DBM bares P203B worth of projects to be funded by excess PhilHealth, GOCCs funds

The Department of Budget and Management (DBM) on Wednesday bared the list of over P200 billion worth of priority programs and projects to be funded by excess funds of state-run corporations amid criticisms of the move to divert idle funds back to the Treasury to finance unprogrammed appropriations.

At the Kapihan sa Manila Bay news forum, Budget Secretary Amenah Pangandaman echoed Finance Secretary Ralph Recto’s defense of diverting government-owned and -controlled corporations (GOCCs) excess funds such as PhilHealth’s P89.9 billion.

“We’re just following what’s in the General Appropriations Act (GAA). We’re just following what’s in the law,” Pangandaman said.

Recto has been saying that the Department of Finance’s (DOF) order to remit excess GOCC funds has legal basis and was only in accordance with the orders of Congress, as provided under 2024 GAA.

The Budget chief said that a provision in this year’s GAA states that the government can tap excess funds from GOCCs to fund unprogrammed appropriations.

In March, the DOF issued Circular No. 003-2024 which directed GOCCs, such as PhilHealth, to remit excess funds back to the Treasury to allow the government to fund unprogrammed appropriations.

Due to the issuance of the circular, the PhilHealth is set to remit P89.9 billion in excess subsidies — P20B billion of which was already remitted as early as the first quarter of the year and was used to fund the more than P27-billion unpaid 5.04 million claims of COVID-19 pandemic era service allowances or health emergency allowances (HEA) of frontliners.

The Philippine Deposit Insurance Corp. (PDIC), meanwhile, will remit about P110 billion — P80 billion of which was already transferred to the Treasury.

Asked what projects and programs will be funded by the excess funds of state-run firms, Pangandaman said, “We identified 11 priority programs and projects.”

“It is worth P203 billion,” she said.

The priority projects and programs under unprogrammed appropriations to be funded by excess GOCC funds are as follows:

• Government counterpart of foreign-assisted projects - P51.7 billion
• Personnel benefits - P27.6 billion
• Public Health Emergency Benefits and Allowances for Health Care and Non-healthcare Workers - P27.7 billion
• NEDA-PSA: Community-Based Monitoring System - P3.6 billion
• Payment of right-of-way - P3 billion
• Maintenance, repair, and rehabilitation of infrastructure facilities (routine maintenance of national roads) - P6 billion
• Proposed Salary Standardization Law VI - P40 billion
• Fiscal support arrearages for Comprehensive Automotive Resurgence Strategy (CARS) Program - P415 million
• Support to Barangay Development Program of NTF-ELCAG - P6.5 billion
• Department of Public Works and Highway’s various projects - P26.6 billion
• Revised Armed Forces of the Philippines Modernization Program - P10 billion

Pangandaman noted that the initial P20 billion remittance from PhilHealth allowed the Budget Department to release the corresponding Special Allotment Order to settle the remaining P27.5-billion HEA of COVID frontliners. 

She added that excess GOCC funds could also be tapped to augment the budget for the salary increase of government workers, which would be retroactive beginning January this year.

On Tuesday, Recto emphasized the need to mobilize unused funds to bankroll priority health, education, and infrastructure programs for the benefit of 115 million Filipinos.

The Philippine Medical Association, Senator Aquilino "Koko" Pimentel III, former Finance undersecretary Cielo Magno, Dr. Ma. Dominga Padilla, and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others, filed a petition with the Supreme Court blocking the transfer of P89.9 billion in excess funds of PhilHealth to the Treasury to fund unprogrammed appropriations this year.

Last week, the High Court ordered several senior government officials to submit their comments to a petition blocking the transfer of excess funds of PhilHealth.—AOL, GMA Integrated News