Utilizing the so-called “hibernating” funds of government-owned and controlled corporations (GOCCs) for public programs could help the Philippines reach its growth rate target faster, according to Department of Finance (DOF) Secretary Ralph Recto.
Recto made the remark in response to concerns of health reform advocates on the DOF circular ordering the remittance of unused PhilHealth funds.
Recto said the idle funds could add about 0.8 percent of this year’s growth target by allocating it to other programs.
“Nakita namin sa aming pagsisiyasat sa DOF na makakatulong ‘to sa lalong paglago ng ating ekonomiya by more or less 0.8 percent,” Recto said during the 2024 Post-SONA Discussions in Pasay City on Tuesday.
“Ibig sabihin mas madaling makamit natin ‘yung six percent growth o ‘di kaya 6.5 percent growth rate sa taong ito,” he noted.
Allocating the idle subsidies could also generate additional 600,000 job opportunities, according to Recto.
He said the issuance of the order is legal, with the DOF having consulted the Governance Commission for GOCCs (GCG), the Commission on Audit (COA, and the Office of the Government Corporate Counsel (OGCC) beforehand.
“Ang balik sa amin ng tatlong ahensya ng pamahalan, legal lahat ito,” Recto said.
“Siunusundan lang natin ‘yung utos ng Kongreso. Nakapaloob sa budget sa 2024 na kung saan sinasabi ng Kongreso na dapat ang DOF mag-issue ng circular para magamit nga itong mga pondong ito na posibleng hibernating lang o natutulog lang at hindi nagagamit ng ibang mga GOCC,” Recto pointed out.
In an earlier statement by the DOF, the agency noted that “the return of unused rail guards and excess funds was approved by the PhilHealth and PDIC’s respective boards.” PND
Source: PCO
