Press Release
August 12, 2018

Dominguez, econ team "indespensible, integral" to federalism talks--Recto

The country's economic managers are "integral and indispensable to the national conversation" on federalism, Senate President Pro Tempore Ralph Recto said.

"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.

"In the case of Finance Secretary Dominguez, he must raise P10 billion a day to finance the operations, the programs of this government. And collecting this P10 billion daily quota from the people is a thankless job," Recto said.

"Kaya pag sinabi ng Finance Secretary na teka tingnan natin kung magkano gastos, pakinggan natin sya. Maaring mali sya, pero it is to our benefit that we must listen to him," he said.

Recto said every proposal, like federalism, should undergo a fiscal responsibility check. "Parang may four-way test. What is the cost to implement it? Do we have the money for it? Do we have to raise tax or impose fees or create savings or borrow money? What is the per capita burden it will impose?"

"Lalo na ngayon, our debt needle is moving up. Siyempre pag may gastusin, tanungin natin ang mga tao na may hawak ng kaha ng gobyerno," he said.

"Running the numbers is a politics-free exercise. You cannot bend it to suit one's position. If it is financing federalism, then the results of the studies and simulations should be the basis of how to move forward," Recto said.

News Latest News Feed