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By Efren L. Danao, Senior Reporter
A P100-billion “Federal Equalization Fund”
administered by a Federal Equalization Council will assist less
developed federal states and enable them to catch up with
economically advanced states, Senate Minority Leader Aquilino
Pimentel Jr. said on Sunday.
Doubts have already been raised whether the
proposed federal states of Bangsamoro, Eastern Visayas, and Bicol
can come up with the needed resources to provide the basic services
that they should shoulder once the Philippines shifts to a federal
form of government.
Pimentel, principal author of Joint Resolution
10 pushing for federalism, said the equalization fund answers the
frequent questions on whether less developed states could cope with
the financial burden of highly autonomous federal states.
Article 18 of the joint resolution states that
the equalization council, which shall be an independent
constitutional body and with one member each from the 11 federal
states and the Federal Administrative Region of Metro Manila, will
administer the equalization fund to enable the less developed ones
to provide basic government services. The President may also appoint
four more council officials representing the federal republic,
bringing the total membership to 16.
The equalization fund shall be derived from
one-half of the proceeds of duties on imports, “sin taxes,” and
one-tenth of the revenues of the Philippine Charity Sweepstakes
Office and the Philippine Amusement and Gaming Corp.
Pimentel said that if these would not total P100
billion, then the federal Congress would look for other sources of
funds. The amount will be included in the General Appropriations Act
after the revisions on the Constitution are passed by Congress.
“Don’t tell me that Congress would be so
unimaginative that it could not find other sources to meet the
required P100-billion equalization fund,” he told The Manila
Times.
The proposed equalization council shall be
headed by the person elected by its members among themselves. The
chairmanship will be rotated every two years.
Some 15 senators already expressed support for
the proposed shift to the federal system and Pimentel is predicting
that the number could even reach 18.
The Senate minority leader said several
congressmen had already expressed willingness to initiate a similar
move in the House of Representatives. He identified Speaker Prospero
Nograles Jr., former Speaker Jose de Venecia Jr., Deputy Speaker
Raul del Mar, Rep. Antonio Cuenco of Cebu City, Rep. Edelmiro Amante
of Agusan del Norte, Rep. Monico Puentebella of Negros Occidental,
Rep. Rufus Rodriguez of Cagayan de Oro City, and Rep. Jose Solis of
Sorsogon as among those pushing for a counterpart measure in the
House.
Nograles said the economic provisions in the
Constitution should be included in the debate on Charter change, or
“Cha-cha,” besides the shift to federalism. He cited the
“restrictive provisions’’ on land ownership by foreign
investors, among others, that had contributed to the slow growth of
investments in the Philippines and which should be removed to create
a better climate for investment in the country.
He noted that other countries in Asia-Pacific
had opened up their economies and he saw no reason why the
Philippines could not do the same.
Nograles had said he was open to debating
amendments to the 1987 Charter, but, if approved, the changes should
be implemented after President Gloria Arroyo steps down in 2010.
Pimentel said the principal aims of his joint
resolution are to start the debates rolling and make the issue more
understandable to ordinary people.
“It is of utmost importance that the shift
from the highly centralized unitary system to the decentralized
federal system be debated now within and outside Congress to prepare
the people for an alternative system of government that is
responsive to the needs of the Filipino nation,” he explained.
Sen. Richard Gordon, chairman of the Senate
Committee on Constitutional Amendments, said he would start hearing
Pimentel’s resolution after he is through with the proposed
automation of the elections in the Autonomous Region in Muslim
Mindanao and the pending political reform bills.
Pimentel said his measure would not affect the
scheduled 2010 presidential elections, nor would it shorten or
extend terms of incumbent elected officials.
“Even if Congress approves the adoption of a
federal system before the 2010 elections, its implementation is
likely to be delayed,” he stressed.
A transition period is needed for a shift but
Pimentel said the length of this period is no longer under his
control since it will depend on the next President.
-- With Angelo S. Samonte
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