Hontiveros to admin: Is federalism economically feasible?

Senator Risa Hontiveros on Tuesday asked if the administration’s planned transition to a federal system of government is “economically feasible,” saying most of the proposed federal regions are not prepared for the sudden shift.

Hontiveros, in a statement, cited data from the Readiness Index for Sustained Economies Under Federalism, which reported that only five of the proposed 16 federal regions are prepared for the shift, while two are “neutral,” and nine are “less ready.”

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“Did the government take this into consideration in the drafting of the Federal Charter? Were the country’s economic managers consulted?” the senator asked.

“Has the economic cost of federalism been studied alongside the impact of inflation and the current state of the economy?” she further said.

Hontiveros also quoted some Cabinet members, including Budget Secretary Ben Diokno whom she said warned that the sudden shift to federalism could raise the government’s deficit from around 3 to 6 percent.

Socioeconomic Planning Secretary Ernesto Pernia is also “lukewarm” on federalism since many regions may be “ill-prepared to stand on their own feet,” Hontiveros said.

“The only federal set-up worth supporting is one in which accountabilities are clear and decentralized and government institutions and economic development are made more accessible and brought closer to citizens,” she said.

“Unfortunately, this is not the President’s federalism,” Hontiveros added.  /muf

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