A Constitution was defined as “a code of rules which aspire to regulate the allocation of

functions, powers, and duties among agencies and offices of the government, and define the
relationship between these offices and the public”. Justice Reynato Puno in his separate opinion
in Republic vs. Sandiganbayan (G.R. No. 104768, 21 July 2003) cites political theories on the
social contract which serves as the basis for the establishment of civil society and the framework
of the political government. Corollarily, this framework of a political government and the
structure of Philippine society necessarily emanates from the will of the people as reflected under
the 1987 Constitution.

Under the 1987 Constitution, the Philippines adopts a unitary form of government with a central
government exercising most of the powers of the State. Yet, the Constitution also provides for a
system granting local autonomy to local government units. This co-existence of a central
government and local government units under the current Constitution categorizes the current
system between a purely unitary form of government and a purely federal form of government.
The proposed Charter effectively moves the existing system towards a fully federal system; a
movement considered possible by the 1986 Constitutional Commission. The Commission
considered the possibility of “full federalization” to the extent that the establishment of
autonomous regions in Muslim Mindanao and the Cordilleras was envisioned to serve as models
for such system of government.

A major consideration in the proposed Federal Constitution is the fiscal independence of

federated regions. The proposed Charter expands the powers of taxation of federated regions by
adding taxes which the regions may collect. Notably, most national taxes in the current system
are transferred to the regions under the proposed Constitution, directly augmenting their income
and reducing the dependence from national disbursements. In addition, the federated regions are
also entitled to receive a fifty percent (50%) share to be equally divided among them from the
national taxes. Presumably, these fiscal reforms are put forth to address the inefficiencies and
problems encountered by local government units under the prevailing governmental framework.

However, it was emphasized that there seems to be an imbalance between the fiscal
augmentation provided by the proposed charter and the shift of powers between the federal
government and the federated states. Notwithstanding the increase in fiscal autonomy, the
federated states exercise less duties and responsibilities that the federal government who still
retains most of the burden – a situation incongruent with the idea that the funds must follow the
function. In addition, it also brings into thought that such economic and fiscal adjustments may
only require revisions of the local government code and the national internal revenue code under
the existing framework. Such avenue would strengthen the fiscal capacity of local governments
without need to revise the Constitution which would require more time and resources.

Federalism can both create and resolve conflict. A shift from a unitary form of government to a
federal form of government not only affects the framework and structure of government but to a
degree affects how we as Filipinos view each other as part of a shared community. The
Constitution being the supreme law of the land, great care and diligence must be exercised in
proposing changes, revisions, and amendments, taking into consideration the Philippine society
as a whole and not simply as a means to address issues which can be resolved through other
means. Rigorous discourse must be undertaken, and proper education must be made to ensure
that the Constitution would truly reflect the will of the sovereign.