Loans
Section 22. Foreign and Domestic Loans; Bills, Bonds, Notes and Obligations. – (a) Loans, Credits, and Other Forms of Indebtedness.- The contracting of loans, credits, and other forms of indebtedness by the Bangsamoro Government shall be for the development and welfare of the people of the Bangsamoro.
Subject to acceptable credit worthiness, such loans may be secured from domestic and foreign lending institutions, except foreign and domestic loans requiring sovereign guaranty, whether explicit or implicit, which would require the approval of the Central Government. The Bangsamoro Parliament may authorize the Chief Minister to contract such domestic or foreign loans. The loans so contracted may take effect upon approval by a majority of all the members of the Bangsamoro Parliament.
The Central Government shall assist the Bangsamoro Government in complying with the requirements for a speedy issuance of the sovereign guaranty, to finance local infrastructure and other socio-economic development projects in accordance with the Bangsamoro Development Plan.
Within 30 days from the submission of the Bangsamoro Government of its application for sovereign guaranty, the Bangsamoro Government shall be informed by the Central Government on the actions taken on the application. The application shall be resolved with dispatch.
(b) Bills, Bonds, Notes, Debentures and Obligations. – The Bangsamoro Government is also authorized to issue treasury bills, bonds, debentures, securities, collaterals, notes, obligations, and other debt papers or documents, as well as redeem or retire the same. Pursuant to law enacted by the Bangsamoro Parliament. Said authority may be exercised in order to finance self-liquidating, income producing development or livelihood projects pursuant to the priorities established in the aforementioned development plan.
(c) Payment of Loans and Indebtedness. – The Bangsamoro Government shall appropriate in its annual budget such amounts as are sufficient to pay their loans and their indebtedness incurred.
Section 23. Overseas Development Assistance. – In its efforts to achieve inclusive growth and poverty reduction, through the implementation of priority development projects, the Bangsamoro Government may avail directly of Overseas Development Assistance (ODA). The Bangsamoro Parliament may enact legislation governing ODA.
Grants and Donations
Section 24. Grants and Donations. – Grants and donations from foreign and domestic donors received by the Bangsamoro Government for the development and welfare of the people in the Bangsamoro shall be used solely for the purpose for which they were received.
Donations and grants that are used exclusively to finance projects for education, health, youth and culture, and economic development, may be deducted in full from the taxable income of the donor or grantor. jlp-law.com
Economic Agreements and Conventions
Section 25. Economic Agreements. – The Bangsamoro government may enter into economic agreements and receive benefits and grants derived therefrom subject to the reserved powers of the Central Government over foreign affairs.
Section 26. Cultural Exchange, Economic and Technical Cooperation. – Consistent with the reserved powers of the Central Government, the Bangsamoro Government may establish linkages for cultural exchange, economic and technical cooperation with countries with diplomatic relations with the Philippines, with assistance of Philippine embassies or consulates, or through some other arrangements with Central Government supporting such undertakings.
Section 27. Benefits from Conventions. – The Bangsamoro shall be entitled to benefits resulting from conventions to which the Central Government is a party. Such benefits shall be equitable and shall consider the available human and material resources and comparative advantage of the Bangsamoro, as well as its socio-economic conditions and needs.
Government Owned and/or Controlled Corporations (GOCCs)
And Financial Institutions
Section 28. GOCCs and Financial Institutions. – The Bangsamoro shall have the power to create GOCCs and financial institutions through the necessary modalities, and in accordance with a law on GOCCs to be passed by the Parliament. The Bangsamoro Government-created GOCCs shall be duly registered with the Securities and Exchange Commission or established under legislative charter by the Bangsamoro Parliament, and shall be recognized even outside the Bangsamoro. Revenues derived from their operations shall pertain to the Bangsamoro.
Section 29. Existing GOCCs Operating Exclusively in the Bangsamoro. – The Bangsamoro Government shall have the authority and control over existing GOCCs and financial institutions operating exclusively in the Bangsamoro, after determination by the intergovernmental fiscal policy board of its feasibility. Such transfer shall be effected through the necessary changes on the GOCCs’ governing boards.
Section 30. Southern Philippine Development Authority and Al-Amanah Islamic Investment Bank. – Within six (6) months from the establishment of the BTA, the Intergovernmental Fiscal Policy Board shall determine the participation of the Bangsamoro in the ownership and management of Al-Amanah Islamic Investment Bank of the Philippines and the Southern Philippines Development Authority as provided in P.D. 690 as amended by P.D. 1703 and the mode of transfer of ownership to the Bangsamoro Government.
Section 31. Existing GOCCs in the Bangsamoro. – The Bangsamoro Government shall be represented in the board of directors or in the policy making bodies of GOCCs that operate a substantial portion of their businesses directly or through their subsidiaries in the Bangsamoro or where the Bangsamoro has substantial interest. The Intergovernmental Fiscal Policy Board (IGFPB) shall determine the extent of participation. In no case shall the Bangsamoro have less than one seat in the governing board of such entities.
