MEMBERS of the Consultative Committee (ConCom) tasked to review the 1987 Constitution disclosed of the projected advantages for Central Luzon in the proposed shift to federalism in the country today.
During the Regional Federalism Roadshow held at the Pampanga Capitol Wednesday, ConCom member Prof. Edmund Tayao said that Central Luzon is one of the regions that will significantly benefit once it becomes a federated region.
Tayao cited the financial independence Central Luzon may enjoy once it becomes a federated region, explaining that the region may have full discretion on managing its own finances, including revenues and taxes it generates.
Under the current Philippine unitary form of government now, Tayao said that all revenue generation and taxation collected by the local government units (LGUs) are being remitted to the national government.
Only 17 to 18 percent of the remitted funds will then be plowed back to the LGUs in the form of internal revenue allotment, and the disbursement of the remaining 82 percent will be under the discretion of the national government.
Based on the records presented by the ConCom, Central Luzon is one of the three regions that hit the trillion peso-mark on its gross regional domestic product at P1,304,479,312,000 after National Capital Region and Calabarzon.
Once the proposed draft on federalism government is approved, Tayao said Central Luzon will be able to utilize its own finances on the project that it deems necessary for its growth without the need for approval from the national government.
“This will be effective in the implementation of the development strategy of the region. In our proposed federal form of government, the federated regions can decide on its own on where to spend its money, and on what project it will implement based on the needs of the community,” he said.
“In this way, the prioritization of projects will be more efficient since the local government knows better which projects need to be funded and when to fund it based on their strategy on how to boost and sustain the economic growth in their area,” he further explained.
While the continuous rise of infrastructure projects transpires in Central Luzon through the administration’s “Build Build Build” program, Tayao said that it can only do much without the growth potential being offered in the proposed federal form of government.
Under the proposed new constitution, Tayao said that power and opportunities in Metro Manila will be decentralized and will provide equal opportunity to other federated regions in inviting businessmen and locators to invest in their area.
At present, Tayao said that most industries conduct their businesses, like mining, quarrying, and construction in the provinces but prefer to have their offices, and pay taxes in Metro Manila due to the accessibility and convenience.
“This scenario already happened in various countries like China and Bangkok. They built huge buildings but were not occupied because the economic activity in the area did not match the demands of the locators, and still preferred the mainlands despite being congested. This is what we are trying to address through federalism,” he said.