President Marcos' chief economic manager said that his directive to remit unused funds from government-owned and controlled corporations (GOCCs) is prudent to improve resource management and minimize reliance on additional borrowing.
In a recent radio interview, Finance Secretary Ralph G. Recto explained that reallocating these unused GOCC funds would better serve priority government programs in health, education, and infrastructure, rather than letting them remain unutilized.
Recto, however, recognized the concerns expressed by various sectors regarding the potential use of unused government subsidies from the Philippine Health Insurance Corp. (PhilHealth).
“Nakikinig naman tayo sa lahat ng nagsasalita. Nakikinig tayo sa mga medical practitioners natin. Nakikinig tayo sa mga kumukontra. Pinakikinggan natin ang Kongreso. Lahat pinakikinggan natin dahil ito ay ayon sa ating demokrasya,” he said.
[We are listening to everyone who is speaking. We are listening to our medical practitioners. We are listening to those who oppose. We are listening to Congress. We are hearing everyone because this is in line with our democracy.]
However, the finance chief noted the need to prioritize efficient spending, as these unused funds are essential for addressing the needs of 115 million Filipinos by financing crucial government programs.
To illustrate his point, Recto compared the mobilization of unused funds to idle police officers stationed at a precinct while crime-ridden areas remain in need of their presence.
“Halimbawa, maraming krimen sa kalsada at merong mga pulis ang natutulog, halimbawa lang sa general headquarters; hindi ho ba dapat i-deploy mo ‘yung mga pulis na ‘yan na natutulog lang, halimbawa doon sa lansangan kung saan may krimen,” he stated.
[For example, if there is a lot of crime on the streets and some police officers are asleep, say, at the general headquarters; shouldn't you deploy those officers who are just sleeping to the streets where crime is happening?]
“So, ihahalintulad ko rin ito ‘sa pondo ng gobyerno na natutulog lang na dapat pakinabangan sa dami ng pangangailangan na 115 million na Pilipino,” he pointed out.
[So, I would compare this to government funds that are just lying idle, which should be utilized given the needs of 115 million Filipinos.]
“Kung may perang natutulog, hindi napapakinabangan sa dami ng pangangailangan—halimbawa sa edukasyon, sa kalusugan, sa infrastraktura, sa ayuda na dapat ibigay sa mga mamamayan natin—ay dapat gamitin natin yan nang husto,” he further stated.
[If there is money lying idle and not being used despite the numerous needs—such as in education, health, infrastructure, and aid that should be given to our citizens—we should make full use of it.]
"So, I would compare this to government funds that are just lying idle, which should be utilized given the needs of 115 million Filipinos," he pointed out.
"If there is money lying idle and not being used despite the numerous needs—such as in education, health, infrastructure, and aid that should be given to our citizens—we should make full use of it," he further stated.
The government currently spends P15.8 billion a day, of which only P11.8 billion a day comes from revenues, and thus has to borrow P4 billion a day to cover its programs and projects, according to Recto.
So far, some P20 billion from unused funds of PhilHealth has already been remitted to the national government and funded the health emergency allowances of medical workers, Recto said, noting that the transferring of unused funds will come in tranches instead of "one time, big time".
The funds transferred out of the GOCCs will also be used to co-finance foreign-assisted and other big-ticket infrastructure projects.