The Department of Finance (DOF) expressed willingness to comply if the Supreme Court (SC) would order them to return the Philippine Health Insurance Corporation (PhilHealth) and the Philippine Deposit Insurance Corporation (PDIC) budgets to the National Treasury.
During the Committee on Appropriations hearing on Monday, August 18, Akbayan Partylist Representative Chel Diokno asked Finance Secretary Ralph Recto what the agency’s plan would be if the high court requires them to return the funds. This aligns with several cases in the SC questioning the PhilHealth and PDIC funds.
“If the Supreme Court decides that the executive branch or the government will have to return this money, then naturally, the national government will comply. We will put it in the budget, that budget will be passed by Congress, and we will comply,” Recto said in response.
“If assuming, that the decision is made in the middle of the budget here, then that will increase the deficit, and it may affect our credit ratings,” he said, adding that if they were to comply, they would do it in the succeeding year's budget.
Diokno responded, stating, “That would cause a huge hole in the budget if that were to be the case, sir.”
Moreover, the solon stressed that the proposed 2026 budget indicates that it remains committed to fulfilling the objective of the Philippine development plan. This includes reinvigorating the job creation and accelerating poverty reduction.
“Pero sa nakikita po namin ay imbis na namumuhunan sa tao ay kulang ang inilalaan sa edukasyon, social protection, at health. Binabaan ang mga targets ng fiscal growth at ‘yung mga unprogrammed funds ay doon naka-park ‘yung ibang mahahalagang proyekto,” Diokno highlighted.
Aside from that, the lawmaker pointed out that PHP 270 billion is allocated for flood control projects. With this, Diokno questioned how they would achieve the objective of social transformation if other projects are not spotlighted in the proposed national budget.
“A big chunk of the proposed budget will actually go to the social services sector. Ito po yung sa education, sa health, and sa social protection. Siya pa rin po ang pinakamalaking part ng ating total budget,” the Department of Budget and Management (DBM) Secretary Amenah Pangandaman responded.
During Diokno’s interpellation, Pangandaman admitted that the country cannot keep up with international benchmarks in sectors such as: education, health, and social protection, due to budget shortfalls.
In contrast, the DBM announced during the ceremonial turnover of the 2026 National Expenditure Program (NEP) that the allocated budget for basic and higher education was increased monumentally to meet the United Nations Educational, Scientific and Cultural Organization (UNESCO) recommended education spending target of at least 4.0% of the country’s gross domestic product (GDP).
