A ruling recently issued by the Department of Justice (DOJ) stated the national government is no longer obliged to provide additional funds to support the infrastructure and development projects in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) after the law that mandates it has already expired. 

Justice Secretary Frederrick Vida stressed that Section 23 , Article XII of Republic Act No. 11054 or the Bangsamoro Organic Law (BOL), which was enacted through a plebiscite held on 21 January 2019 has already lapsed on 21 January 2024.

Specifically, Section 23 mandates the national government to subsidize expenditures for infrastructure in the Bangsamoro region for a period of five years after the ratification of the law. 

With the absence of any legislation, Section 23 cannot be extended beyond the required period.

But Vida stressed that the  Bangsamoro government may continue to rely on existing fiscal mechanisms under the BOL, including the Block Grant and other statutory revenue sharing arrangements. 

“Further, it may seek appropriate legislative or fiscal measures, such as the enactment of a new law establishing a renewed or alternative development fund, an amendment to the BOL extending or reinstating the mechanism under Section 23, or the inclusion of specific appropriations in the General Appropriations Act pursuant to Congress’ plenary power of appropriation,” Vida suggested. 

The opinion was issued by Vida upon the request of Mohagher Iqbal, BARMM’s Minister of Basic, Higher and Technical Education and Co-chair of the Intergovernmental Relations Body.

He raised the possible application of Section 37, Article XIII (Regional Economy and Patrimony) of the BOL as an alternative mechanism to ensure the continued provision of support for infrastructure development projects within the Bangsamoro region. 

“The National Government shall fund and implement the construction and maintenance of the national roads, bridges, water supply and services, and flood control and irrigation systems and for the maintenance of the existing airports, seaports, and wharves in the Banqsamoro Autonomous Region, the provison said.”

The DOJ said Section 37 applies to the comprehensive national development programs located in the Bangsamaro region and is generally funded through the nationwide or general appropriations mechanisms.

Section 23 is a fiscal provision which creates a specific funding authority and imposes a corresponding obligation upon the national government to provide ”additional funds" for development projects and infrastructure within BARMM. 

According to the DOJ, its objectivewas to accelerate development and infrastructure spending beyond what would ordinarily be available through regular appropriations and fiscal transfers.

The DOJ saidSection 37 is fundamentally different since it is jurisdictional and administrative rather than fiscal.

It further said that it does not create a funding source nor authorize the transfer of additional resources to the BARMM mechanism.

The DOJ added, “The differences between the two provisions are not merely procedural or administrative; they are fundamental differences in nature, purpose, scope, and legal effect. These differences are so substantial that Section 37 cannot reasonably be construed as a successor, substitute, or alternative legal basis for the funding arrangement created under Section 23.”

It noted that Section 37 also seeks to ensure the continuity of national infrastructure systems and to preserve the National Government's role in their construction, operation, and maintenance.

Likewise, the DOJ pointed out that the provision was not designed to stimulate regional development through special subsidies, nor was it intended to replace temporary financial assistance once such assistance expired.”