Albay 2nd district Rep. Joey Salceda (Ellson Quismorio/ MANILA BULLETIN)

Economist solon Albay 2nd district Rep. Joey Salceda says there's "simple" logic behind the Department of Finance's (DOF) intention to use excess funds of the Philippine Health Insurance Corporation (PhilHealth) to bankroll unprogrammed appropriations.

"PhilHealth regularly receives a subsidy from the national government on top of the premiums it collects from its members. In other words, that’s taxpayer money, not contributor money," Salceda said.

"I think the reasoning of the DOF is that, if taxpayer money is sleeping in PhilHealth, it’s better to use that money for other needs rather than borrow with interest. It saves the taxpayer money. It’s that simple," he said.

PhilHealth is the state-run health insurer. It collects premiums from its members.

"The GAAs (General Appropriations Act) under President Marcos have already given PhilHealth P162 billion in taxpayer-funded subsidies. If there’s still excess money, then that means we gave too much subsidies," noted the Bicolano.

"The other option, since PhilHealth doesn’t spend all the money given to it, is to stop giving it a subsidy every year. I prefer our current approach of giving it a sizable subsidy at the start of the year, and then withdrawing the money later during the year if it proves to be too much," said Salceda.

"We can’t have excess money sleeping around our GOCCs (Government Owned and/or Controlled Corporstooms) while withholding that same money from public investment. Low government spending reduces growth. Reduced growth creates poverty. Poverty creates hunger. Hunger creates disease," the Committee on Ways and Means chairman said.

At any rate, Salceda said PhilHealth will still get a subsidy for next year.

"The budget season is about to start. If it can spend all that money next year, then there is nothing for the DOF to withdraw. No issue," he said.