The exchanges between members of the Consultative Committee (ConCom) tasked to review the 1987 Constitution and economic managers should have been best conducted among themselves and not through a media blitz which is now being seized by the yellow mob as a golden opportunity for its cause.
On social media, for instance, one of the yellow kingpins hailed Finance Secretary Carlos Dominguez III for having “doubled down” on his opposition to the draft federal constitution.
Dominguez’s statement clearly indicated otherwise as he voiced the economic team’s view that it is not against Federalism but merely needed the “opening of more discussions” on the ambiguous provisions of the draft federal constitution.
By driving a wedge between the economic managers and the ConCom, the usual critics are hoping to strike at President Rody Duterte’s core achievements which are sustaining a robust economy and his committed drive towards a Federal state.
The yellow opponents of Rody are experts in spinning problems confronting Filipinos as being the result of Rody’s reform policies.
For instance, the slowdown in economic growth in the second quarter is being blamed on inflation which in turn was supposedly caused by the added taxes imposed under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Also cited for the weaker growth was the six-month closure of main tourist attraction Boracay Island.
Both camps may have raised valid points which can be taken up without the need for a confrontation.
Dominguez speaking for the economic team said the draft charter was not clear about the allocation of expenditures for the federal government and the federated regions.
He said the chief concern of economic managers are the possible “dire, irreversible economic consequences” of the stipulations in the draft charter.
The economic managers fear a repeat of the Supreme Court (SC) decision on Batangas Gov. Hermilando Mandanas’ petition on the Internal Revenue Allotment definition that the SC ruled should include all taxes collected from other government agencies and not only from the Bureau of Internal Revenue.
The ruling resulted in an P800 billion hole in the budget that Dominguez and economic managers fear will be magnified under the draft federal charter.
The federal shift allows greater fiscal autonomy to local governments to bankroll their own projects but, according to the economic managers, is silent on the funding source for the exercise of these powers.
Some members of the ConCom, particularly Fr. Ranhilio Aquino, even sought Rody’s dismissal of Dominguez and Socioeconomic Planning Secretary Ernesto Pernia for stating their views.
Rody had made clear earlier that the economic domain is best left to his managers and he will not interfere on them.
Dominguez said the unclear fiscal provisions may result in a budget deficit blowout to about 6.7 percent of gross domestic product.
What may follow is a credit rating downgrade that would hit hard the funding for the massive infrastructure program that averages P1.5 trillion in expenditures a year.
A credit rating downgrade would lead to higher interest rates, Dominguez said.
The ConCom members, however, said during discussions on the economic provisions, Cabinet secretaries merely sent their “lieutenants” that made the participation of economic managers sorely lacking at crucial points of drafting the charter.
Rody said despite the draft that the ConCom submitted, the federal charter remains a work in progress and that Congress will determine its final form.
The economic managers and the ConCom can better use their energy in contributing to the improvement of the draft charter in both chambers of Congress rather than engaging in a media catfight that weakens public opinion on the Federal shift.
After the vulgar social media disaster on Federalism, a bitter feud among officials that he relies on would be the last thing that Rody needed.
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