Concom, DILG dispute NEDA cost estimate on federalism

MANILA, Philippines — Members of the consultative committee (Concom) that reviewed the 1987 Constitution disputed anew yesterday the claim of the National Economic and Development Authority (NEDA) that the national government might incur as much as P243.5 billion in additional expenses to operate a federal government.

Interior and Local Government Assistant Secretary Jonathan Malaya disputed NEDA Undersecretary Rosemarie Edillon’s estimate that the shift might result in additional costs ranging from P156 billion to P243.5 billion every year.

“There were wrong assumptions made by NEDA and DOF (Department of Finance) because they never even came to the Concom and asked the Concom about the details of the constitution,” Malaya said at a press briefing in Malacañang. “Remember, not all the details can be put in the constitution. There are underlying studies and discussion papers that come with the constitution.”

Concom members Edmund Tayao and Susan Ubalde-Ordinario also shared Malaya’s stand on the issue as they expressed hope that the inter-agency committee will be able to make a final draft along with the executive branch.

Malaya said NEDA and DOF officials may have had wrong assumptions that the entire bureaucracy will be duplicated in the regional government. 

“You have to look at the expenditure assignments on what goes to which region and then… if for example, the Department of Education,” he said, noting the expenses will be shouldered by regional governments when the jobs of DepEd workers, for example, are devolved.

“The assumptions, we feel, are mistaken because they bloated the costs… the solution here is more technical discussions between the Concom and the DBM (Department of Budget and Management) and the NEDA so that we will not have different figures,” Malaya added.

“The problem is the NEDA has its own figures, the DOF has its own figures and the Concom has its own figures when in fact it is the Concom that has to be listened to because it’s them that prepared the draft federal constitution and the DOF and NEDA are simply commenting on the draft of the Concom,” he also said.

Malaya gave assurance that the DILG is “prepared to work with them” (DOF, NEDA) in the future for more technical discussions “so we can have an agreement on the actual costs of the bayanihan federalism.”

Meanwhile, NEDA is proposing a 15-year transition to a federal form of government to prevent disruption to the country’s economic growth momentum.

Socioeconomic Planning Secretary and NEDA director-general Ernesto Pernia has said the agency is not opposed to the shift to federalism, but the administration cannot rush into a new form of government, especially if regions remain ill-equipped to weather changes.

He noted that any form of uncertainty involving the country’s economic environment can cause disruption to growth.

In a meeting on Wednesday, NEDA recommended a 15-year transition roadmap in a paper submitted to the constitutional review committee.

NEDA said this period will be divided into five phases focused on reorganization and piloting of more developed federal regions.

The Concom chaired by former chief justice Reynato Puno initially proposed a three-year transition to a federal government but NEDA deems it “not implementable.”

NEDA Undersecretary for policy and planning Rosemarie Edillon, who presented the proposed transition period during the Economic Development Cluster meeting, said there is still a lot to be done to capacitate regions to operate independently.

“We need a forward-looking strategy to strengthen the capacities of the bureaucracy at both the regional and local levels to take on central office functions,” she said.

Under NEDA’s proposal, the first phase of the transition will last for one year and will be focused on conducting spatial analysis of federated regions and their socioeconomic profiles, accounting of government workforce and functions as well as the mapping of existing laws, regulations and policies.

This will be done alongside a review of the 1987 Constitution, NEDA said.

The second phase, to be implemented over five years, will lay down the foundation for federalism through the adoption of a transitional period charter and the establishment of a Federal Transition Commission. – With Czeriza Valencia