BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
Subscribe
BusinessMirror
BusinessMirror
  • News
    • News
    • Top News
    • Regions
    • Nation
    • World
    • Asia Today
  • Business
    • Business
    • Agri-Commodities
    • Asean Economic Community
    • Banking & Finance
    • Companies
    • Economy
    • Entrepreneur
    • Executive Views
    • Export Unlimited
    • Harvard Management Update
    • Monday Morning
    • Mutual Funds
    • Stock Market Outlook
    • The Integrity Initiative
  • Sports
  • Opinion
    • Opinion
    • Columns
    • Editorial
    • Editorial cartoon
  • Life
    • Life
    • Art
    • Design&Space
    • Digital Life
    • Journey
    • Motoring
    • 360° Review
    • Property
    • Show
    • Tech
    • Tourism
    • Y2Z
  • Features
    • Biodiversity
    • Education
    • Envoys & Expats
    • Explainer
    • Faith
    • Green
    • Health & Fitness
    • Mission: PHL
    • Our Time
    • Perspective
    • Photo Gallery
    • Science
    • Today in History
    • Tony&Nick
    • When I Was 25
    • Wine & Dine
  • BMPlus
    • BMPlus
    • SoundStrip
    • Live & In Quarantine
    • Bulletin Board
    • Marketing
    • Public Service
    • CSR
  • The Broader Look
  • Top News

Cost of shifting to federalism only P17.6B: Con-com TWG

  • Bernadette D. Nicolas
  • September 10, 2018
  • 6 views
  • 4 minute read
Total
0
Shares

THE total direct additional cost of shifting to federalism will amount to P17.567 billion, a figure way below earlier estimates by economists and certain groups.

The P17-billion tab was revealed by Wendell Tamayo, head of the technical working group (TWG) of the Consultative Committee (Con-com), in a recent forum.

Tamayo’s estimate on the cost comes more than a week after the Con-com and the Economic Development Cluster met to compare figures on the cost of shift to federalism.

Although there is additional cost, Tamayo stood firm that the government will have savings once the country shifts to federalism.

“The federal government which is very bloated will go on a diet because the regions will transfer functions, personnel, assets and will start to build up their own capacity but based within the cash revenues given to them under the federal system,” he said.

However, he said it is the role of the Department of Budget and Management (DBM) to look into the P17.5 billion additional cost vis-a-vis the savings, even as he noted that collapsing into one the separate electoral tribunals, as proposed by Con-com, will result in savings.

“It is the management side of DBM that will look at how this will evolve and it is the individual agencies who will prepare and assess their own capacities on how they will comply with the constitutional requirements for noncentralization of functions,” Tamayo added.

Con-com’s estimate

Earlier, Con-com said the estimated total incremental cost directly attributed to federalism features would only amount to P13.29 billion, way below what was computed by the National Economic and Development Authority—with estimates as low as P156 billion to as high as P243 billion.

Con-com’s earlier computation of P13.29 billion excludes the computation for additional courts and additional constitutional commissioners since the only ones considered were those directly attributed to federalism features, meaning, those that are necessary for the country to shift to federalism.

Putting up additional courts and additional constitutional commissioners are considered “improvements” of the current setup.

According to a separate  computation made by Tamayo, the P17.5 billion in additional cost already includes the tab for setting up three new high courts and additional commissioners and staff for the constitutional commissions, particularly in the Commission on Audit (COA)and the Federal Ombudsman Commission.

In its proposal, the Con-com is adding two constitutional commissioners who are experts on quality control and management under the Commission on Audit. There will be four additional Associate Ombudsmen for the Federal Ombudsman Commission.

Of the total P17.5 billion in additional cost, P2.807 billion will go to the additional court justices and their staff for the Federal Constitutional Court, Federal Administrative Court and Federal Electoral Tribunal.

In other words, each additional court with nine justices and their staff as proposed by Con-com—in a bid to speed up the resolution of cases—will cost about P900 million each.

Although the Con-com is proposing four new high courts, including the Federal Supreme Court, Tamayo excluded the cost for the Federal Supreme Court since it is not classified as an additional cost, being already in the current setup.

The salaries of additional constitutional commissioners and their staff for the COA and Federal Ombudsman Commission will incur a cost of P1.8 billion.

Although the Con-com is proposing to add the Commission on Human Rights and the Philippine Competition Commission to the list of constitutional commissions, Tamayo excluded these commissions from the computation since these already exist in the present setup.

Besides the COA, the other current constitutional commissions listed in the 1987 Constitution were the Civil Service Commission and the Commission on Elections.

Notably, the bulk of the additional cost of P17 billion will go to the salaries of additional federal legislators (12 senators and 108 congressmen), their staff and the operating expenses of their offices, which will amount to P7.66 billion.

The 15-man Federal Intergovernmental Commission, which will administer the equalization fund for those regions in need, will cost the federal government an additional P300 million, covering the salaries of its appointive members and the group’s operating cost.

Meanwhile, the second-biggest item funded from the P17 billion will go to the direct new cost of having 17 federated regions.

Although Con-com is proposing a total of 18 federated regions, Tamayo excluded from the computation the Bangsamoro region since there is already an existing government for the Autonomous Region in Muslim Mindanao.

