Gani J. Petron Office of the Regional Treasury ARMM
A. ARMM in a Nutshell:
Created in 1989 RA No 6734 as amended by RA No. 9054 Covering the Provinces of Lanao del Sur, Maguindanao, Sulu, Basilan, Tawi-tawi, and the City of Marawi (5 Provs., 1 city, 113 muns., & 2,470 brgys.) Population of 4,120,795 (2007) and a Land area of 33,599 Sq. kms.
B. Environment/Factors: Worst poverty incidence of about 49% Unstable peace and order condition rebellion, politics, family feuds, and criminalities Injustices/oppression Non-contiguous territory Tribalism Least control of and benefit from rich natural resources
C. Devolution
1. Devolved agencies:
1.Housing and Land Use Regulatory
Board (HLURB)
2.Bureau of Southern Cultural
Communities (BSCC)
3.Dept. of Agriculture & Fisheries (DAF)
4.Department of Agrarian Reform (DAF)
5.Department of Education (DepED)
6.Dept of Science & Technology (DOST)
7.Commission on Higher Ed. (CHED)
8.Technical Education Skills Development
Authority (TESDA)
9.Department of Environment and Natural
Resources (DENR)
10.Department of Health (DOH)
11.Department of Interior and Local
Government (DILG)
12. Department of Trade and Industry
(DTI)
13. Department of Tourism (DOT)
14. Regional Board of Investment (RBOI)
15. Department of Labor and
Employment (DOLE)
16. Regional Tripartite Wage Board
(RTWB)
17. Department of Public Works and
Highways (DPWH)
18. Department of Social Welfare and
Development (DSWD)
19. Cooperative Development Authority
(CDA)
20. Department of Transportation and
Communication (DOTC)
2. Regionally created agencies: 1. Office of the Regional Governor (ORG) 2. Office of the Regional Treasurer (ORT) 3. Regional Commission of Bangsamoro Women (RCBW) CDO/BYA 4. Regional Planning and Development Office (RPDO) 5. Regional Ports and Management Authority (RPMA) 6. ARMM Development Academy (ADA) 7. Bureau of Cultural Heritage 8. Southern Philippines Development Authority ARMM (SPDA-ARMM)
3. National agencies 0perating through respective regional offices in ARMM: 1. Philippine National Police (PNP) 2. National Police Commission (NAPOLCOM) 3. Philippine Coconut Authority (PCA) 4. National Statistics Office (NSO) 5. National Authority (NFA) 6. Commission on Audit (COA) 7. Civil Service Commission (CSC) Bureau of Agricultural Statistics (BAS) 8. Commission on Human Rights (CHR)
4. National agencies with no established regional offices within
ARMM:
1. Government Service Insurance System (GSIS)
2. Social Security System (SSS),
3. National Anti Poverty Commission,
4. National Commission for the Urban Poor,
5. National Electrification Authority
6. National Food Authority
7. National Irrigation Authority,
8. National Commission of Indigenous People
9. PAG-IBIG Fund,
10. National Housing Authority,
11. Commission of Elections,
12. Department of Budget and Management,
13. Philippine Overseas and
Employment Authority,
14. Philippine Sports Commission
15. Philippine Tourism Authority
16. Department of Foreign Affairs,
17. National Economic
Development Authority
18. Central Bank and
19. National Economic and
Development Authority
D. PAPs Gap in ARMM
With National Programs (11)
DepEd, DOH, DSWD, DPWH, DAR, DA,
DENR, DILG, BFAR, CHED, DOST, TESDA
No National Programs (7)
DOLE, DOT, DTI, DOTC, CHED, CDA,
HLURB,
No Agency in ARMM (11)
LWUA, DBM, PPA, DOF, POPCOM, NEA,
NIA, NHA, NCIP, CHR, DOE
With Field Office in ARMM (7)
NAPOLCOM, PNP, NBI, CSC, COA, PCA, NSO
National Agency PAPs
PAPs implemented in ARMM
No PAPs in ARMM
23 PAPs 5 PAPs 18 PAPs
Delayed Fund Releases/ Thru RO
IX, X, XII
Fully funded in the GAA
No fund Allocation
PAPs Gap in ARMM
E. Basis of ARMM Fiscal Autonomy:
1. The Philippine Constitution provides that the Autonomous Region in Muslim Mindanao shall have the power to create sources of revenues (Par. 2, Sec. 20, Art X).
2. Fiscal Autonomy - Fiscal autonomy refers to the powers of the autonomous regional government of the Autonomous Region in Muslim Mindanao (ARMM) to create sources of revenues and budget the same for development programs, projects, and services. This fiscal autonomy is contemplated under Article IX of Republic Act No. 9045 (ARMM Organic Act) more particularly Sections 1 and 2 of Art. IX.
