PhilHealth transfers P89B to natl treasury, sparks const. debate

The transfer of funds from PhilHealth to the national treasury has sparked debates over its constitutionality and the government's handling of unprogrammed appropriations.

Lawmakers included a provision allowing the use of GOCC funds for unprogrammed government expenses, leading to a circular by the Department of Finance (DOF) ordering PhilHealth to transfer P89 billion.

Critics argue that this move violates the Universal Health Care law which stipulates that excess funds should be used solely for health-related purposes.

The Solicitor General defended the transfers as necessary due to the ballooning unprogrammed appropriations and the government's cash-strapped situation, but critics point out inefficiencies in PhilHealth’s use of funds and potential misuse of these funds.

Finance Secretary Ralph Recto stated that if the Supreme Court orders the return of the transferred funds, it could impact the 2026 National Expenditure Program and potentially hinder the government's ability to meet its deficit targets for 2025.

The DOF also instructed the Philippine Deposit Insurance Corporation to remit P107.23 billion of its 'excess funds' to the National Treasury, while PhilHealth had transferred a total of P60 billion after a temporary restraining order from the Supreme Court.