The government will comply if the Supreme Court (SC) orders the return of Philippine Health Insurance Corporation (PhilHealth) funds to unprogrammed appropriations, Finance Secretary Ralph Recto told lawmakers on Monday.
At the House appropriations committee briefing of the Development Budget Coordination Committee (DBCC), Akbayan party-list Rep. Chel Diokno asked about the looming SC ruling on petitions seeking the return of PhilHealth’s excess reserve funds, estimated at ₱60 billion.
“I understand Secretary Ralph that there are several cases in the court in the Supreme Court questioning the PhilHealth as well as the other the PDIC funds. My question is, what will happen if the court requires na ibalik yung mga pondong yun? Does the government have a plan to address this?” Diokno asked.
“If the Supreme Court decides that the executive branch or the national government will have to return this money, then naturally the national government will comply,” Recto replied.
Recto admitted, however, that such compliance could create a “huge hole” in the budget. He said the government would prefer to realign the funds in the following year’s budget instead of midyear to avoid a wider fiscal deficit and a possible hit to the country’s credit rating.
“We will put it in the budget, that budget will be passed by Congress and we will comply. Now, if assuming that the decision is made in the middle of the budget year, then that will increase the deficit and it may affect our credit rating. Ergo, if we are to comply, we do it in the succeeding year’s budget,” Recto explained.
Petitioners are also demanding the return of ₱104 billion from the Philippine Deposit Insurance Corporation (PDIC).
The SC concluded oral arguments on the issue in April 2025, with Justice Rodil Zalameda questioning the validity of the transfers and whether PhilHealth’s funds had been mixed with other items in the national treasury.
Back then, Recto defended the move: “We cannot, in good conscience, allow funds to languish in bank accounts as our nation’s needs multiply daily.”