Special Purpose Fund

Pension and Gratuity Fund. The amount of One Billion Seven Hundred Fifty-Three Million Five Hundred Twenty-Five Thousand Four Hundred Twenty-Five Pesos (₱1,753,525,425.00) herein appropriated shall cover the payment of the following:

• Retirement benefits of the Bangsamoro Government personnel; and
• Retirement/Separation benefits or incentives of affected personnel with permanent appointments, as attested by the CSC, due to the transfer of the Province of Sulu from BARMM to Region IX (Zamboanga Peninsula), who would opt to retire or be separated from the service pursuant to the implementation of E.O. No. 91, s. 2025.

Contingent Fund. The amount of Eleven Billion Three Hundred Forty-Five Million Three Hundred Seventeen Thousand Seventy-Six Pesos and Ninety Centavos (₱ 11,345,317,076.90) herein appropriated shall cover the funding requirements of new or urgent projects and activities of the Bangsamoro Government's M/O/As, and GOCCs that need to be implemented or paid during the year, such as, but not limited to the following:

• Digitalization of BARMM Bureaucracy. The amount herein appropriated may also be used for the funding requirements for initiatives related to the digitalization of BARMM bureaucracy;
• Islamic Finance Programs. The amount herein appropriated may be used for the funding requirements of Islamic Finance-related programs, activities, and projects subject to Section 30 of this Act;
• Transitional Development Impact Fund. The Implementing Ministry/Office/Agency shall be primarily responsible in the implementation and monitoring of the projects charged against the fund;
• Provision for cost of acquisition of Al-Amanah Islamic Bank and other related costs;
• Customs Duties and Taxes, including Tax Expenditures. The amount herein appropriated may be used to support the tax expenditures of the various Bangsamoro Government's M/O/As and the assumed tax payable on foreign assistance and donations for the Bangsamoro, such as, but not limited to, the Japan Government Assistance;
• Education Programs. The amount herein appropriated may be used for the funding allocation of Education Programs and Projects previously provided by the National Government and continuously enjoyed by other administrative regions;
• Infrastructure Projects. The amount herein appropriated may be used for other infrastructure projects such as but not limited to the Humanitarian and Development Assistance Program (HDAP) of the defunct Autonomous Region in Muslim Mindanao (ARMM), the completion of which were affected by inflation, COVID-19 pandemic, and transition adjustments subject to submission of common engineering documents;
• Support to National Prosecution Service in the BARMM. The amount herein appropriated may be used to support National Prosecution Service in the BARMM, pursuant to Muslim Mindanao Autonomy Act. No. 310;
• Special Provisions. The funding for the special provisions as provided in this Act shall be charged against this appropriation; and
• Other Expenditures. The amount herein appropriated may be used to support programs, activities, and projects mandated by law, and any unforeseen programs and activities not covered by this Act, subject to technical assessment and approval of the Chief Minister.

Special Development Fund. The amount of Five Billion Pesos (P5,000,000,000.00) herein appropriated shall be used for the rebuilding, rehabilitation, and development of conflict-afflicted communities within the Bangsamoro Region, pursuant to Section 2, Article XIV of RA 11054, otherwise known as the Bangsamoro Organic Law. The Two percent (2%) of the total amount of annual Special Development Fund shall be used to support the operations of the new Special Development Fund – Program Management Office herein established.

Special Development Fund Board (SDF Board). There is hereby created a Board which shall be directly under the supervision of the Office of the Chief Minister (OCM). The Board shall be supported by a Program Management Office (SDF-PMO) with sufficient personnel headed by an Executive Director equivalent to a Director IV and assisted by a Deputy Executive Director equivalent to a Director III, who shall be appointed or designated by the Chief Minister. Their appointments shall be coterminous with the appointing authority. The Chief Minister shall prescribe the organizational structure and staffing pattern of the SDF-PMO, which shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) of the Bangsamoro Government. The Board shall be chaired by the Senior Minister; other members shall be determined by the Chief Minister. The Executive Director shall serve as the Vice-Chairperson of the Board. The SDF-PMO shall serve as the Secretariat of the Board. The Chief Minister, through the Board, shall set the policies and guidelines on the selection and implementation of special development fund programs, projects, and activities (SDF-PPA). The SDF-PMO shall be responsible for the planning and implementation of SDF-PPA and shall ensure that the same is consistent with the existing Bangsamoro Development Plan, subject to the review, deliberation, and evaluation by the SDF Board. It may call upon any ministry, bureau, office, agency, or instrumentality of the Bangsamoro Government for such assistance as it may need in the performance of its functions. The Chief Minister may reassign any personnel of the Bangsamoro Government to the SDF-PMO upon recommendation of the Head of the SDF-PMO. The Chief Minister, upon recommendation and submission of SDF-PPAs by the SDF Board, shall review and approve the SDF-PPA in accordance with the policies and guidelines issued on the selection and implementation thereof, and shall ensure the optimal use of funds toward high-impact, capital-intensive flagship projects.

