‘Listen to economic managers on Fed‘

Those who raise revenues and manage the economy “can provide a reality check if a proposal is financially feasible and fundable

Senate President Pro Tempore Ralph Recto on Sunday said the legislators should listen to the inputs of the economic managers on the proposed shift to federalism because, after all, these are the people who finance the new system of government.

Recto said Finance Secretary Carlos Dominguez III is responsible for generating an estimated P10 billion a day to finance the operations and programs of the government.

“And collecting this P10 billion daily quota from the people is a thankless job,” he said.

“So when the Finance Secretary said, ‘wait, let us look at the cost [of the transition],’ we must hear him out. He could be wrong, but it would be to our benefit that we must listen to him” he added.

He explained the economic managers are “integral and indispensable to the national conversation” on federalism. “You don’t shut them out of the discussions; you bring them in because the cost of federalism is front and center of the issue,” Recto said.

Recto said those who raise revenues and manage the economy “can provide a reality check if a proposal is financially feasible and fundable.”

“Before we communicate what federalism is, can we not first calculate what its cost will be?” he added.

“Every proposal has a cost. Scratch the surface of every provision of a bill and there is a price tag underneath. We are often told the benefits of a project but not the price,” he said.

While he himself does not often see eye to eye with the views of the economic managers on many issues, “I listen to them, value their views and appreciate where they’re coming from.”

“Because at the end of the day, it is they who will raise the revenues in implementing proposals we politicians love to sponsor,” Recto said.

Recto said every proposal, like federalism, should undergo a fiscal responsibility check. He suggested a “four-way test” like the cost to implement it; the money; or if government has to tax, impose fees, create savings or borrow the money; or the per capita burden it will impose on Filipinos taxpayers.

He explained the economic managers are “integral and indispensable to the national conversation” on federalism.

Recto said the tests are more important now that the national debt is going up. He added more expenses are required, it would be prudent to ask those who are managing the nation’s coffers.

He added the results of the studies to finance federalism should be key to moving forward with the proposal.