MANILA -- Congressman-elect Pantaleon "Bebot" Alvarez of Davao del Norte has shed more light on federal type of government that might be formed under presumptive president Rodrigo Duterte's administration.

Duterte has been vocal in his belief that federalism can help end the fighting in parts of Mindanao.

In an interview with DZMM on Friday, Alvarez said that under a federal form of government, each state has its own discretion in managing its economy, natural resources, and law.

"Talagang hindi lang autonomy kundi they manage their own economy, they manage their own natural resources, meron silang sariling mga batas, kaya lang kailangan 'yung batas nila is kailangan sang-ayon din dun sa kanilang Constitution," Alvarez explained.

In the country's current form of government, all funds are centralized in Manila and provinces need to remit their income in the National Treasury.

The national government also distributes and allocates the budget for each province.

Meanwhile, in the federal form of government, a state will no longer remit its income to the national government. However, they have to give a small percentage of their income as a contribution to the national government.

The percentage of income to be given to the national government will be determined in the Constitution that will be drafted if federalism will push through.

"'Yung income ng mga probinsya, ay maiiwan sa probinsya at saka magbibigay na lang 'yan ng contribution sa national government. Let's say 20%, 25%, 15%. Depende po 'yon sa magiging words nung constitution natin na babaguhin," Alvarez said.

Alvarez added that the national government will no longer need a large budget under a federal government since each state will have their own taxation.

"Hindi na rin kailangan na national government ng malaking budget kasi ang maiiwan na lang diyan, national defense, foreign affair, basically 'yun na lang ang maiiwan diyan," Alvarez reasoned.

Alvarez also warned that in the current form of government, funds might be unevenly distributed especially if a certain region's official is not allied with the national government.

"Halimbawa kahit na malaki ang contribution ng isang region sa national pero kung hindi naman malapit doon sa presidente, wala ring mangyayari, Kokonti pa rin 'yung pumupunta sa kaniya. Tapos kung halimbawa hindi ka rin sumang-ayon doon sa gusto ng administrasyon, pwede ho kayong ihostage eh. Hindi ka rerelease-an ng pondo kahit entitled ka doon," Alvarez said.