Cebu City – With the Duterte administration being “very vocal” in pushing for federalism, the Philippine Institute for Development Studies (PIDS) said Central Visayas may not be able to weather the transition.
PIDS Senior Research Fellow Rosario Manasan said that while a federal government would enable LGUs to have “more control” over their finances, development plans and laws exclusive to their jurisdiction, not all LGUs will have the financial capacity to do so, and would continue to depend on the central government for reinforcement.
In a federal system, taxing and spending powers are given over to local governments or federal states, which gives them a free hand to decide how and where to use their budgets.
“With this setup, they will be able to spend their funds on projects and policies that are responsive to the needs of their localities without seeking approval from the national or federal government,” said Manasan during a recent forum here.
The national government would only handle interests that affect the entire country such as foreign policy and national defense.
PIDS Senior Research Fellow Rosario Manasan said that while a federal government would enable LGUs to have “more control” over their finances, development plans and laws exclusive to their jurisdiction, not all LGUs will have the financial capacity to do so, and would continue to depend on the central government for reinforcement.
In a federal system, taxing and spending powers are given over to local governments or federal states, which gives them a free hand to decide how and where to use their budgets.
“With this setup, they will be able to spend their funds on projects and policies that are responsive to the needs of their localities without seeking approval from the national or federal government,” said Manasan during a recent forum here.
The national government would only handle interests that affect the entire country such as foreign policy and national defense.
