Ensure GOCC, priority project funding next year, gov’t told

By John Victor D. Ordoñez, Reporter

THE PHILIPPINE government must ensure that funding for government-owned and -controlled corporations (GOCCs) and for the government’s priority projects are not diverted for other purposes next year, analysts said at the weekend, as Congress works on harmonizing the 2025 spending plan.

“Where budget integrity is concerned, the political leadership of the President is most critical,” Zy-za Nadine M. Suzara, a public budget analyst and former executive director of policy think tank Institute for Leadership, Empowerment, and Democracy, said in a Viber message.

“The President should veto questionable provisions in the national budget especially if those provisions relegate priority projects in the Unprogrammed Appropriations or undermine the very charters of GOCCs and government financial institutions (GFIs).

Lawmakers last week formed technical working groups to reconcile differences in their versions of the national budget next year as they try to ratify the measure by Dec. 9.

Senator and Finance Committee Chairperson Mary Grace Natividad S. Poe-Llamanzares earlier said President Ferdinand R. Marcos, Jr. aims to sign the budget legislation by Dec. 19.

She earlier told a news briefing that senators deleted a provision allowing the National Government to sweep unused funds of GOCCs, similar to one in this year’s budget that allowed the transfer of the Philippine Health Insurance Corp.’s (PhilHealth) P90-billion fund to the Treasury.

The excess PhilHealth funds would have been used to support unprogrammed appropriations worth P203.1 billion, which would support state health, infrastructure and social service programs.

The Supreme Court in October blocked the transfer of P29.9 billion, the last tranche of PhilHealth fund transfer, to the Treasury.

Senators have scrutinized the move, saying PhilHealth should have been working on increasing benefits for its members who find it hard to pay their medical bills.

“The main problem is that the government would rather do everything to maintain their flagship programs even at the risk of weakening institutions that serve social interests more directly,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat.

The Senate’s final version of the 2025 spending plan cut the PhilHealth’s budget to P64.42 billion from P74.43 billion as proposed in the counterpart House bill, based on a copy sent to reporters on Wednesday.

The Department of Health is allocated a budget of P285.51 billion next year, higher than the P217.38 billion under the National Expenditure Program proposed by the Budget department.

But, Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms (AER), said slashing PhilHealth’s budget may bear the burden on direct contributors to fund the agency’s programs.

“Moreover, the amount that Congress is allocating to PhilHealth is smaller than the excise taxes collected from sin taxes, specifically from tobacco taxes and sweetened beverage taxes that should go to PhilHealth,” he said in a Facebook Messenger chat.

In August, the Senate passed on final reading a bill that seeks to cut PhilHealth premiums to 3.25% next year from 5% this year under the Universal Healthcare Act.

The measure sets PhilHealth premium contributions at 3.25% this year for those with a monthly income of P10,000 to 50,000, with incremental increases of 0.25% each year.

“In a general sense, there should be scorecards for GOCCs relating to their efficient use of their excess funds, particularly for capital expansion and broadening services,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

If GOCCs fail in this scorecard system, this should be the basis for them to require the return of unused or excess funds to the national government.”