LATEST PUBLICATIONS
DRN Vol. 39 No.3
'Reexamine SHS Programs Employment and Entrepreneurial Objectives'
WP-2012-07
Regulatory Impact Assessment Adoption Determinants: A Diagnostic Framework
WP-2012-06
Exploring Responses to the Employment Impact of Excise Tax Reform: The Case of the Philippine Tobacco Industry
WP-2012-05
Mapping Out Employment Opportunities in the Cultural Heritage Sector A Strategic Framework

LATEST AV MATERIALS
PIDS WB 2021-0905
Annual Public Policy Conference Webinar 4: Robust and Healthy Workforce and Closing Program
PIDS WB 2021-0904
Annual Public Policy Conference Webinar 3: Green And Inclusive Recovery
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
Publication Detail
DP 2017-56: Designing the Fiscal Features of a Federal Form of Government: Autonomy, Accountability, and Equity Considerations

The adoption of a federal form of government was a key campaign promise of President Rodrigo Duterte, a thrust reiterated in his first State of the Nation Address in 2016. It has strong support among the members of the super majority at the House of Representatives, being part and parcel of proposed constitutional amendments that are currently being deliberated by the Committee on Constitutional Amendments. The federalism discourse in the public arena is oftentimes framed along two strands. First, the adoption of a federal form of government is seen as a means to reverse the unequal allocation of resources between what critics call 'imperial Manila' and the rest of the country. Second, advocates view the shift as key to attaining sustainable peace in Mindanao given its potential to secure national unity while protecting regional diversity. The discussion arising from both strands highlights the fact that there is no single federal model, and that the federal model may or may not work in the Philippine context depending on the specific design features of the particular model that is proposed. Given this perspective, this paper focuses on the design options of the fiscal elements of a federal model that will help ensure the realization of potential benefits from adopting a federal system of government.

The paper discusses possible design options along the four pillars of intergovernmental relations: (i) functional or expenditure assignment, (ii) tax/revenue assignment, (iii) intergovernmental transfers, and (iv) subnational government borrowing. These principles are aimed at ensuring that the federal government and subnational governments face the right incentives for efficient and equitable delivery of public services and enhancing accountability of subnational governments to their constituents. The discussion of the same is contextualized by lessons from the country's past decentralization experience under the Local Government Code of 1991. The paper also provides estimates of the cost of shifting to a federal form of government under different scenarios in terms of the number of regions. Finally, it concludes with the discussion of why adopting a federal form of government should take into account not only the net benefits of the reform, but also the preconditions for its success.



Philippine Institute for Development Studies
Authors Keywords
Manasan, Rosario G.; Philippines; decentralization; expenditure assignment; equalization transfers; federal government; fiscal autonomy; intergovernmental transfers; political dynasties; political turncoatism; tax assignment; unitary government; vertical fiscal gap; vertical fiscal imbalance;
Download PDF Number of Downloads
Published in 2017 and available in the PIDS Library or Downloaded 882 times since January 04, 2018
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.