Treasure trove (2)

Reallocating unused funds of Government-Owned and Controlled Corporations (GOCCs), including PhilHealth, to unprogrammed appropriations is a recent development that adds a new dimension to the funding sources available for government expenditures. Traditionally, excess collections, new taxes, and foreign loans were the primary sources of financing for unprogrammed appropriations.

The inclusion of unused GOCCs funds as a fourth funding source is a shift in budgetary practices and priorities.

The Department of Finance (DoF) secretary, in a letter to PhilHealth president and CEO Emmanuel R. Ledesma Jr. dated 4 April, ordered that the agency’s P89-billion fund balance be remitted within 15 days.

“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,” the letter read, adding that the collection from PhilHealth was approved in a Cabinet meeting on 3 April — the day before the circular was released.

This was just as swift as the provision related to returning unused GOCC funds, which was inserted in the 2024 General Appropriations Act (GAA) during last year’s Bicameral Committee deliberations. As they say, “Mabilis pa sa alas kuatro (in a flash).”

While the return of unused PhilHealth and other GOCC funds for unprogrammed appropriations may present new opportunities for funding government initiatives, it also raises important questions about legality, financial governance, oversight, and accountability.

Republic Act 11223, known as the Universal Health Care (UHC) Act of 2019, defines the allowable uses of PhilHealth funds. According to the UHC Act, surplus funds collected by PhilHealth should be used to increase members’ benefits or to invest in income-generating ventures.

The law, signed by then President Rodrigo R. Duterte on 20 February 2019, sets clear guidelines on how surplus funds should be managed to ensure that they are utilized for the benefit of PhilHealth members and the improvement of healthcare services in the country.

Senator JV Elercito, the principal sponsor and among the co-authors of the bill, had this to say: “Ang pondo para sa kalusugan ay dapat gamitin para sa kalusugan (Health funds should be used for health).”

Given the provisions outlined in the UHC Act, PhilHealth’s surplus funds are limited in their use. The Act restricts the use of these funds to specific purposes aligned with the goals of providing universal healthcare coverage and improving healthcare services in the country.

If a provision in the GAA 2024 conflicts with the guidelines outlined in the UHC Act regarding PhilHealth’s use of surplus funds, it raises questions about the legality and consistency of such provisions.

Generally, laws like the UHC Act provide a framework that should be followed, and any amendments or provisions in subsequent legislation, such as the GAA, should not contradict the provisions of existing laws.

Amending provisions in legislation typically involves going through the appropriate legislative channels, such as the bicameral committee, to ensure that proposed changes are consistent with existing laws and legal frameworks. However, if a provision in the GAA conflicts with the UHC Act, it may require further review and scrutiny to ensure that it complies with its legal requirements and objectives.

Critics who argue that provisions in the GAA cannot override the stipulations of the UHC Act may have valid concerns regarding legal compliance and adherence to established regulations.

Legislators and policymakers, as creators of laws, should set an example by being the first ones to obey the laws they establish. By upholding the principles and objectives of legislation like the UHC Act, they demonstrate their commitment to accountability, fairness, and the rule of law, ensuring the effective implementation of healthcare policies for more than 110 million Filipinos.

We ought to watch for pitfalls and potholes in this controversial return of unused funds. Transparency, accountability, and strict oversight will be the unsung heroes in this high-stakes game. Without them, we risk seeing this treasure trove turned into fool’s gold, slipping through our fingers and leaving us high and dry, and ill.