DOF open to returning PhilHealth funds in 2026 if SC orders

Updated Wed, April 2, 2025 at 8:19 PM Published Wed, April 2, 2025 at 7:46 PM

The Department of Finance (DOF) is prepared to include the return of Philippine Health Insurance Corporation (PhilHealth) funds in the 2026 National Expenditure Program if the Supreme Court orders it.

Finance Secretary Ralph Recto stated that a court-ordered return of P60 billion in PhilHealth's idle funds, especially if effective in 2025, would impose fiscal pressure and could prevent the government from achieving its deficit targets and a foreseen credit rating upgrade.

The Supreme Court is currently hearing oral arguments on three petitions challenging the transfer of PhilHealth funds to the national treasury.

A key issue in the arguments is the constitutionality of a special provision in the 2024 General Appropriations Act that allows the use of funds from government-owned and controlled corporations for unprogrammed appropriations.

Recto also disclosed that the Philippine Deposit Insurance Corporation (PDIC) has remitted P104 billion in unused funds to the national treasury.

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