Bangsamoro’s tax revenue share set to increase by P838 million in 2027 budget

MANILA, Philippines – The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is set to receive an additional Php 838 million in tax revenue shares under the proposed 2027 national budget, boosting the region’s financial resources.

During the Senate Committee on Finance hearing Thursday, October 22, Department of Budget and Management (DBM) Acting Secretary Kim Robert de Leon said BARMM’s projected share from taxes, fees, and charges collected within the region would increase by 15 percent.

The allocation is expected to rise from Php 5.59 billion in 2026 to Php 6.43 billion in 2027.

“The subject share for 2027 is based on the estimated collection by the BIR,” De Leon said, referring to revenue projections and certifications from the Bureau of Internal Revenue’s regional and district offices.

Under Republic Act 11054, or the Bangsamoro Organic Law, the regional government is entitled to 75 percent of national taxes, fees, and charges collected within its territory, including the shares of its constituent local government units.

The law also provides that the national government’s remaining 25-percent share will accrue to the Bangsamoro government during the first 10 years of the law’s implementation.

The arrangement aims to strengthen BARMM’s fiscal autonomy by allowing the region to benefit directly from economic activities and revenue collections within its jurisdiction.

The Bangsamoro Ministry of Finance, and Budget and Management has also established guidelines for distributing and utilizing tax revenue shares among local government units.

Meanwhile, the proposed national funding package for BARMM in 2027 amounts to Php 115.62 billion, an increase of Php 11.05 billion from the Php 104.57 billion allocated this year.

Of the proposed amount, Php 104.19 billion will go to the annual block grant, while Php 5 billion is earmarked for the Special Development Fund (SDF), separate from the Php 6.43-billion tax revenue share.

The annual block grant supports the regional government’s regular operations and public services, while the SDF finances rehabilitation and development programs in communities affected by decades of armed conflict.

Under the Bangsamoro Organic Law, the national government must provide Php 50 billion for the SDF over 10 years, equivalent to Php 5 billion annually.

The funding is intended to support reconstruction, livelihood programs, and long-term economic development in conflict-affected communities across the Bangsamoro region.

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