Recto: Transfer of PhilHealth and GOCC Funds Follows Congressional Mandate

MANILA, Philippines — Finance Secretary Ralph Recto clarified that the transfer of funds from the Philippine Health Insurance Corp. (PhilHealth) and other government-owned and controlled corporations (GOCCs) is in compliance with an order from Congress.

During the Senate health panel hearing on Tuesday, Recto explained that the Department of Finance is following directives set forth in the General Appropriations Act (GAA) of 2024.

“To fund the unprogrammed appropriations, Congress identified an alternative to new taxes and debts by collecting dormant and unused funds from GOCCs, on which we still pay interest. This directive is explicitly stated in the 2024 GAA, and we are strictly adhering to it,” Recto stated.

Additionally, Recto assured the public that the transferred funds would be used for other significant projects, including:

- The Davao City By-Pass Construction Project

- Samal Island-Davao City Connector Project

- Panay-Guimaras-Negros Island Bridges

- Bataan-Cavite Interlink Bridge Project

- Metro Manila Subway Project

- The Salary Standardization VI for government employees

In the same hearing, Recto emphasized that the benefits and contributions of PhilHealth members would remain unaffected.

He also highlighted that utilizing these excess funds would “create more jobs and accelerate the country’s economic growth.”

“This decision was made after consultations with experts. The legal advice we received supports this action, which not only adheres to the law but also promotes economic growth and job creation,” Recto concluded.