The Marcos administration increased its financial backing for the National Irrigation Administration (NIA) while scaling back support for the Philippine Health Insurance Corp. (PhilHealth) in the first half of the year.
Data from the Bureau of the Treasury revealed that the national government allocated a total of P67.2 billion to support operations of several government-owned and -controlled corporations (GOCCs) from January to June.
The amount was 5.5 percent higher compared to the previous year's expenditure of P63.7 billion.
However, a significant portion of these funds, totaling P36.5 billion, was channeled to the NIA, the agency tasked with developing the country's irrigation infrastructure.
Conversely, PhilHealth, the entity entrusted with managing the country’s universal health care program, experienced a substantial reduction in government subsidies.
Treasury records showed that PhilHealth received a mere P260 million in subsidies since the start of the year, compared to the P15 billion it obtained in the same period in 2023.
The Treasury document revealed that the subsidy allocated to PhilHealth was dispersed in June, whereas NIA began receiving monthly support from the government starting in February.
NIA received approximately P7.09 billion in February 2024, followed by P3.22 billion in March, P11.42 billion in April, P7.27 billion in May, and P7.5 billion in June.
In April, the DOF directed PhilHealth to transfer unused subsidies totaling P89.9 billion back to the Treasury.
Finance Secretary Ralph Recto said it is crucial for GOCCs like PhilHealth to utilize surplus funds for public investments rather than letting them sit idle.
Recto, however, assured that transferring these funds will not jeopardize PhilHealth's financial stability or its ability to provide mandated services.
Even after the transfer, Recto noted that PhilHealth still maintains a significant reserve fund of P500 billion, ensuring that it can cover claims over an extended period.
In 2023, PhilHealth and NIA were the top recipients of the government's P163.53 billion in subsidies to GOCCs, collectively receiving 56 percent of the total amount, which equates to P91.48 billion.
During that same year, PhilHealth received P50.74 billion in subsidies, while NIA secured P40.74 billion in government funding.