MANILA, Philippines — Former finance chiefs expressed their support for the return of unused funds of government-owned or controlled corporations (GOCCs), a move which they believe would bring substantial benefits to the Filipino people.
In a joint statement, former prime minister and Finance secretary Cesar E. A. Virata and former Finance secretaries Jose Pardo, Alberto Romulo, Jose Isidro Camacho, Margarito Bustaliño Teves and Cesar Purisima said mobilizing the excess funds of GOCCs would enable important public projects that could strengthen the economy and ensure long-term gains through more jobs, higher incomes and help reduce poverty.
They pointed out that as past Finance secretaries, they were “acutely aware of the heavy responsibility the DoF bears in funding the nation’s dreams and aspirations for the Filipino people.”
“We have firsthand experience with the underlying challenges and difficulties of generating sufficient revenues to fund critical initiatives that support economic growth,” the former finance chief said.
“In our view, it is in the public’s best interest for a portion of excess GOCC funds to be mobilized efficiently, rather than imposing additional taxes or increasing public debt that would burden future generations,” they added.
They further pointed out that if the excess GOCC funds remain unused, it would benefit no one. At the same time, taxpayers will essentially end up paying interest on these idle funds.
“Responsible public financing requires considering opportunity costs. If unused funds are left dormant, the potential benefits are lost. Every unused peso represents development denied for Filipinos,” the former finance chiefs warned.
“The cost of delaying crucial projects is a burden our people cannot afford – diminished public services, slower growth, more debt, and higher deficits,” they added.
The DoF gave its assurance that it would only access a part of GOCC excess funds, while maintaining safeguards to ensure GOCCs retain adequate resources well beyond prudent levels.
The Finance department further assured that it would abide by whatever decision the Supreme Court would make on the case pending before it.
Current Finance Secretary Ralph Recto reiterated that the use of excess GOCC funds, particularly the idle funds of the Philippine Health Insurance Corporation (PhilHealth) and the Philippine Deposit Insurance Corporation (PDIC), would not compromise their capability to fulfill their respective mandates.
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