July 16, 2024 - The Philippine government announced a plan to redirect billions of pesos in unused and idle funds from government-owned and controlled corporations (GOCCs) towards crucial public projects in health, social services, and infrastructure. This initiative aims to improve public well-being, stimulate economic growth, and reduce poverty.
Officials highlighted the benefits of utilizing these excess funds compared to traditional methods like raising taxes or increasing national debt. They emphasized that this approach wouldn't affect the operations or financial health of the involved GOCCs.
As an example, the Philippine Health Insurance Corporation (PhilHealth) maintains a P500 billion benefit chest, sufficient to cover claims for several years. The redirected funds specifically come from unutilized national government subsidies, not member contributions mandated by the Universal Health Care Act.
This strategy has already proven effective. Remittances from PhilHealth and other GOCCs allowed the Department of Budget and Management (DBM) to allocate P27.5 billion for settling Covid-era service allowances for over 5 million frontliners.
The process ensures adherence to legal guidelines, including those outlined by the Office of the Government Corporate Counsel (OGCC). Additionally, the return of these unused funds was approved by the respective boards of PhilHealth and other participating GOCCs.
The redirected funds will be distributed based on the national budget, supporting ongoing projects like the Metro Manila Subway and various railway systems. These investments aim to improve infrastructure and connectivity across the country.
Other programs set to benefit include land titling initiatives, fisheries and coastal resiliency projects, and programs focused on nutrition, education, and agricultural development. Additionally, the funds will support data gathering efforts by the Philippine Statistics Authority and the Department of Trade and Industry's CARS Program for the automotive industry.
This approach resembles the "Bayanihan" strategy used during the Covid-19 pandemic, where the government tapped into GOCC resources to fight the crisis.
"We cannot afford to have excess money sleeping in our GOCCs while withholding the same funds from public investment," the statement said. "Hibernating funds can help the nation without harming government corporations."
The Department of Finance (DOF) stands firm on its commitment to sound fiscal management, prioritizing the efficient allocation of government resources for the betterment of Filipino citizens.