Recto defends PhilHealth fund transfer before SC

Finance Secretary Ralph Recto defended the transfer of unused PhilHealth funds and other government-owned corporations' funds into the national treasury during an appearance before the Supreme Court on Wednesday.

Recto argued that this decision is a 'fiscally responsible Bayanihan 3' initiative aimed at easing the national debt burden without imposing new taxes or securing additional loans, emphasizing the economic strain caused by the pandemic and a PHP7.47 trillion increase in national debt by 2022.

The government pledged to adhere to any Supreme Court ruling requiring the return of excess funds transferred from PhilHealth to the national treasury, with Associate Justice Antonio Kho ordering that PHP60 billion out of PHP89.9 billion should be returned and a temporary restraining order blocking the transfer of the remaining PHP29.9 billion.

Recto warned that if the court orders a refund, it could strain government finances and derail deficit targets, potentially impacting the country's credit rating upgrade goals for the next 18 months.

The Supreme Court is set to resume oral arguments on April 3 and may extend proceedings into April 4 if necessary, with a ruling expected following these sessions.