Recto: Tapping unused GOCC funds to boost PH economic growth

Senate President Juan Miguel “Migz” F. Zubiri sponsors the ad interim appointment of former Sen. Ralph Recto as secretary of the Department of Finance during the Commission on Appointments’ plenary Wednesday, March 13, 2024. Zubiri said he supports Recto, a dear friend, true patriot and a former senator, for the post of finance secretary. (Bibo Nueva España/Senate PRIB)

MANILA – Finance Secretary Ralph Recto on Tuesday said the utilization of idle funds from two government-owned and controlled corporation (GOCC) will help create more employment and boost economic growth.

Recto, during the post-State of the Nation Address (Sona) Discussions at the Hilton Hotel in Pasay City, said at least P200 billion in idle funds are currently with the Philippine Deposit Insurance Corporation (PDIC) and Philippine Health Insurance Corp. (PhilHealth).

READ: Recto assures public: Transfer of PhilHealth’s P20B excess funds legal

In a memorandum circular issued by the DOF earlier this year, it ordered PhilHealth to remit P89.9 billion of unused government subsidies to the national treasury to fund projects in health and social services.

“Tiningnan natin na kung ito ay gagamitin natin para dun sa mga naka-priority sa unprogrammed pa, makakatulong ba ito sa ekonomiya ng ating bansa, makakapaglikha ba ito ng mas maraming trabaho (We looked at it to see that if ever we use it for those prioritized but unprogrammed, will this help the economy of our country, will this create more jobs),” Recto said.

“Nakita namin sa pagsisiyasat ng DOF na makakatulong to sa lalong paglago ng ating ekonomiya by more or less 0.8 percentage point. Ibig sabihin mas madaling makamit natin yung 6 percent growth rate natin o di kaya 6.5 percent growth rate sa taong ito at dagdag pa dyan makakalikha ng mahigit 600,000 trabaho (Based on the assessment of the DOF, it will further help in the growth of our economy by more or less 0.8 percentage point. This means that it is easier for us to achieve our 6 percent growth rate or maybe 6.5 percent growth rate this year and in addition to that, it will create more than 600,000 jobs),” he said.

Recto also clarified that the DOF only followed Congress’ order to issue a circular, allowing the use of hibernating GOCC funds.

He added the DOF also consulted the Governance Commission for GOCCs (GCG), Office of the Government Corporate Counsel (OGCC), and the Commission on Audit (COA).

“Ang balik sa amin ng tatlong ahensya ng pamahalaan legal lahat ito (These three agencies told us that it is legal),” Recto said.

READ: Quimbo: PhilHealth profit is too high, but benefits members get are too low

Recto reiterated that in case of PhilHealth, it currently has a P500-billion benefit chest that can be used to fund multiple-year claims.

In a separate interview on the sidelines of the post-Sona discussions, Recto clarified that of the P89.9 billion from PhilHealth, only P20 billion was collected and used to finance the benefits of frontline workers.

“So meron tayong schedule ng pagtanggap ng pondo niyan kung sakasakali. Meron din tayong schedule ng pagtanggap ng pondo sa PDIC to be able to finance… So, hindi one time big time yan. That’s for the rest of the year. You have six more months bago makolekta lahat yan (So we have a schedule for receiving that fund just in case. We also have a schedule for receiving funds from the PDIC to be able to finance… So it’s not a one time, big time. That’s for the rest of the year. You have six more months before all of that is collected),” Recto said.

Non-tax revenues

Recto said the government is aiming to double its revenue from non-tax collections this year.

“We tend to double our collections from non-tax revenue this year. Last year, it was about P200 billion. This year, we will get about P400 billion,” Recto said during the 2024 Post-Sona discussions.

Recto said the government is on track to hit this year’s revenue target of P4.25 trillion.

A large portion of the revenue comes from remittances from GOCCs and other non-tax revenues including privatization, income from the treasury and others.

“We are on track to hit our fiscal target for the entire year and that’s roughly about P4.250-t(rillion),” Recto said.

“In the first six months of the year, we’ve collected more or less half of that. A large portion is also from revenue. Essentially, this is from GOCC dividends, privatization, income from the treasury,” he added.

Dividend collection

Data released by the Finance department, meanwhile, showed that dividend collection from GOCCs as of July 15 this year already amounted to P95.54 billion, up from the P63.02 billion collected in the same period last year.

Top-contributing GOCCs during the period include the Land of the Philippines (P32.1 billion), Bangko Sentral ng Pilipinas (P13.2 billion), and the PDIC (P10.7 billion).

Other GOCCs with high remittances include the Philippine Ports Authority, Philippine Amusement and Gaming Corporation, Manila International Airport Authority, Subic Bay Metropolitan Authority, Philippine Charity Sweepstake Office, Philippine National Oil Company, and National Transmission Corporation.