Sustainable Assistance Mechanism for Local Moral Governance. The amount of Five Billion Two Hundred Six Million One Hundred Forty-Six Thousand One Hundred Pesos (₱ 5,206,146,100.00) is herein appropriated for the following purposes:

• Share of the Constituent Local Government Units in taxes, fees and charges collected within the Bangsamoro Autonomous Region. The share of the Bangsamoro Government in national taxes, fees, and charges collected in the Bangsamoro Territorial Jurisdiction shall be available for disbursement in accordance with the Title III, Chapter II, Section 313 of the Bangsamoro Local Governance Code. The fund shall be released to the local government units upon actual receipt of the funds by the Bangsamoro Treasury from the National Government and determination of the allocative proportion of LGU shares based on details of shares distribution attached to the actual collection certification issued by DOF-BIR. In the disbursement of the shares released, the recipient LGUs are required to take into consideration the 2nd Bangsamoro Development Plan 2023-2028 containing the six (6) Overall Development Goals with eight (8) Development Strategies. For this purpose, recipient local government units are required to submit reports on the disbursement and utilization of the shares received to the MFBM copy furnished the MILG. The Bangsamoro Government shall endeavor to fully release the Share of the Constituent Local Government Units in taxes, fees and charges collected within the Bangsamoro Autonomous Region. The amount released shall be available for obligation and disbursement by the LGU until fully expended.
• Support to Constituent Local Government Units. The fund herein appropriated may also be made available upon the submission of Special Budget Request of Constituent LGUs for the following projects:
• implementation of agriculture-related programs and projects, such as: (a) provision of agricultural support services, which include planting materials distribution system and operation of farm produce collection and buying stations; (b) extension of on- site research services and facilities related to agriculture and fishery activities; (c) construction, restoration and improvement of infrastructure facilities, including farm-to-market roads, slaughterhouses, small water impounding projects, fishports, and water supply systems; and (d) provision of various production inputs for crops, livestock and poultry, and fisheries;
• implementation of programs, projects, activities to support locally thriving industries and development of local arts and crafts; (iii) implementation of programs, projects and activities for the protection, preservation and promotion of cultural heritage, including restoration, rehabilitation, repair, improvement and/or maintenance of local heritage structures and sites;
• Information and Communications Technology systems and infrastructure development, such as, but not limited to, establishment of Integrated Business Permit and Licensing System, and digitalization of payments for collections and disbursements, and purchase and installation of Closed-Circuit Television (CCTV) Surveillance System;
• construction, concreting, rehabilitation, repair, improvement, expansion or upgrading of any of the following projects: (a) local roads/or bridges; (b) public markets; (c) multi-purpose buildings; (d) water supply and sanitation projects; and (e) public cemeteries;
• establishment of operation center and evacuation center with completed facilities, and provision of disaster equipment, early warning devices / system, to support camp coordination and camp management/evacuation management mechanism operations; (vii) establishment of Residual Containment and Materials Recovery Facility with sorting station, drop-off center, composting facility, and recycling facility; (viii) implementation of programs, projects and activities for disaster preparedness, response, rehabilitation, and recovery, which include provision of IEC Materials for different hazards, and procurement/acquisition of disaster equipment and vehicles for disaster response and rescue activities;
• assistance to the capacity development to DRRM and CCA activities such as LDRRMP, LCCAP, Contingency Plans, CBDRRM Trainings and Workshops and other related activities that may respond to any disaster;
• climate change adaptation and mitigation projects;
• purchase of ambulance, trucks, and multi-purpose vehicles; (xii) improvement and rehabilitation of local peace and order public safety facilities to ensure community security and protection, and crime prevention: CCTVs, street signages, etc.; (xiii) assistance to indigent individuals or families in any of the following forms: (a) medical; (b) burial; (c) transportation; (d) food assistance; and (e) educational assistance/scholarship; and (f) purchase of construction or repair materials for houses destroyed during human-induced or natural calamities, upon endorsement by the local social welfare and development office or equivalent of partially/totally destroyed houses.
• Financial Subsidy to Newly Created Local Government Units Pending the Release of their Share from the National Tax Allotment. The fund herein appropriated may be used for the funding requirements of the financial subsidy to the newly created municipalities and other Local Government Units (LGUs) that may be created. Provided, that the financial subsidy to the newly created LGUs shall only be available until such time that the LGU has been allocated its share in the national tax allotment, subject to usual accounting and auditing rules and regulations.
• Support to BARMM Barangays without National Tax Allotment. The fund herein appropriated may be used for the provision of subsidy to BARMM Barangays without National Tax Allotment, subject to the submission of validated list of beneficiary Barangays by the Ministry of the Interior and Local Government (MILG). The amount appropriated herein for (b), (c) and (d) once released, shall be made available for obligation and disbursement for the purpose specified until fully expended. Disbursement and utilization by the LGUs shall be subject to existing procurement laws and pertinent procurement policies issued by the Government Procurement Policy Board (GPPB), applicable budgeting, accounting and auditing rules and regulation, and such other guidelines to be issued for the purpose. The fund shall be released to the local government units by the MFBM through the BTO upon compliance with the requirements as may be prescribed by the MFBM. For this purpose, the MFBM may issue guidelines on the release and reporting of funds.?

