Palace reiterates federalism won’t hurt the economy

Malacañang on Wednesday, July 18, maintained that the country’s shift to federalism would have no adverse impact on the economy.
But Socioeconomic Planning Secretary Ernesto M. Pernia said in his interview with The Chiefs on Cignal TV’s One News last Monday that President Rodrigo R. Duterte’s economic management team believes not all regions in the country are ready for federalism.
In a statement on Wednesday, Presidential Spokesperson Harry L. Roque, Jr. said, “We have already discussed and clarified the matter with National Economic and Development Authority (NEDA) Director-General and Secretary Ernesto Pernia. The shift to federalism, we reiterate, would have no adverse effect on the Philippine economy.”
He added: “Our budget would remain the same, as identified national projects would be devolved and transferred to the internal revenue allotment (IRA) of local government units. These projects include maintenance of barangay roads and bridges, water supply services, barangay health centers and daycare centers, solid waste disposal system of municipalities, among others.”
The role of the national government, according to Mr. Roque, “would be to continue to implement Build, Build, Build projects and would hence be concentrated on policymaking.”
Mr. Pernia, in his interview last Monday explained that “Federalism my be good for the economy and for the people but we really have to do our homework first in terms of preparing well for the country to be ready for federalism.”
He also said that “it’s unlikely that the regions will be ready” for a federal form of government and that moves to spend over P8 trillion on infrastructure till 2022, when Mr. Duterte ends his six-year term, could lose steam… The momentum of infrastructure improvement in the regions is going to be disrupted.” — Arjay L. Balinbin