Palace twits Pernia: Federalism has no adverse effect on economy

Presidential Spokesperson Harry Roque and Socioeconomic Planning Secretary Ernesto M. Pernia. INQUIRER FILE PHOTOS

The shift to a federal system of government would not have any “adverse effect” on the economy, Malacañang said on Wednesday, after the country’s top economist cautioned that federalism could drain government finances.

Presidential Spokesperson Harry Roque said the Palace has already “discussed and clarified the matter” with Socioeconomic Planning Secretary Ernesto Pernia.

In an interview over One News channel, Pernia said federalism could disrupt infrastructure projects of the administration and “wreak havoc” on the country’s fiscal situation.

“The shift to federalism, we reiterate, would have no adverse effect on the Philippine economy. 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,” Roque said in a statement.

“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,” he added.

The administration has embarked on a P8-trillion infrastructure spending within the six-year term of President Rodrigo Duterte. Dubbed as “Build, Build, Build”, the program is seen to improve Philippine economy.

“The role of the national government would be to continue to implement Build, Build, Build projects and would hence be concentrated on policymaking,” Roque said.

The shift to federalism was one of the campaign promises of Duterte, which he believed would address decades long economic and social issues in the country. With a report from Kristine Macasiray, INQUIRER.net intern   /kga