MANILA - Finance Secretary Carlos Dominguez on Friday called for further dialogue on federalism to discuss "ambiguous" provisions that could have "dire, irreversible economic consequences."
Dominguez earlier told lawmakers that he was "absolutely" against the proposed federal charter from a Palace-backed committee due to unclear provisions on revenue and expenditure assignments.
"As we pointed out earlier, we never stated that we are against federalism," Dominguez said in a statement.
"Rather, with respect to the fiscal provisions of the proposed Constitution, there are ambiguous provisions on revenue assignment and there are no provisions on expenditure assignment," he said.
There should be a discussion on the consultative committee's draft constitution "so that it is clear and unambiguous," he said.
Citing fiscal provisions of the draft charter, Dominguez said the country risked bloating the budget deficit, which could lead to a credit rating downgrade.
The government, if it adopts the consultative committee draft, will need to cut spending by P560 billion to avoid "negative economic consequences," he said.
"This means the national government may have to lay off 95 percent of its employees, or reduce the funds for the 'Build Build Build' program by 70 percent, or a combination of both," he said.