DOF proposes using idle GOCC funds for public projects

The Department of Finance (DOF) proposed that using idle funds from government-owned and controlled corporations (GOCCs) for public projects is a more sensible fiscal approach than increasing borrowings or levying new taxes.

This statement comes after health reform advocates questioned DOF's Memorandum Circular No. 003-2024, which mandated the Philippine Health Insurance Corp. (PhilHealth) to remit PHP89.9 billion in unused government subsidies to the national treasury, citing a violation of the Universal Health Care Law.

The DOF asserted that accessing these dormant funds for crucial projects in health, social services, and infrastructure will not jeopardize the operational capacity or service delivery of the involved government corporations.

Specifically concerning PhilHealth, the DOF pointed out that the corporation possesses a substantial PHP500 billion benefit fund capable of covering claims for several years.

The DOF clarified that the remitted funds for urgent national initiatives are derived from a portion of billions in unutilized national government subsidies, not from member contributions.

Furthermore, the DOF stated that this directive aligns with all legal requirements, including the General Appropriations Act of 2024, which included appropriations exceeding the executive branch's initial proposals.