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Manila Bulletin devider Philippines devider National devider Gov't to return P60-B PhilHealth excess funds if SC orders it, DOF assures Diokno, House

Gov't to return P60-B PhilHealth excess funds if SC orders it, DOF assures Diokno, House

Published Aug 18, 2025 06:11 pm

At A Glance

  • Akabayan Party-list Rep. Chel Diokno has received assurance from the executive branch that the government would restore Philippine Health Insurance Corporation (PhilHealth) funds amounting to P60 billion if the Supreme Court (SC) orders it.
Akbayan Party-list Rep. Chel Diokno (Facebook)
Akbayan Party-list Rep. Chel Diokno (Facebook)


Akbayan Party-list Rep. Chel Diokno has received assurance from the executive branch that the government would restore Philippine Health Insurance Corporation (PhilHealth) funds amounting to P60 billion if the Supreme Court (SC) orders it.
Diokno drew this commitment Monday, Aug, 18 from Department of Finance (DOF) Secretary Ralph Recto on the first day of deliberations on the P6.793-trillion National Expenditure Program (NEP) for 2026.
In his interpellation of the Development Budget Coordination Committee (DBCC), Diokno asked how the executive would respond in case the Supreme Court (SC) favors petitions questioning the legality of the transfer of the excess funds from PhilHealth.
"I understand Secretary Ralph that there are several cases in the court in the [SC] questioning the PhilHealth as well as the other the PDIC funds. My question is, what will happen if the court requires na ibalik yung mga pondong yun (to return those funds)? Does the government have a plan to address this?" asked the lawyer-turned-congressman.
Recto said the executive will follow such instructions regarding the funds of the state health insurer.
"If the [SC] decides that the executive branch or the national government will have to return this money, then naturally the national government will comply. We will put it in the budget, that budget will be passed by Congress and we will comply," the DOF chief replied.
Recto said the safe fiscal action in such a scenario would be to restore the funds the following sir.
"Now, if assuming that the decision is made in the middle of the budget year, then that will increase the deficit and it may affect our credit rating. Ergo, if we are to comply, we do it in the succeeding year's budget," he explained.
"That would cause a huge hole in the budget if that were to be the case, sir," Diokno said, to which Recto concurred.
The P60 billion was transferred to the national treasury in 2024.
The DOF is part of the DBCC, which on Monday discussed before the House Committee of Appropriations the macroeconomic assumptions of the latest NEP.
The P6.793-trillion proposed annual spending plan is the biggest in the country’s history.
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