Equalization fund to curb poverty in federal gov’t, says former senator

TACLOBAN CITY, Sept. 16 (PNA) –- Poor regions like Eastern Visayas will greatly benefit from the federal form of government with the creation of equalization fund, said staunch federalism advocate, former Senator Aquilino "Nene" Pimentel, Jr.

Pimentel, who was in the city Friday for a federalism forum, said the fund is patterned after World Bank and International Monetary Fund. The financial institution will provide loans to poor areas for development project.

He said the equalization fund, administered by the federal government will be made available to economically-depressed states.

“Resources for this equalization fund will come from the central government and the more developed states. All federal states will be represented in managing the fund,” the former senate president said

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Under Pimentel’s proposal, the new form of government will have 12 federal states – five in Luzon, four in Visayas, and three in Mindanao. Metro Manila will be converted into a federal administrative region.

These states are Northern Luzon, Central Luzon, Southern Tagalog, Bicol, and Cordillera for Luzon; Eastern Visayas, Central Visayas, Western Visayas, and Minparom, covering Mindoro Oriental and Mindoro Occidental, Palawan and the Kalayaan Islands, Romblon, Marinduque for Visayas; 

Northwestern and Northeastern Mindanao, Southern Mindanao, and Bangsamoro for Mindanao.

Cordillera was added to the list of proposed states after Pimentel recently held a forum in Baguio City.

“We are not copying any model from other countries. We will only pick the good features and come up with something that is suitable for the Philippines,” Pimentel added.

Pimentel proposed that federal states get to use 80 percent of their revenues and remit only 20 percent to the central government.

When it comes to government administrators, every federal state shall be represented by six senators, who are elected by registered voters in a nationwide free elections.

Aside from a total of 77 senators from the country’s 12 states, there will also be six senators that shall represent Metro Manila and nine overseas senators.

In addition, every federal state will have its own set of departments which are counterpart of the current government’s national departments.

“During the first two to three years of the Duterte administration is the adoption of federal system. The next three years is transition period towards the adoption of federal system,” he explained.

The Department of the Interior and Local Government (DILG), together with the provincial government of Leyte has gathered all local officials of the province and this city into a forum on federalism.

The information drive on Friday was held at the Leyte Academic Center Gymnasium in nearby Palo town with Pimentel as the forum’s keynote.

The forum has gathered thousand of key provincial officials headed by Governor Leopoldo Dominico Petilla, provincial board members, city and municipal mayors, vice mayors, councilors, DILG field officers, as well as selected village chiefs, student leaders, church, business and civil society leaders in Leyte. (PNA)
JMC/SARWELL Q. MENIANO