The share of the Bangsamoro Government from the results of operations of GOCCs and subsidiaries operating in the Bangsamoro shall be bases on a formula determined by the Intergovernmental Fiscal Policy Board under Section 36 of this Basic Law.
Sharing in the Exploration, Development and Utilization of Natural Resources
Section 32. Sharing in the Exploration, Development and Utilization of Natural Resource. – Central Government income from taxes derived from the exploration, development and utilization of all natural resources within the Bangsamoro shall be allocated as follows:
a. For non-metallic minerals (sand, gravel, and quarry resources), such revenues shall pertain fully to the Bangsamoro and its local government units;
b. For metallic minerals, seventy-five percent (75%) shall pertain to the Bangsamoro;
c. For fossil fuels (petroleum, natural gas, and coal) and uranium, the same shall be shared equally between the Central and Bangsamoro Governments.
Such sharing scheme shall be applicable to the natural resources found in the land mass that comprise the Bangsamoro territory as well as the waters that are within the territorial jurisdiction of the Bangsamoro.
Section 33. Share of the Constituent Local Government Units. – The share of the Bangsamoro Government in the revenues referred to in the immediately preceding section shall include those for its constituent local government units. The Bangsamoro Parliament shall enact a law detailing the shares of such local government units.
Section 34. Share of Indigenous Communities. – Indigenous peoples shall have an equitable share from the revenues generated from the exploration, development and utilization of natural resources that are found within the territories covered by a native tile in their favor. The share shall be provided for in a law to be passed by the Bangsamoro Parliament.
The Bangsamoro Parliament shall enact a law that shall provide in detail said sharing system, including the percentage of the shares of the indigenous peoples and communities, and the mechanisms therefor.
Intergovernmental Fiscal Policy Board
Section 35. Intergovernmental Fiscal Policy Board. – There is hereby created an Intergovernmental Fiscal Policy Board (IGFBP) that shall address revenue imbalances and fluctuations in regional financial needs and revenue-raising capacity of the Bangsamoro.
Section 36. Functions. – The IGFBP shall undertake the following functions:
(a) Recommend the necessary fiscal policy adjustments by undertaking a periodic review of the taxing powers, tax base and rates of the Bangsamoro Government, wealth sharing arrangements, sources of revenues vis-Ã -vis the development needs of the Bangsamoro;
(b) Address disputes between the Central Government and the Bangsamoro Government involving the collection of capital gains tax, documentary stamp tax, donor’s tax and estate tax in the Bangsamoro;
(c) Determine the extent of participation of the Bangsamoro Government in the board of directors or the policy-making bodies of GOCCs that operate a substantial portion of their businesses directly or through their subsidiaries in the Bangsamoro or where the Bangsamoro has substantial interest;
(d) Determine the participation of the Bangsamoro Government in the results of operations of government-owned and/or controlled corporations and its subsidiaries operating in the Bangsamoro. The Board shall also determine a formula for the share of the Bangsamoro Government from the results of said operations;
(e) Determine the participation of the Bangsamoro in the ownership and management of Al-Amanah Islamic Investment Bank of the Philippines and the Southern Philippines Development Authority (SPDA) to the Bangsamoro; and
(f) Recommend the exercise by the Bangsamoro Government of additional fiscal powers in order to attain the highest form of fiscal autonomy.
Section 37. Composition. – The Board shall be composed of the heads and/or representatives of the appropriate ministries and offices in the Bangsamoro Government. The Central Government shall likewise be represented in the Board by the Secretary of Finance and such other officials as may be necessary.
Once full fiscal autonomy has been achieved by the Bangsamoro, it may no longer be necessary to have a representative from the Central Government to sit in the Board.
Section 38. Meetings and Annual Report. The Board shall meet at least once in six (6) months and shall adopt its own rules of procedure for the conduct of its meetings.
An annual report shall be submitted by the Board to the Central Government and the Bangsamoro Government.
Section 39. Full Disclosure Policy. – The Bangsamoro Government hereby adopts a policy of full disclosure of its budget and finances, and bids and public offerings and shall provide protocols for the guidance of local authorities in the implementation of said policy, which shall include, among others the posting of the Summary of Income and Expenditures. The same policy shall apply to its constituent local government units, as may be provided in a law to be enacted by the Bangsamoro Parliament.
Section 40. Additional Fiscal Powers. – The IGFPB may recommend the exercise by the Bangsamoro of additional fiscal powers in order to reach full fiscal autonomy. Such recommendations shall be proposed to Congress or the appropriate agency of the Central Government that has the power to effect such recommendations.
Article XIII
ECONOMY AND PATRIMONY
Section 1. Bangsamoro Economy and Social Justice. – The Bangsamoro Government’s economic policies and programs shall be based on the principle of social justice. Pursuant to this principle, the Bangsamoro Parliament shall legislate laws pertaining to the Bangsamoro economy and patrimony that are responsive to the needs of its people.
Sustainable Development
Section 2. Equitable and Sustainable Development. – In order to protect and improve the quality of life of the inhabitants of the Bangsamoro, development in the Bangsamoro shall be carefully planned, taking into consideration the natural resources that are available for its use and for the use of future generations.
