ADMINISTRATION lawmakers on Monday defended the budget cuts for the Department of Education (DepEd) and the removal of government subsidy for the Philippine Health Insurance Corporation (PhilHealth) under the proposed 2025 national budget.
House Deputy Majority Leader Paolo Ortega of La Union clarified that reducing the DepEd budget does not signify a lack of prioritization.
“A lower budget does not mean it is no longer a priority. DepEd remains one of the administration’s top priorities. Some programs need reassessment because they are not fully responsive to the people’s needs,” Ortega explained during a press conference.
Tingog Party-list Representative Jude Acidre highlighted DepEd’s underperformance in its computerization program as a key reason for the budget reduction.
He compared it to the Department of Public Works and Highways (DPWH), which received a larger allocation despite inefficiencies.
“The DPWH’s delays can be attributed to external factors like typhoons, while DepEd’s inefficiencies stem from internal program management. This distinction justifies the prioritization of infrastructure projects, which include building classrooms, evacuation centers, and hospitals essential for economic recovery,” Acidre stated.
PHILHEALTH SUBSIDY REMOVAL
Lawmakers also defended the removal of PhilHealth’s government subsidy, citing inefficiencies and unused funds.
Acidre pointed out that PhilHealth’s outdated case rate adjustment, unchanged since 2014, contributes to its shortcomings.
“In 2014, the case rate covered only 14% of the total hospital bill. Had PhilHealth updated its policies, coverage could now be at 30% to 40%. Congress assessed that existing funds are sufficient to cover its operations next year,” Acidre noted.
House Assistant Majority Leader Jefferson Khonghun of Zambales highlighted PhilHealth’s significant unused funds, amounting to ₱20 billion in 2023.
“Additional funding is not the solution. PhilHealth members should see improved benefits from their contributions, with increased coverage,” Khonghun added.
BUDGET REALIGNMENTS
The Bicameral Conference Committee realigned ₱10 billion from DepEd’s computerization program and scrapped PhilHealth’s government subsidy, citing its ₱600 billion reserve fund.
Lawmakers stressed that these adjustments aim to ensure efficient use of public funds while addressing national priorities.