GOCCs’ unused funds could expand the economy or the country’s gross domestic product by 0.7 percent as national funds for various projects increase by P23 to P24.4 billion. This, DoF chief Ralph Recto said, means additional jobs to Filipinos to help complete projects and operate related industries
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Department of Finance (DoF) Secretary Ralph Recto on Tuesday stressed unused funds from government-owned and controlled corporations (GOCCs) will be used to implement health and infrastructure projects.
Recto said this to the Senate Committee on Health and Demography, reiterating that the transfer of idle funds to the national government from GOCCs like the Philippine Health Insurance Corp. (PhilHealth) is legal.
However, he said fake news about this matter has been circulating on social media.
Recto said the fund transfers to the national government comply with Republic Act 11975 or the General Appropriations Act 2024.
He added that the DoF consulted with the legal advisors of the GOCCs about this matter.
“In the case of PhilHealth, unused government subsidies are not part of its reserve funds, nor income that is being restricted by the Universal Health Care Act to be used by the national government as a general fund,” he said.
Social media
Recto clarified social media posts that the P89.9 billion in total remittance from PhilHealth is not being directed to health projects. He said a portion worth P20 billion already remitted to the Bureau of the Treasury was used to pay allowances of Covid medical frontliners.
He shared that this helped fulfill 5.04 million claims amounting to P27.5 billion. Recto added P121.3 billion has been paid to frontliners.
Recto said PhilHealth still keeps P500 billion under its active funds which it can use for expanded benefit packages to members over multiple years.
“President Ferdinand Marcos Jr. even said in his recent State of the Nation Address that PhilHealth will increase benefits for outpatients, cancer patients, and children with disabilities,” he said.
Tranches
Thus, Recto also refuted social media posts that PhilHealth will remit the P89.9 billion all at once. He said the remittance will be by tranches to ensure efficient cash management operations by the Treasury.
Aside from health projects, Recto said the national government will use idle funds from other GOCCs to implement the Davao City By-Pass Construction Project, Samal Island Davao City Connector Project, Panay-Guimaras-Negros Island Bridges Project, Bataan-Cavite Interlink Bridge Project, and Metro Manila Subway Project.
He said total funds for these projects and other similar ones amount to P203.1 billion.
The funding complies with the rules on Unprogrammed Appropriations under the General Appropriations Act 2024.
“To fund the unprogrammed appropriations, Congress determined that there is another way aside from new taxes as well as debts,” Recto said.
Economic growth
Recto said the unused funds from GOCCs could expand the economy or the country’s gross domestic product by 0.7 percent as the national funds for various projects increase by P23 to P24.4 billion.
He added this means additional jobs to Filipinos to help complete the projects and operate related industries.
