An article published in the July 26, 2018 issue of BusinessWorld shows an indicator of preparedness of the country’s regions in light of the current administration’s cornerstone of shifting the form of government to federalism. Since the federal form of government grants fiscal autonomy to local governments, some economic experts are concerned that some regions may be ill-prepared for such autonomy. A region’s self-sufficiency is indicated by its reliance on Internal Revenue Allotment (IRA) - the local government unit’s (LGUs) share of the national government’s revenue.

In the infographics below, the 2017 Total Current Operating Income of the country’s regions and their corresponding percentages that comes from the IRA are indicated. It is said that regions least dependent on IRA could be the only ones capable of sustaining their basic operations if federalism pushes through.

The National Capital Region is least dependent among the regions with 20.21% of its Total Current Operating Income coming from the IRA. It is followed by Region IV-A (CALABARZON) with 56.69% and Region III (CENTRAL LUZON) with 64.26%. The region with highest dependence on the IRA is ARMM (Autonomous Region in Muslim Mindanao) with 95.64%, followed by Region IX (Zamboanga Peninsula) with 84.45% and Region IV-B (MIMAROPA) with 84.44%. (Source: Department of Finance-Bureau of Local Government Finance; BusinessWorld)

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