Solutions Expected Amid Concerns on Draft Charter

The concerns raised by the administration’s economic managers on the government’s proposed shift to federalism could still change as the current draft Charter is still subject to change, Presidential Spokesperson Harry Roque said on Thursday.

However, Malacañang respects the economic managers’ views, Roque said, adding that at the same time, they are expected to find alternatives or solutions to make the President’s bid for federalism a reality.

“What they were objecting to is because they have unanswered question on the existing proposals made by the Consultative Committee,” he said.

But in absence of an “answer,” Roque said it is “incumbent upon the alter egos” to find ways and means to push the federalism agenda forward.

The Palace official said what the economic managers cited in raising their concerns was the current draft as they saw issues in it, and not the entire federalism effort per se.

“I don’t think any of the declarations made by the economic managers are conclusive,” he said. “I think there’s a hundred percent agreement that we are pushing for federalism. The exact mechanics of how to do it, well, no one can claim a monopoly.”

Finance Secretary Carlos Dominguez III earlier raised concerns that the country’s investment grade credit ratings would go downhill should the shift push through under the current draft charter.

Socioeconomic Planning Secretary Ernesto Pernia also warned it may be costly for the government if it proceeds, estimating the fiscal deficit to the gross domestic product ratio could easily jump to about 6 percent.

However, Roque argued this could be avoided if the transition is done properly.

“It’s a matter of working within a given budget and transferring funds from one pocket to another,” he said.

“We’re talking about devolving services to regional governments and we’re talking about, yes, creating new bureaucracies under the regional governments but we’re also talking about reducing the current national bureaucracy. My view is, it does not have to result in a bloated budget, which may result in a bigger deficit,” he explained. (PNA)