Fiscal and economic experts discuss views on BBL

The House committees on local government and Muslim affairs as well as special committee on peace, reconciliation and unity on Wednesday consulted finance and economic experts about the fiscal autonomy aspect of the proposed Bangsamoro Basic Law (BBL).

During the joint hearing of the three panels, officials of the Department of Finance DOF), Department of Budget and Management (DBM), Bangko Sentral ng Pilipinas (BSP) and National Economic and Development Authority (NEDA) gave their positions on the BBL’s fiscal autonomy aspect.

Finance Secretary Carlos Dominguez said the BBL would allow for  more substantial autonomous arrangements, a major step towards promoting harmonious co-development in Mindanao.

 Dominguez commented on a number of BBL sections, emphasizing two main points covering the funding of the proposed transitional government. First, any proposed funding scheme should be programmatic, transparent, and performance-based, he said.

For instance, he said, the BBL should put in place mechanisms to ensure that block tranches given to the autonomous region are handed over subject to performance audit. “The implementation of plans and programs must be clear and reliable to ensure effective and efficient utilization of funds,” he said. 

Second, the fundamental requirements for sustained growth such as hard infrastructure, new communications technology, and efficient administration system must apply to the Bangsamoro region as they do to the rest of the Republic.

Fiscal provisions in BBL, for instance, allow the Bangsamoro government to issue bonds along with other revenue generating measures, according to him. “We are afraid these would not succeed unless the autonomous region first achieves fiscal discipline and demonstrates it,” said Dominguez.

“We need to bring economic activities in the autonomous region emerging from this law to a higher level. We all know that the autonomous region in Muslim Mindanao has the lowest growth national income among the country’s regions. I am not saying that the Bangsamoro is not ready at the moment, but it is better to proceed with caution rather than to stumble along the way and cause more problems in the future,” said Dominguez.

Department of Budget and Management Undersecretary Tina Rosemarie Canda said the BBL substance centers on four points: creation of offices which should conform to the national government’s guidelines; clarifications on the block grants; termination of employees as a result of the BBL; and sharing of the resources that would be given as the result of the six percent provision for block grants.

National Economic Development Authority (NEDA) Undersecretary Aurora Navarro said the NEDA is supporting the passage of BBL and they are one with the Bangsamoro in promoting socio-economic development in the region.

 Bangko Sentral ng Pilipinas Atty. Noel Tianala also expressed full support for the passage of the BBL. The BSP believes that this will bring lasting and permanent peace in Mindanao which could provide greater socio-economic benefit not only in the region but for the whole country.

Rep. Celso Lobregat requested the concerned agencies to submit to the committees the facts and per capita figures in the last 10 years relative to funding support for all regions in the country. 

Rep. Mohamad Khalid Dimaporo said it is not the amount but the output in delivering services to the people that matters for better standard of living.

As a former governor of Lanao del Norte, Dimaporo said he was shocked to learn that the devolution was not intended for the local government units (LGUs) but for the ARMM.

He said there have been many complaints about governors and mayors not supporting health programs in the ARMM because they did not own the hospitals. “The hospitals are owned by the regional government. These are things that need to be corrected in the proposed law,” said Dimaporo. (EAG)

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