In a discussion about sleeping funds, Department of Finance (DOF) Director Euvimil Nina Asuncion said the Philippine economy’s Gross Domestic Product (GDP) is expected to increase by 0.7% once the unused funds of Government-Owned and Controlled Corporations (GOCCs), such as PhilHealth, are reallocated and put to use.
“Kung gagamitin natin ‘yung funds na ito we are looking at point seven percent GDP growth. So, lalaki ang ekonomiya natin, ibig sabihin nito mas marami tayong jobs na mabibigay sa mga tao. Parang tinitingnan namin, around 600,000 jobs ang mage-generate nito,” Asuncion said in an episode of Malacañang Insider on Monday.
She said these funds are to be used in other areas of the economy, such as infrastructure and education, among others, which are also expected to generate more jobs for the Filipino people and additional revenues for the government.
“Additional revenues din ‘to for the government. When you spend for programs or projects, this translates to revenues din. So, may tax collection din tayo dito. Around 23 to 24 billion pesos,” Asuncion added.
According to Asuncion, spending these sleeping funds on other government projects can help prevent the country from acquiring more loans that will eventually affect the people through tax adjustments.
“Ang mangyayari parang instead na gamitin na natin kung ano na ‘yung nandiyan, mangungutang tayo or kailangan po natin magtaas ng buwis,” Asuncion said while explaining the downside of neglecting unused funds and recommending the use of other purse that are readily available.
Asuncion highlighted the government’s efforts to keep loans at a minimum, which can be directly supported by utilizing these sleeping funds through remittances to the National Treasury and reallocation to other government projects as stipulated in the General Appropriations Act (GAA).
Asuncion said that PhP30 billion worth of remittances has been received by PhilHealth.
These sleeping funds from PhilHealth are excess subsidies from the government that were previously provided due to provisions of laws such as the sin tax law. PND
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