Gov't to return PhilHealth's P60-B funds if ordered by SC

Finance Secretary Ralph G. Recto on Wednesday, April 2, said the government is willing to return to the Philippine Health Insurance Corporation (PhilHealth) its P60-billion idle funds that had been turned over to the national treasury if ordered by the Supreme Court (SC).

- By REY PANALIGAN

"Naturally, if the Supreme Court were to tell the Executive to return the money, we will include that in the national expenditure program for 2026," Recto said during the oral argument on the three petitions challenging the transfer of used PhilHealth funds to the National Treasury. "But having said that, assuming if the ruling were for 2025, that will add a fiscal pressure to our deficit and that would entail us not hitting our deficit target this year and if we miss that we may not attain our coveted credit rating upgrade that we foresee in the next 18 months." Recto, however, cautioned against the economic repercussions should the High Court order the return of the funds this year.

He also disclosed that only the PhilHealth and the Philippine Deposit Insurance Corporation (PDIC) have remitted unused funds to the national treasury amounting to P60 billion and P104 billion, respectively.

At the same time, Recto told the SC justices led by Chief Justice Alexander G. Gesmundo that the 2024 General Appropriations Act (GAA) allowed the taking of the idle funds of GOCCS (government-owned and -controlled corporations) to raise more resources to support President Marcos' priority programs as part of the government's economic recovery efforts after the Covid-19 pandemic.

He said that when President Marcos assumed office in 2022, the national debt had already surged by P6.8 trillion.