Part of GOCC funds for Panay-Guimaras-Negros Bridge

By Francis Allan L. Angelo

Finance Secretary Ralph G. Recto has clarified that the Department of Finance (DOF) is following Congress’ directive to utilize idle funds from government-owned and controlled corporations (GOCCs) for unprogrammed appropriations under the General Appropriations Act (GAA) of 2024.

Recto assured that PhilHealth members’ contributions remain untouched and that the reallocated funds will stimulate economic growth and job creation.

Addressing the Senate Committee on Health and Demography, Recto highlighted the legal basis for using unutilized funds from PhilHealth, emphasizing compliance with Republic Act No. 11975.

Recto explained that the DOF, after consulting the Governance Commission for GOCCs, the Government Corporate Counsel, and the Commission on Audit, received favorable opinions confirming that PhilHealth’s PHP 89.9 billion unutilized subsidies are not part of its reserve funds restricted by the Universal Health Care Act.

The reassigned funds will finance significant infrastructure projects, including the Davao City By-Pass Construction Project, the Panay-Guimaras-Negros Island Bridges, and the Metro Manila Subway Project.

These projects are projected to boost GDP growth by 0.7%, generate PHP 23-24.4 billion in revenues, and create hundreds of thousands of jobs.

“Our cost-benefit analysis shows that the projects to be funded by the Unprogrammed Appropriations–na utos ng Kongreso–will hike real GDP growth by 0.7%, increase an additional P23-24.4 billion in revenues, and create hundreds of thousands of jobs,” Recto said.

Recto also warned against the risks of funding these projects through additional borrowings, which would raise the deficit-to-GDP and debt-to-GDP ratios, leading to higher interest payments and potential credit rating downgrades.

He debunked rumors that the funds would be diverted to the Maharlika Investment Fund and confirmed that only PHP 20 billion has been remitted to the Bureau of the Treasury, with PhilHealth maintaining a robust PHP 500 billion benefit chest fund.

“PhilHealth na mismo ang nagsabi na ni isang kusing, walang kaltas sa mga benepisyong matatanggap, batay sa kasalukuyang patakaran. Bagkus, nabanggit pa nga ng Pangulo sa kanyang SONA na tataasan ang mga benepisyo ng PhilHealth,” Recto reiterated.

As discussions for the 2025 National Expenditure Program begin, Recto urged Congress to prioritize projects that maximize economic growth and job creation, while adhering to the Medium Term Fiscal Program aimed at reducing the country’s deficit and debt.

“At the end of the day, my dear honorable members of the Senate, dahil kayo ang may akda ng GAA na pinapatupad namin — magsabi lang po kayo ng inyong mga panukala kung paano popondohan ang mga proyektong nasa pambansang badyet, at handa kaming makinig at sumunod sa inyong utos,” Recto concluded.