Finance Secretary Ralph Recto said on Tuesday, July 23 that the Department of Finance’s (DOF) circular ordering the remittance of unused PhilHealth funds was in line with the 2024 budget and would boost the economy.
During the Post-SONA Discussions in Pasay City, Recto clarified that the move was based on a congressional directive to use dormant funds from government-owned and controlled corporations (GOCCs).
He said an assessment revealed that PhilHealth alone has around P89.9 billion in idle funds, while the entire government holds at least P200 billion in such assets.
“We found that utilizing these funds for priority unprogrammed funds could help the country’s economy, potentially increasing growth by around 0.8 percent,” Recto said. “This could also create over 600,000 jobs,” Recto added.
The finance chief emphasized that the legality of the action was confirmed by the Governance Commission for Government-Owned and Controlled Corporations (GCG), the Office of the Government Corporate Counsel (OGCC), and the Commission on Audit (COA).
Recto assured the public that PhilHealth’s health programs will not be affected, citing the over P500 billion remaining in the state health insurer’s coffers.
“In fact, the President mentioned in his SONA yesterday that they are even being expanded,” Recto added.
When asked about the possibility of other GOCCs with idle funds, Recto said that while there might be some, the amounts are not significant.
“Therefore, (Budget Secretary Amenah Pangandaman) and I do not expect the unprogrammed funds to increase next year,” he said.
Last April 24, Recto sent a letter to PhilHealth President and CEO Emmanuel Ledesma, Jr., instructing him to transfer the fund balance to the national government within 15 days of receiving the letter.
The P89 billion would be allocated to unprogrammed items in the 2024 national budget, implying that these projects will only move forward if excess funds are available.
“PhilHealth’s substantial contribution will support the funding of priority infrastructure and social projects of the national government in ensuring the nation’s economic growth and development,” Recto’s letter read. (TCSP)
