The economic state of the Philippines will not be affected negatively as the country shifts from a unitary to a federal form of government, Malacañang said.
This assurance came after Socioeconomic Planning Secretary Ernesto Pernia warned that regions in the country are not ready for the transition and that rushing the implementation of federalism could disrupt infrastructure programs and cause government fund deficits.
Presidential Spokesperson Harry Roque Jr. said that the said concern has already been discussed with Pernia.
“The shift to federalism, we reiterate, would have no adverse effect on the Philippine economy,” the president’s spokesman said.
As for the claim that that the government’s budget will be affected, Roque said the “identified national projects would be devolved and transferred to the internal revenue allotment (IRA) of local government units” which means the budget “will remain the same.”
With this, the local government will have projects including – maintenance of barangay roads and bridges, water supply services, barangay health centers and daycare centers, solid waste disposal system of municipalities, and more, Roque said.
He added that in this new set-up, the national government can “concentrate on policy-making” and will “continue to implement the Build, Build, Build program.”
(DAILY NEWS ROUND UP FOR 07/ 19 /18)