By Francis Allan L. Angelo
The Department of Finance (DOF) announced a strategic move to utilize billions in unused and idle funds from government-owned and controlled corporations (GOCCs) to finance critical public projects in health, social services, and infrastructure.
The initiative aims to promote economic growth and alleviate poverty without resorting to additional borrowing or imposing new taxes.
In a statement, the DOF emphasized that reallocating these excess funds will not compromise the operational viability of the participating corporations or their service delivery.
For instance, PhilHealth retains a P500 billion benefit chest to cover multiple-year claims, ensuring continuous support for its members.
“This prudent fiscal approach ensures that surplus funds, which have been lying idle, are put to good use for urgent national projects. These funds do not come from member contributions but from unutilized national government subsidies,” the DOF said in a statement.
The initiative aligns with the General Appropriations Act of 2024, adhering to legal frameworks and approvals from GOCC boards.
Legal opinions from the Office of the Government Corporate Counsel (OGCC) further support the initiative.
The DOF noted that the remittance of unused funds has already enabled the Department of Budget and Management (DBM) to release P27.5 billion to settle 5.04 million claims for COVID-19 service allowances to frontliners.
Similarly, the Philippine Deposit Insurance Corporation (PDIC) has contributed to the revenue-raising effort, maintaining legal compliance.
The redirected funds will support various ongoing and planned projects, including the Metro Manila Subway Project, the North-South Commuter Railway System, the PNR South Long Haul Project, and other infrastructure developments.
Additionally, funds will aid the Support to Parcelization of Lands for Individual Titling (SPLIT) Project, the Philippine Fisheries and Coastal Resiliency Project, and the Philippine Multi-Sectoral Nutrition Project, among others.
“We cannot afford to let excess funds lie dormant while there are pressing public needs. This move allows us to invest in the nation without imposing additional taxes or increasing our debt burden,” DOF said.
