DOF wants to tap dormant funds for public projects

The Department of Finance (DOF) has unveiled plans to mobilize dormant funds held by state-owned corporations, aiming to bolster government initiatives in health, social services, and infrastructure development.

In a statement released on Monday, the DOF highlighted the strategic move to tap into surplus funds within government-owned and controlled corporations (GOCCs), emphasizing its fiscal responsibility in avoiding additional borrowing or tax burdens.

According to the DOF, accessing these funds will not compromise the financial stability of participating GOCCs nor hinder their service delivery capabilities.

For instance, the DOF cited the Philippine Health Insurance Corp. (PhilHealth), which holds approximately P500 billion in reserves that could be utilized for covering multi-year claims.

"The unused government subsidies within PhilHealth are a significant resource that can be strategically deployed without impacting its operational resilience," the DOF clarified.

The department assured that this initiative complies with all legal frameworks, including the General Appropriations Act of 2024, which mandates appropriations beyond initial executive proposals.

"The utilization of these funds, as exemplified by contributions from PhilHealth and other GOCCs, has already facilitated crucial disbursements, such as pandemic-era service allowances for frontline workers," the DOF stated.

Moreover, the DOF emphasized that the release of unused and excess funds is conducted under the oversight of the boards of PhilHealth and other involved entities, ensuring alignment with national budget priorities.

"These funds will support ongoing foreign-assisted projects and critical initiatives like infrastructure development, agricultural enhancement, and educational innovation," the DOF underscored.

Highlighting the importance of efficiently deploying dormant funds, the DOF stressed that such resources should actively contribute to national development without increasing fiscal pressures through taxation or debt escalation.

"Unlocking these dormant funds not only enhances public investment but also optimizes the operational efficiency of GOCCs, aligning with our goals of sustainable economic growth," the department concluded.