Recto: Tapping unutilized funds will significantly boost economic growth

Tapping unutilized funds for unprogrammed projects such as those under the Philippine Health Insurance Corp. (PhilHealth) will significantly boost the country’s economy and help achieve the government’s target range, Finance Secretary Ralph Recto said Tuesday.

According to Recto, the DOF conducted a cost-benefit analysis of using unutilized funds, and this showed that it would be better to tap such funds for key projects.

“Sa ngayon, [For now] if you implement the unprogrammed, the study I saw is at least a potential increase of 0.8 (percent) of GDP (gross domestic product) and creation of roughly 600,000 jobs direct and indirect,” he said.

“It is significant to achieve hopefully a 6.5% growth rate,” he told reporters in an interview on the sidelines of the Post SONA (State of the Nation Address) in Pasay City, as the government targets a 6.0% to 7.0% range this year.

The DOF last week defended the utilization of unused and idle funds of government corporations, as it said this was “more prudent” than borrowing or imposing taxes to finance projects.

According to Recto, the DOF was acting on orders of Congress, and it consulted the Governance Commission for GOCCs (GCG), the Office of the Government Corporate Counsel (OGCC), and the Commission on Audit (COA) which all said such moves were in line with the law.

“Sa aming pagsisiyasat, napakahalaga na magamit din ‘yung unprogrammed fund dahil dun din nakapaloob ‘yung halimbawa, foreign assisted projects ng Pangulo (In our study, it is very important to use the unprogrammed fund because this covers, for example, foreign assisted projects of the President),” he said in the same interview.

“Kung hindi natin gagawin, made-delay, magkakaroon ng opportunity costs ‘yan, magkakaroon rin ng interest na binabayaran kahit hindi natin napapakinabangan ‘yung mga project, so on so forth, at marami pang iba,” he added.

(If we do not do this, there will be delays, there will be opportunity costs, there will be interest paid even if we do not benefit from the projects, so on so forth, and there are many more.)

Stakeholders earlier called on some P89.9 billion in excess funds of the Philippine Health Insurance Corp. (PhilHealth), which were then diverted to fund appropriations this year.

Recto said that out of the fund, only some P20 billion has been transmitted to the national treasury, and that the rest of the amount will be released on a staggered basis as provided for in the resolution of the agency’s board.

“Meron tayong schedule ng pagtanggap ng pondo niyan kung sakasakali. Meron rin tayong schedule ng pagtanggap sa PDIC (Philippine Deposit Insurance Corp.) to be able to finance, so hindi one time big time ‘yan. That’s for the rest of the year,” he said.

“We have six more months bago makolekta ‘yan and like I said, sa aming pagsisiyasat din palagay ko ng kongreso, natutulog lang ‘yung pera sa PhilHealth, hindi nagagamit,” he added.

(We have a schedule of receiving the funds if ever. We also have a schedule of receiving from PDIC to be able to finance, so this is not one time big time. We have six more months before this is collected and like I said, in our studies and I think in the studies of Congress, the funds are just sleeping with PhilHealth, unused.)

Recto said there are some P117 billion of unused funds with PDIC, which would equate to a combined estimate of P200 billion when added with those of PhilHealth.

“Tama ba na natutulog lang ‘yung pondong ‘yan or pwedeng gamitin natin for national development, sa dami ng expenditure needs that 115 million Filipinos need or desire,” he said.

(Is it right that the funds are just sleeping, or we can use them for national development, with the large expenditure needs that 115 million Filipinos need or desire.) — RSJ, GMA Integrated News