House Appropriations Committee Chairman Rep. Zaldy Co (Ako Bicol Party-list) has endorsed a move by the Department of Finance (DOF) to tap billions of pesos in unused government-owned and controlled corporations (GOCC) funds to help agencies like Philhealth deliver much needed health and social services and other crucial public sector projects.
“This initiative will re-channel billions of dormant funds to help millions of Filipinos enjoy better healthcare and social services, and bolster economic activity by investing more in social services and infrastructure projects at no extra cost to the government,” said Co, whose committee is completing preparations to submit the 2025 National Expenditure Program.
The Department of Finance said the redirection of idle GOCC funds for public interest projects alleviating poverty and fostering economic growth is allowed under the 2024 General Appropriations Act.
As an example, the DOF has identified the P500-billion reserve of the Philippine Health Insurance Corp. as among those that could be reallocated under strict legal guidelines without affecting PhilHealth operations.
The use of PhilHealth reserves for other projects has been approved by the boards of entities like PhilHealth and the Philippine Deposit Insurance Corp. Co stressed that the funds being transferred to the treasury are excess GOCC funds.
“These are not derived from member contributions but are, in fact, unutilized funds provided by the national government. It is essential to understand that these funds are distinct and separate from any contributions made by Philhealth members and are meant to be used for the country’s development” he said.
“Congress has done its part in its exercise of oversight functions on the national budget, with respect to PhilHealth subsidies,” said Co.
“Notwithstanding actions by Congress, huge amounts of stranded funds in PhilHealth exist and it would be a great injustice to Filipinos if these funds remain unused.”
The appropriations committee chairman said since the PhilHealth reserve fund came from the government, it is only proper to reinvest them to benefit more people instead of just leaving them idle. “I must point out, however, that only excess funds must be reallocated, nothing more,” he added.
Rep. Co said putting these dormant funds to better use will lessen the pressure on the government to borrow more and Congress to pass new tax measures.
“This will widen the scope for the private sector to source more funds from the capital market as well as free up more funds for investments instead of using them to pay taxes. All things being equal, it should be a positive development for the economy and for efforts to create more jobs,” Co said.
Among the projects that may benefit from the reallocation of GOCC funds include the Metro Manila Subway Project and social programs such as the Teacher Effectiveness and Competencies Enhancement Project.
Co said Congress won’t interpose any objection to the DOF plan, which underscores the commitment of the administration of President Ferdinand Marcos Jr. to efficient resource management and prioritizing public welfare through targeted investments in critical sectors.
