The Manila Times

Will federalism bankrupt the government?

- RICARDO SALUDO

issues in recasting the Philippine­s’ centuries-old unitary form of government, which has been around since Spain colonized the archipelag­o in the 16th century, into a federal system never tried before.

Indeed, Wendell Adrian Tamayo, head of the technical working group of the consultati­ve committee, which drafted the proposed new charter, said recently that the government would need P2.2 trillion just to establish new entities under the revised constituti­on, including 16 federated regions ( FRs), the Bangsamoro and Cordillera autonomous regions, four federal courts, and six constituti­onal commission­s.

For their part, the economic managers pointed out what they saw as a big missing ingredient in the draft charter. While it spelled out revenue sharing between the envisioned federal and regional government­s, with tens of billions of pesos in additional annual revenues expected to go to the regions, there were no provisions on expenditur­e sharing.

Hence, the fear that the federal

by giving up mammoth monies, while still having to fund the lion’s share of government programs, projects and investment­s.

Share revenues and expenditur­es alike

For Secretarie­s Dominguez, Pernia and Diokno, it wasn’t enough that Article XII, titled Distributi­on of Powers of the Government, transferre­d major national functions to the FRs, thus relieving the federal administra­tion of the huge costs for such tasks. The

budget czars wanted to see numbers setting out how expenditur­es would be distribute­d between federal and regional government­s.

So, why didn’t they propose such numbers and provisions to the Con-com in the months when the draft charter was written. Key agencies got copies of the draft at various stages, but no provisions were submitted by the Department of Finance, the National Economic and Developmen­t Authority, and the Department of Budget and Management to

concerns about federalism.

For sure, DOF, NEDA and DBM had many pressing concerns on their plate in the past several months, especially with the surge

reforms implemente­d this year.

But given the future- shaping impact of constituti­onal revision, the Cabinet should still have made time and given attention for crafting the federalism constituti­on, a centerpiec­e of President Rodrigo Duterte’s change agenda.

Well, better late than never. Having raised federalism concerns, but still professing to support the systemic shift, the DoF, NEDA and DBM chiefs, along with other agencies, should propose to Congress draft provisions addressing those issues.

Do they want revenue sharing matched with actual expenditur­es taken over by each federated region, rather than a set amount transferre­d to every FR, whatever the programs and projects it actually undertakes?

Should there be standards and requiremen­ts for FR government­s, such as expert agencies to handle delegated functions, before they actually assume those tasks and the funds for them?

Must the federal government get a set amount for programs and projects it still takes responsibi­lity for, before the FRs divide the spoils? As drafted, it seems to be the other way around: the charter would allocate revenues to the

- ernment making do with leftovers.

Other Cabinet department­s may also have provisions to add or revise. The Department of the Interior and Local Government may wish to include governance standards for FR administra­tions. DILG, the Department of Justice, the Philippine National Police, the Philippine Drug Enforcemen­t Agency, and other law enforcemen­t entities may have issues with the powers given to FRs in regional justice, security, and public safety.

The Department of Health already saw many local government units fall short in DoH functions devolved under the Local Government Code of 1992. It too might want the handover of functions done gradually, with competency and quality of service parameters set, if not in the charter, at least by the Federal Congress.

The Department of Environmen­t and Natural Resources is also no stranger to LGU failings, as seen in the deteriorat­ion of Boracay due to poor enforcemen­t and probably corruption in the local administra­tion. DENR would also want standards and parameters set for the exploitati­on of land, water, mineral and other bounties.

That’s just seven Cabinet department­s and a few other agencies. Other entities would want their say, including the judiciary, the audit, civil service, election, and human rights commission­s,

- man. Plus, the military, which already took issue with the proposed removal of its designatio­n in the 1987 Constituti­on as “protector of the people.”

Can Congress produce a quality charter?

With many agencies yet to input into the new constituti­on, along with key sectors like business, labor, urban and rural communitie­s, and major religions, can Congress get the job done in time and with quality?

Well, if the 50-member Constituti­onal Commission appointed by then-President Corazon Aquino could produce the current charter, which most Filipinos don’t want to revise for now or forever, the incumbent two-chamber elected Congress, with 321 members and far bigger budget and bureaucrac­y, surely would do an equally decent job in about the same six months or so that it took to draft the current charter.

Still, there would be a much better revision if it is given more time and

constituti­onal convention unburdened by other legislativ­e matters, plus campaignin­g for the 2019 elections. A con-con would also avoid vested interests and political ambitions impinging on its work and detracting from its credibilit­y.

Hence, Congress should seriously consider passing the work of Cchange to a constituti­onal convention elected in 2019 and tasked with proposing a charter for 2020 referendum.

Give President Rodrigo Duterte’s paramount legacy an extra year and a dedicated commission. Why not?

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