SolGen justifies PhilHealth fund transfer
MANILA, Philippines — Solicitor General Menardo Guevarra called the transfer of P60 billion in unutilized PhilHealth funds a “common-sense approach” in defending the move's legality and necessity before the Supreme Court.
According to Guevarra, the transfer of unused funds from the state insurerer is a more urgent way to finance priority government projects without resorting to additional borrowings or higher taxes.
Speaking before the High Court, the Solicitor General emphasized that Congress specifically authorized the move through Special Provision No. 1D of the 2024 General Appropriations Act, which directed government-owned and controlled corporations to review and reduce their reserve funds to reasonable levels to fund unprogrammed appropriations.
“Congress, in its wisdom, identified the fund balance of government corporations as a source of additional funds to finance the unprogrammed appropriations. The Department of Finance, in issuing Circular No. 003-2024, merely implemented this Congressional directive,” the government’s top lawyer said.
Gueverra underscored the urgent need to allocate resources responsibly, especially amid the country’s P15.8 trillion national debt.
"It might have been less complicated if the national government simply borrowed money. But then we must consider that, as of the end of February 2024, the national government debt was already recorded at P15.8 trillion. Every Filipino, young and old, rich and poor, able and disabled, is indebted in the amount of P139,000 each. This is rather heavy,” he said.
Instead of increasing this burden, Guevarra noted that the government opted to redirect unutilized funds, ensuring they were legally used for public benefit rather than remaining idle.
The Solicitor General also pointed out that PhilHealth’s fund balance — P89.9 billion in unused government subsidies from 2021 to 2023 — exceeded the total benefit claims of indirect contributors during the same period. The transfer, Guevarra added, did not affect PhilHealth’s ability to cover healthcare claims and even supported additional health-related programs under the unprogrammed appropriations.
“Indeed, our government will not be acting with common sense if it shelved other much-needed projects because one pocket is short on funds while knowing fully that there is abundance in the other.”
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