The fiscal power of the ARMM would sound meaningful
but is restricted under Section 3, Article IV (Powers of
Government) and Section 7, Article IX (Fiscal Autonomy)
of the Organic Act.
In reality, the 25 years or more exercise of the ARMM of
the said power proved that it is far from adequate. In fact,
the regional government is able only to generate less than
5% of its total yearly budget requirement. This means that
the region is 95% dependent to the subsidy of the national
government to keep it operating and deliver minimal basic
services.
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F. Main Sources of Incomes/ Revenues
1. Budget/Subsidies - shares from the national coffers, & funding assistance from GOP & donors
YEAR ARMM Year Budget
1991 792,812,000.00
1992 981,955,000.00
1993 1,933,613,000.00
1994 2,089,772,000.00
1995 2,484,772,000.00
1996 2,180,275,000.00
1997 2,507,870,000.00
1998 4,940,539,000.00
1999 4,370,334,000.00
2000 4,326,421,000.00
2001 4,980,574,000.00
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2002 5,073,285,000.00
2003 5,285,972,000.00
2004 5,124,665,000.00
2005 7,377,972,000.00
2006 7,224,806,000.00
2007 9,072,065,000.00
2008 8,614,259,000.00
2009 9,994,824,000.00
2010 9,848,637,000.00
2011 12,943,728,796.00
2012 12,468,623,443.00
2013 17,379,428,000.00
2014 20,525,939,000.00
2015 25,229,264,000.00
2. ARMM Tax /Revenue Share, Natural Resource Taxes -70-30% (Local Fund)
YEAR LOCAL FUND
1991 -
1992 -
1993 -
1994 97,335,025.34
1995 88,945,779.72
1996 129,555,949.00
1997 194,487,404.92
1998 191,694,997.33
1999 169,904,558.42
2000 136,071,229.77
2001 201,579,892.08
Natural resources taxes and incomes - 50-50% on strategic minerals revenues and taxes (Art XII, RA 9054)
2002 188,476,533.54
2003 387,531,770.08
2004 479,024,291.83
2005 738,854,978.23
2006 695,082,903.17
2007 615,719,947.45
2008 703,146,090.49
2009 669,894,085.83
2010 764,746,374.05
2011 737,679,122.90
2012 686,572,320.91
2013 1,254,012,881.32
2014 1,447,745,430.10
2015 (Jan-June) 977,487,116.35
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G. Other Sources of Revenues (Still to be fully tapped): 1. Incomes/revenues may include profit shares from businesses(GOCCs) and land rents from EI regimes 2. Loan proceeds - local & foreign loans including bond floating 3. Regioanl taxes (ARMM Revenue Code, Fishery Code) 4. May engage in income generating business/projects
5. May contract loans and issue treasury bills/ notes/papers 6. May forge economic agreements to generate block grants, donations,
endowments, & foreign asssistance
H. Issues: 1. Taxing powers and resources under DOF/other income
generating agencies are not devolved to ARMM 2. Non-devolution key program and projects on education,
health, agriculture, public works others 3. Collections & remittance of taxes remain in the
bureaucratic national agencies covered by numerous laws and regulations/systems (regulatory matters)
:
4. ARMM subsidies are yearly appropriated per agency by
Congress and released periodically by DBM 5. Circuitous ARMM share processes per JC-2004-1 (RDO RR RAD (BIR national) DBM (appropriated by congress) ARMM Agencies & LGUs) 6. ARMM loans & bond issuance subject to rigid national
requirements (DOF and BSP)
7. ARMM budget mainly covers personnel services & MOOE
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8. ARMM-ARG has no line authority over LGU treasurers. Only about 2 to 3% of local fund is regionally generated (MMA no. 49 mainly add-on taxes)
9. ARMM has been deprived of its tax share from large
taxpayers due to remittance system
10. Absence of Islamic Finance Institutions/products and services
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I. Some Alternatives: 1. Transfer of powers/functions, and resources with
adequate transition assistance and mechanisms 1.1 DOF BIR, BTr, & BLGF (some of needed powers/functions)
Formulate long range, medium-term and annual plans covering the governments resource mobilization efforts
Supervise, direct and control the collection of government revenues Act as custodian and manage all financial resources of the regional
Government
Formulate, institutionalize and administer fiscal and tax policies
1.2 DOTC (some of the needed powers/funcions): Integrated/comprehensive transportations and
communications policies, plans, programs, and systems
Administer and enforce laws, rules/regulations on
transportations and communications Transportations and Communications research
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1.3 DBM-MSO: Compensation and position classification power
2. Adoption of fair and practicable formula and system in
determining and releasing the just and equitable share in the national coffers
3. Lumpsum appropriation and release of the yearly
budget
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4. Simplified remittance systems by retention of revenues and tax shares
5. National government guarantee of loans and bond
issuance
6. Deal with GOCCs in terms of representation, relationship, access to programs and services, and benefits
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End of Presentation Shukran!!!