Legarda seeks full restitution of PDIC and PhilHealth funds in 2027 budget

MANILA, Philippines—Sen. Loren Legarda has renewed her push for the full restitution and proper allocation of funds “legally intended” for the Philippine Deposit Insurance Corporation (PDIC) and the Philippine Health Insurance Corporation (PhilHealth).

The call comes as Congress deliberates on the proposed P7.2-trillion budget for 2027.

“Our national budget must reflect our responsibility to protect the health and financial security of Filipinos,” Legarda said in a recent press release.

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“Funds intended for healthcare and deposit insurance must be preserved and properly allocated. These are obligations we must uphold to maintain public trust in our institutions,” she noted.

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Legarda lamented that only P57 billion of the ₱107.2 billion remittance from the  PDIC’s Deposit Insurance Fund to the National Treasury has been recommended for restoration under the 2027 budget bill through unprogrammed appropriations (UA).

The release of the UA remains subject to applicable conditions, the senator pointed out, citing the Supreme Court’s recent ruling on the use of these funds.

“Funds intended to protect depositors should not be left dependent on uncertain funding conditions,” Legarda remarked.

“The restitution of PDIC’s reserves must be given serious consideration in the national budget to ensure that the financial protection of ordinary Filipinos is not compromised,” she further said.

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Legarda also raised concerns over PhilHealth’s “continuing funding deficiencies,” citing in particular the “cumulative shortfall in legally earmarked sin tax revenues” projected to reach ₱133.2 billion by 2027.

The amount is on top of the  ₱106.9 billion in unpaid statutory shares from the Philippine Charity Sweepstakes Office and the Philippine Amusement and Gaming Corporation, the senator added.

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“These funds are earmarked by law to provide healthcare and financial protection to our people. Their allocation should not be treated as discretionary when the law already establishes their intended purpose,” she said.

The senator then underscored “the need to respect the statutory purposes of funds reserved for public protection” as she recalled the Supreme Court’s decision on the transfer of P60-billion excess funds from PhilHealth to the National Treasury in 2024.

In 2025, the  high court declared the transfer of the funds unconstitutional, and ordered its return to Philhealth.

Legarda, who has been on medical leave since August, remains optimistic that these funding gaps will be addressed during the budget deliberations.

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She hopes that both the PDIC and PhilHealth will be given the resources necessary to fulfill their  mandates. /apl