Bangsamoro Support Fund to Judiciary. The amount of Thirty Million Three Hundred Sixty Thousand Pesos (₱ 30,360,000.00) herein appropriated as Bangsamoro Support Fund to Judiciary shall be available for the funding requirements of the financial assistance to the Courts operating within BARMM.

Quick Response Fund. The amount of One Billion Seven Hundred Twelve Million Pesos (₱1,712,000,000.00) herein appropriated for the Quick Response Fund (QRF) shall serve as a stand-by fund to be exclusively used for:

• Agriculture 300,000,000.00
• Social Services 662,000,000.00
• Health 250,000,000.00
• Infrastructure and Equipment 200,000,000.00
• Education 200,000,000.00
• Machineries 100,000,000.00 Agriculture. The amount of Three Hundred Million Pesos (₱300,000,000.00) herein appropriated shall serve as a stand-by fund to be used for: (i)provision of various production inputs for crops, livestock and poultry, and fisheries; and (ii) provision of other assistance in the form of cash for culled live animals or equipment and supplies directly used to mitigate the effects of a disaster, and necessary tools and supplies to mitigate the effects of an ongoing disaster. Social Services. The amount of Six Hundred Sixty-Two Million Pesos (₱662,000,000.00) herein appropriated shall serve as a stand-by fund to be used for immediate response and relief programs. Health. The amount of Two Hundred Fifty Million Pesos (₱250,000,000.00) herein appropriated shall serve as a stand-by fund to be used for the rehabilitation and repair of health facilities, replacement of medical equipment, as well as provision for emergency medical assistance. Infrastructure and Equipment. The amount of Two Hundred Million Pesos (₱200,000,000.00) herein appropriated shall serve as the stand-by fund to be used for reconstruction and rehabilitation programs, activities, or projects. Education. The amount of Two Hundred Million Pesos (₱200,000,000.00) herein appropriated shall serve as the stand-by fund to be used for reconstruction and rehabilitation of school buildings and facilities. Machineries. The amount of One Hundred Million Pesos (₱100,000,000.00) herein appropriated shall serve as the stand-by fund to be used for acquisition of machineries for reconstruction and rehabilitation programs, activities, or projects. These appropriations shall be used to quickly normalize the situation and living conditions of people in the Bangsamoro communities affected by calamities, crises, and catastrophes that occurred from the last quarter of the immediately preceding year and those occurring during the current year.₱300,000,000.00

Infrastructure Modernization and Public Asset Construction and Transformation. The amount of Php17,500,000,000.00 herein appropriated shall cover the funding of infrastructure projects such as but not limited to the following:

• Establishment of the Seat of the BARMM. The amount may be used for the implementation of the Bangsamoro Autonomy Act No. 37, otherwise known as the Seat of the Government Act of 2023, subject to the preparation and development of master plan, strategies, processes, and timetable for the development of the seat of the Government of the BARMM, which shall be led by the Committee of Establishment Seat of Government of the BARMM;
• Strategic Infrastructure Project. The amount herein appropriated may be used for funding of high impact, capital intensive flagship projects; and
• Other infrastructure projects. The amount herein appropriated may be used for funding of other infrastructure projects particularly for education, health, and agriculture. The Office of the Chief Minister may provide a mechanism or structure for the implementation of these funds and may issue an Executive Order for this purpose.