The Bangsamoro Government shall promote the effective use of economic resources and endeavor to attain economic development that shall facilitate growth and full employment, human development, and social justice.
The Bangsamoro Government shall also provide equitable opportunities for the development of constituent local government units and shall strengthen governance systems to ensure people’s participation.
Section 3. Comprehensive Framework for Sustainable Development. – The Bangsamoro Government shall develop a comprehensive framework for sustainable development through the proper conservation, utilization and development of natural resources. Such framework shall guide the Bangsamoro Government in adopting programs and policies and establishing mechanisms that focus on the environment dimensions of social and economic interventions. It shall include measures for the reduction of vulnerability of women and marginalized groups to climate change and variability.
Section 4. Bangsamoro Sustainable Development Board. – The Bangsamoro Parliament shall create a Bangsamoro Sustainable Development Board (BSDB), an intergovernmental body composed of representatives from the Bangsamoro Government and the Central Government. The Board shall ensure the harmonization of environmental and developmental plans, as well as formulate common environmental objectives.
Funding support for the Board shall be included in the annual budget of the Bangsamoro Government. However, if there are revenues collected from the exploration, development and utilization of all natural resources within the Bangsamoro, a certain percentage of such revenues shall be allocated for the operation of the Board, as may be provided in a law to be passed by the Bangsamoro Parliament.
Section 5. Bangsamoro Development Plan. – The Bangsamoro Government shall formulate its development plans taking into consideration the Bangsamoro people’s unique needs and aspirations and consistent with national development goals. The plan shall also consider the revenue generation efforts needed for the post-conflict rehabilitation, reconstruction and development of its territory.
The plan shall include the promotion of growth and full employment, human development, and address social and economic inequities that have resulted from decades of neglect, historical injustice, poverty and inequality.
For this purpose, the Bangsamoro Parliament shall create an economic planning office.
Section 6. Gender and Development. – The Bangsamoro Government recognizes the role of women in governance and shall ensure the fundamental equality before the law of women and men. It shall guarantee full and direct participation of women in governance and in the development process and shall, further, ensure that women benefit equally in the implementation of development programs and projects.
In the utilization of public funds, the Bangsamoro Government shall ensure that the needs of women and men are adequately addressed. For this purpose, at least five percent (5%) of the total budget appropriation of each ministry, office, and constituent local government unit of the Bangsamoro shall be set aside for gender-responsive programs, in accordance with a gender and development (GAD) plan. In the same manner, at least five percent (5%) up to thirty percent (30%) of the official development funds received by the Bangsamoro shall be set aside to complement said GAD budget allocation.
The Bangsamoro Government shall establish a mechanism for consultation with women and local communities to further ensure the allocation and proper utilization of said funds. It shall identify and implement special development programs and laws for women.
Section 7. Participation of the Bangsamoro in National Development Planning. – The preceding section notwithstanding, and in order to ensure that the Bangsamoro development plans are reflected in the national development plans, the Bangsamoro shall participate in national development planning. The Chief Minister shall be a full-fledged member of the Board of the National Economic and Development Authority (NEDA).
Natural Resources
Section 8. Natural Resources, Nature Reserves and Protected Areas. – The Bangsamoro Government shall have the authority, power, and right to explore, develop and utilize the natural resources, including surface and sub-surface rights, inland waters, coastal waters, and renewable and non-renewable resources in the Bangsamoro.
The protection, conservation, rehabilitation, and development of forests, coastal, and marine resources, including the adoption of programs and projects to ensure the maintenance of ecological balance, shall be given priority.
The Bangsamoro Government shall also have the power to declare nature reserves and aquatic parks, forests, watershed reservations and other protected areas in the Bangsamoro, amending for this purpose the following laws, among others:
a. Republic Act No. 7586, otherwise known as the National Integrated Protected Areas System (NIPAS) Act of 1992, as amended by Republic Act No. 10629;
b. Presidential Decree (PD) No. 705, Revising PD 389 or the Forestry Code of the Philippines;
c. PD No. 1515 Vesting Jurisdiction and Control over Watershed Reservations in the Ministry of Energy and for other Purposes;
d. PD 87, Amending PD No. 8, An Act to Promote the Discovery and Production of Indigenous Petroleum and Appropriate Funds therefor; and
e. Republic Act No. 7942, Philippine Mining Act of 1995.
The Bangsamoro Parliament shall pass a law on protected areas, regarding the procedure for the declaration, and the management of those that are so declared, and the role of the Bangsamoro Government and other stakeholders in the process.
Section 9. Transfer of Existing Nature Reserves and Protected Areas. – The management and protection of nature reserves and aquatic parks, forests, watershed reservations, and other protected areas in the Bangsamoro territory that have already been defined by and under the authority of the Central Government shall be transferred to the Bangsamoro Government.
Within three months from the establishment of Bangsamoro Transition Authority, the Bangsamoro Government and Department of Environment and Natural Resources (DENR) as well as other relevant government agencies shall start the process of transferring these areas including the conduct of surveys of all affected areas and the planning and transition for each and every protected area. Such process shall be completed within a period not exceeding two years.
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