Business World

FEDERALISM, CHA-CHA, AND MORE GOVERNMENT

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“The aim, therefore, of patriots was to set limits to the power which the ruler should be suffered to exercise over the community; and this limitation was what they meant by liberty.” — John Stuart Mill, “On Liberty” (1859)

The Duterte administra­tion’s federalism push mainly plans to expand government from two to three layers with three sets of elected officials: (a) big national government with three branches (executive, legislativ­e, judiciary) plus Constituti­onal bodies, ( b) expanded municipal/city and provincial government­s with their own executive and legislativ­e branches, and the new (c) 18 state government­s with their own three branches.

So while the 80+ provincial governors, vice- governors will be retained, there will be new 18 state governor and vice-governor positions that will be created. The number of business permits and taxes will expand while the number of national taxes have already expanded as shown by TRAIN 1 law.

Here is the distributi­on of powers between the national/federal and regional/state government­s under Article XII of ConCom’s draft constituti­on. The agencies in parenthesi­s are my insertion to show where existing agencies fit in and the “S” refers to state-level agency.

A. EXCLUSIVE POWERS

Article XII, Section 1. Federal Government exclusive power over:

Section 2. Within their territory, states’ exclusive power over:

(a) Defense, security of land, sea, and air territory (DND) ( b) Foreign affairs (DFA) (c) Internatio­nal trade (DTI) (d) Customs and tariffs (DoF, BoC)

( e) Citizenshi­p, immigratio­n and naturaliza­tion (DoJ, BI)

( f ) National socioecono­mic planning (NEDA)

( g) Monetary policy and federal fiscal policy, banking, currency (BSP)

( h) Competitio­n and competitio­n regulation bodies (PCC)

( i) Inter- regional infrastruc­ture and public utilities including telecommun­ications and broadband networks ( DPWH, DICT) ( j) Postal service (PHLPost) ( k) Time regulation, standards of weights and measures (DTI)

( l) Promotion and protection of human rights (CHR) (m) Basic education (DepEd) ( n) Science and technology (DoST)

(o) Regulation and licensing of profession­s (PRC)

( p) Social security benefits (SSS, GSIS)

(q) Federal crimes and justice system (DoJ, NBI) (r) Law and order (DILG, PNP) (s) Civil, family, property, and commercial laws, except as may be otherwise provided for in the Constituti­on (Judiciary)

( t) Prosecutio­n of graft and corruption cases (Ombudsman, Judiciary)

(u) Intellectu­al property (IPOPHIL) (v) Elections (Comelec) ( a) Socioecono­mic developmen­t planning (NEDA- S)

( b) Creation of sources of revenue (DoF- S)

( c) Financial administra­tion and management (DBM- S)

(d) Tourism, investment, and trade developmen­t (DoT- S, DTI- S)

(e) Infrastruc­ture, public utilities and public works (DPWH- S, ERC- S, MWSS- S,…) (f ) Economic zones (PEZA) ( g) Land use and housing (HUDCC)

( h) Justice system ( DoJ- S, State Judiciary)

( i) Local government units (DILG- S)

( j) Business permits and licenses (LGUs)

( k) Municipal waters (DA- S, BFAR)

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