Tamayo said P5 billion will be composed of salaries of regional governors and deputy regional governors, estimated operating expenses of offices of the Federal Regional Executive Government (P3.3 billion) and the salaries of Regional Assembly members, their staff and operating expenses of offices (P1.7 billion).

Earlier, the Con-com said it was “willing to reconcile” its position with other government agencies.

Con-com Chairman  and retired Chief Justice Reynato S. Puno told the BusinessMirror they also asked for time to respond in writing to the areas of concern on the draft Charter raised during the Economic Development Cluster meeting.

0
0
0
0
0
0
0
0
Previous Article
  • Top News

SC junks P12-T reward bid of Marcos wealth informer

  • Joel R. San Juan
  • September 10, 2018
Know more
Next Article
  • Top News

PSA data show local, foreign investments shrink 14.8% in H1

  • Cai U. Ordinario
  • September 10, 2018
Know more

Know more

BSP Governor Felipe M. Medalla
Know more
  • 93
  • 2 min
  • Top News

BSP ‘ready’ amid inflation risks

  • Andrea E. San Juan
  • June 7, 2023
Know more
  • 111
  • 3 min
  • Economy
  • Top News
  • Tourism

Tourism players hit choice of Grab ‘guide’

  • Ma. Stella F. Arnaldo
  • June 7, 2023
Know more
  • 110
  • 3 min
  • Top News

UPSE faculty members air ‘grave concerns’ with MIF

  • Jasper Y. Arcalas
  • June 7, 2023
Know more
  • 50
  • 4 min
  • Top News

Lower food, transport costs slow inflation to 6.1%

  • BusinessMirror
  • June 7, 2023
Know more
  • 63
  • 2 min
  • Top News

PHL exports boost seen as PBBM signs PEDP 2023-2028

  • Samuel P. Medenilla
  • June 7, 2023
Know more
  • 47
  • 1 min
  • Top News

As GSP+ pends, DTI pushing FTA talks with EU

  • BusinessMirror
  • June 7, 2023
Philippines-European Union
Know more
  • 32
  • 3 min
  • Economy
  • Top News

PHL spared from Europe’s IP rights watch list for 5th year

  • Andrea E. San Juan
  • June 7, 2023
Bureau of the Treasury building in Intramuros, Manila
Know more
  • 58
  • 1 min
  • Banking & Finance
  • Top News

Investors’ asking rates for Treasury bonds go low

  • Jasper Y. Arcalas
  • June 7, 2023
Know more
  • 34
  • 4 min
  • Entrepreneur
  • Top News

Carmona vendors, drivers now accept QR codes for cashless trade

  • Roderick Abad
  • June 7, 2023
Know more
  • 50
  • 1 min
  • Top News

PBBM welcomes DA tie up with South Korean agri machinery cooperative for mechanization efforts

  • Samuel P. Medenilla
  • June 6, 2023
Know more
  • 83
  • 1 min
  • Top News

PBBM appoints former Sultan Kudarat Governor Suharto Mangudadatu as TESDA Director General

  • Samuel Medenilla
  • June 6, 2023
Know more
  • 43
  • 2 min
  • Top News

NBI files complaint vs MT Princess Empress owners, coast guard personnel, Marina over oil spill

  • Joel R. San Juan
  • June 6, 2023
Know more
  • 42
  • 1 min
  • Top News

DOJ orders Teves to answer multiple murder charges

  • Joel R. San Juan
  • June 6, 2023
Know more
  • 58
  • 1 min
  • Top News

Over 72,000 job vacancies up for grabs in DOLE’s Independence Day job fairs

  • Samuel P. Medenilla
  • June 6, 2023
Know more
  • 39
  • 3 min
  • Nation
  • Top News

Rep. Villar to government: Prepare for El Niño

  • Jovee Marie de la Cruz
  • June 6, 2023
Know more
  • 49
  • 2 min
  • Green
  • Nation
  • Regions
  • Top News

DENR, JICA reaffirm cooperation on management of PHL forestland

  • Jonathan L. Mayuga
  • June 6, 2023
Sugar Regulatory Administration (SRA)
Know more
  • 36
  • 2 min
  • Economy
  • Top News

SRA chief reports ‘significant decline’ in refined sugar production this year

  • Raadee S. Sausa
  • June 6, 2023
Camarines Sur Rep. LRay Villafuerte
Know more
  • 40
  • 3 min
  • Agri-Commodities
  • Economy
  • Green
  • Top News

House resolution seeks to gauge impact of fertilizer use on farmers’ income

  • Jovee Marie de la Cruz
  • June 6, 2023
Know more
  • 30
  • 1 min
  • Economy
  • Regions
  • Top News

Polomolok farmers set sights on agripreneurship

  • Jonathan L. Mayuga
  • June 6, 2023
Know more
  • 43
  • 3 min
  • Top News

DOJ legal opinion: LTFRB has no mandate to apprehend, impound colorum vehicles

  • Joel R. San Juan
  • June 6, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe

BusinessMirror
  • About Us
  • Contact Us
  • Advertise with us
  • Privacy Policy
  • Cookie Policy
  • Podcast
  • Text-Only Homepage

Input your search keywords and press Enter.