The shift to federalism, the cornerstone of the Duterte administration, aims to maximize the growth potential of regions and local governments by granting them fiscal autonomy.
Economic experts as well as lawmakers flagged fiscal risks in implementing federalism since many regions may be ill-prepared to stand on their own feet. One of the indicators of a region’s self-sufficiency is its reliance on internal revenue allotment (IRA). IRA refers to local government units’ (LGUs) share of the national government’s revenue.  If federalism pushes through, the regions least dependent on IRA could be the only ones capable of sustaining their basic operations.
The chart below shows how much of each region’s total operating income comes from IRA.
Which regions are most reliant on IRA?