to ARMM.

■A unique provision in the BBL that will show intent for self-sufficiency and hopefully will not have a disincentive effect to collect higher revenues in the Bangsamoro is that, any revenue from additional taxes or revenue shares from wealth sharing will be deducted from the block grant.

3. Each Filipino living outside the ARMM will just contribute PhP26.00 as peace dividend to the BBL. According to Dr. Mayer, the right way on how to determine how much money you should get is to first negotiate what you want to do and then the money will follow, not the other way around.

4. Finally, trust is important if we want to establish peace and order situation in Muslim Mindanao and is essential in the successful passage of the BBL.