THE Department of Finance (DoF) said P89.9 billion in “idle funds” returned to the Treasury by the Philippine Health Insurance Corp. (PhilHealth) will be used for infrastructure and other social programs.
“That is the farthest from the truth,” Finance Secretary Ralph G. Recto told a forum on Wednesday, referring to allegations that the PhilHealth funds are a form of “pork barrel.”
“Unprogrammed funds are not pork barrel, most of them will be used for foreign assisted projects, international commitments,” he said.
Pork barrel refers to the traditional Congressional practice, since declared illegal by the Supreme Court, of allocating government projects and funding in such a way as to win favor from voters.
The administration has instructed government-owned and -controlled corporations (GOCCs) to remit funds deemed idle to the Treasury, raising fears that the President will have his own war chest to distribute to supporters.
Mr. Recto noted that the unprogrammed funds will help support several foreign-assisted projects including the Bataan-Cavite Interlink Bridge, the Metro Manila Subway, the Panay-Guimaras-Negros Island bridges, the Davao City Bypass, and the Salary Standardization VI for government employees.
The funds will also support the North-South Commuter Railway System, the Philippine National Railways South Long Haul line, and other big-ticket infrastructure works.
It will also help fund the Support to Parcelization of Lands for Individual Titling program and the Philippine Fisheries and Coastal Resiliency project.
Other programs to be funded are the Philippine Multi-Sectoral Nutrition project, Supporting Innovation in the Philippine Technical and Vocational Education and Training System, the Mindanao Inclusive Agriculture Development project, the Philippine Rural Development project, and other development initiatives.
In Circular 003-2024, the DoF asked PhilHealth and the Philippine Deposit Insurance Corp. to remit unutilized funds worth P89.9 billion and P110 billion to the Treasury.
Mr. Recto has said that the fund transfers were legal and conducted after consulting the Governance Commission for GOCCs, Office of the Government Corporate Counsel, and the Commission on Audit.
He also noted that the remitted funds include a portion of the government subsidy to GOCCs and not from PhilHealth members’ contributions.
In a Senate hearing last week, Mr. Recto said projects funded by unprogrammed appropriations will increase gross domestic product growth by 0.7%, provide up to P24.4 billion in additional revenue, and create jobs.
Meanwhile, Mr. Recto said he would prefer better health benefit packages and to reduce PhilHealth members’ out-of-pocket expenses, but said he would leave it to its board to cut premium contributions if deemed necessary.
Republic Act No. 11223 or the Universal Health Care Act authorizes a yearly increase of PhilHealth members’ contributions until 2025. — Beatriz Marie D. Cruz
