Bangsamoro General Appropriations Act: How the BARMM Budget Process Works

The Bangsamoro General Appropriations Act is the law that authorizes the Bangsamoro Government to spend public funds for one fiscal year. It is enacted by the Bangsamoro Parliament and, during the transition period, by the Bangsamoro Transition Authority (BTA). The Act states the total amount appropriated, identifies which ministries and offices receive funds, and sets the conditions for releasing and reporting those funds. For the 2022 fiscal year, the General Appropriations Act of the Bangsamoro appropriated ₱79,862,015,000.00 for the operation of the Bangsamoro Government from January 1 to December 31, 2022.

What the General Appropriations Act Does

The Act performs three functions. First, it authorizes spending. Section 1 of the FY 2022 General Appropriations Act provides that the appropriated amount is drawn from the annual block grant and other subsidies from the National Government, the Bangsamoro share in national taxes, fees and charges collected within the Bangsamoro territorial jurisdiction, unused or unutilized appropriations from the Bangsamoro Treasury, and projected collections on regional taxes, fees and charges.

Second, it allocates funds by ministry or office. The FY 2022 Act lists the Bangsamoro Transition Authority, the Office of the Chief Minister, the Ministry of Finance, and Budget and Management, and the other ministries, each with its own appropriation. The Office of the Chief Minister, for instance, was appropriated ₱8,082,220,607.92.

Third, it classifies spending into Personnel Services, Maintenance and Other Operating Expenses, and Capital Outlays. This classification shows how much goes to salaries and benefits, how much to day-to-day operations, and how much to assets such as buildings, equipment, and infrastructure.

Who Prepares and Enacts the Bangsamoro Budget

The Ministry of Finance, and Budget and Management (MFBM) is the ministry responsible for fiscal management. Its mandate is to evolve sound, efficient, and responsive fiscal management and utilization of resources, and to formulate and administer fiscal policies in coordination with other ministries and agencies of the Bangsamoro Government. Under its Budget Operations Program, the MFBM conducts budget preparation, execution, and review activities, formulates policies and standards on the Bangsamoro budget process, and publishes essential budget documents.

The Bangsamoro Parliament then enacts the appropriation. During the transition period, this is done by the BTA in Parliament assembled. The resulting law is a Bangsamoro Autonomy Act, as with the FY 2022 General Appropriations Act of the Bangsamoro.

How Funds Are Released and Used

An appropriation does not release money automatically. The Act attaches conditions to certain funds. Under the FY 2022 Act, the Bangsamoro Parliament Program for Community and Cultural Acceleration — ₱387,840,000.00 — is released monthly by the MFBM to the BTA Parliament, and use of the funds requires a written request from a Member of the Parliament to the Finance Services of the BTA Parliament specifying the purpose and amount.

The Parliament Learning Program, ₱20,000,000.00, is released upon request of a Member of the Parliament submitted to the Office of the Speaker, with the MFBM releasing the funds in January and July 2022.

The Quick Response Fund, ₱1,098,000,000.00, is a stand-by fund for communities affected by calamities, epidemics, crises, and catastrophes. Its release follows set guidelines: a joint assessment by the Office of the Chief Minister and the appropriate ministries, submission of the assessment report and recommendation to the Chief Minister, and a declaration of a state of calamity directing the MFBM to release the appropriate funds. The Act expressly prohibits using the Quick Response Fund for pre-disaster activities such as training, insurance of assets, and public information initiatives.

Other funds carry similar conditions. The ₱64,000,000.00 for land acquisition under Kapayapaan sa Pamayanan (KAPYANAN) is released only after land areas have been identified. The ₱56,400,000.00 for Support to Non-IRA Barangays requires submission of a validated list of beneficiary barangays.

Reporting and Accountability Requirements

The Act requires implementing ministries and offices to submit quarterly reports on financial and physical accomplishments within thirty (30) days after the end of every quarter. Reports are submitted through the Unified Reporting System or other electronic means, in hardcopy to the MFBM, and posted on the implementing ministry's or office's website. A written notice is sent once the reports have been submitted or posted, and the date of that notice is considered the date of compliance.

The Office of the Chief Minister must also issue a Program Implementation Plan and Guidelines and submit quarterly status reports to the MFBM on programs such as AMBaG, TABANG, KAPYANAN, Support to Local Moral Governance, and the Marawi Rehabilitation Program.

Frequently asked questions

What is the Bangsamoro General Appropriations Act? It is the annual law enacted by the Bangsamoro Parliament that authorizes the Bangsamoro Government to spend a set amount of public funds for one fiscal year and allocates that amount among ministries and offices.

How much was the Bangsamoro budget for 2022? The FY 2022 General Appropriations Act of the Bangsamoro appropriated ₱79,862,015,000.00 for the operation of the Bangsamoro Government from January 1 to December 31, 2022.

Where does the Bangsamoro budget come from? Section 1 of the FY 2022 Act lists the annual block grant and other subsidies from the National Government, the Bangsamoro share in national taxes, fees and charges collected within its territorial jurisdiction, unused or unutilized appropriations from the Bangsamoro Treasury, and projected collections on regional taxes, fees and charges.

Practical takeaways

• The Bangsamoro General Appropriations Act is enacted yearly and authorizes spending for a single fiscal year.
• The MFBM prepares and administers the budget; the Bangsamoro Parliament enacts it.
• Funds are classified as Personnel Services, Maintenance and Other Operating Expenses, and Capital Outlays.
• Many appropriations are released only upon compliance with conditions stated in the Act, such as written requests or validated lists.
• Implementing offices must file quarterly financial and physical accomplishment reports within thirty days after each quarter.

Primary sources

The rules discussed above are drawn from the following issuances, embedded here in full for your reference.

BA-ACT NO. 23 (FY 2022 General Appropriations Act of the Bangsamoro)Open in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.