Fatal. Princes Micaella E. Rosita, Jemiah E.

Opalec, Ara C.

“Federalism is the mixed or compound mode of government, (the central or

‘federal’ government) with regional governments (provincial, state, cantonal, territorial or
other sub-unit governments in a single political system… (It is defined) as a form of
government in which there is a division of powers between two levels of government of
equal status.” Currently, we are under the unitary system, which the states are
administrative arms of the central government and the national government is
sovereign.

The benefits that would arise if federalism will be effected; where the
federal states have wide controls to improve their own social, economic, and political
potentials due sharing of powers in a federal system. Also it motivates
local governments to take initiatives and become self-sustained. Additionally, the
adoption of the federal system will enable certain groups a broader chance to uphold
their own identity and culture and their own economic development at their own pace
without the need of seceding or declaring their independence from the republic because
they will be responsible and obliged with taxes of all kinds to assist and sustain the
federal central government and regional governments. To assure economic rents and
accumulate wealth which can be easily abused, ushering in corruption. Also, the
absorption of authority and resources in the president of the Philippines over fiscal
resources and appointments in the bureaucracy can be used. When corruption
encompass unbearable limits, political inharmony accentuate and insecurity arises.

On the other hand, the disadvantages outnumber the advantages mentioned

above. NEDA says that during the implementation of federalism, it would lead to
unquantifiable costs because there may be a mismatch not only in funds, but also in
spending that will impede the delivery of goods and services under jurisdictions.

One of the obvious reasons why federalism is not for the Philippines is that it will
be costly to form a multilayer of government structure comprising of central and regional
governments that will create an enlarged and bloated bureaucracy. Federalism involves
massive government spending. First off is the cost of shifting to federalism amounting to
P44-72 billion according to Philippine Institute for Development Studies (PIDS). It
includes the salaries of governors and vice governors of each state, more senators,
more government staff, more offices and their operating expenses. In addition, the cost
of running a federal government could cost the national government an annual P243
billion. This can substantially affect the economic standing of the Philippines by creating
more debt and inevitable disruptions to the economy’s growth momentum and

progress in infrastructure improvement efforts.

Furthermore, a federal system of government gives wealthier regions greater

power as they will have better control in raising their revenues and enhance their
competitiveness. Thus, it will strengthen political dynasties in the regional governments,
perpetrate themselves in power and amass vast wealth through corruption. On the other
hand, those who lack the basic administrative capacity of generating revenue will face
certain difficulties in keeping up with the challenges brought by the newly formed
system. This matter will only widen the developmental gap. The want of power of each
state may spark disputes between regions which can eventually lead to war.

Philippines is already polarized by language, religion and economic inequality.

Implementing federalism will only deepen the situation. Federalism will make the poor
poorer. With the newly declared tax law (TRAIN), which is still under its implementation
phase, the tax implications of federalism bring more burden to the citizens because it
supports duplicate taxation. Likewise, in the education sector, the free-tuition program
for college students may be terminated for those states that do not have the ability to
generate enough funds to support the program.

The above statements support our strong opposition to the implementation of

federalism. Philippines is not in the best position for a shift in bureaucracy. We believe
that there is more room for improvement in our current government. They should
prioritize its betterment instead of diving into uncertainty and jeopardize the country’s
future economy.