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DOF says impact of PCSO closure on Universal

Healthcare minimal
Published July 29, 2019 11:49 AM
By JON VIKTOR D. CABUENAS,GMA News

The prolonged suspension of all gaming operations tied to the Philippine Charity
Sweepstakes Office (PCSO) is not going to have a significant impact on funding the
universal healthcare program, the Department of Finance (DOF) said Monday.

“Ito pong PCSO share sa universal healthcare financing ay for the first year of
implementation na P257 billion ‘yung kailangan natin, P3 billion ‘yung galing sa
PCSO. So that’s less than 1.2% of the requirement for universal healthcare,” Finance
Assistant Secretary Antonio Lambino II said.

The PCSO is a government-owned and -controlled corporation mandated to raise

and provide funds for health programs, medical assistance and services, and
charities of national character.

President Rodrigo Duterte signed the Universal Healthcare bill into law,
guaranteeing all Filipinos equal access to goods and services in healthcare.

To be implemented in 2020, the law will be funded under the Department of

Health’s annual budget, as well as sin tax revenues, Philippine Amusement and
Gaming Corp. (PAGCOR), PhilHealth members’ contributions, and PCSO funds.

On Friday, Duterte ordered all gaming operations—including franchises and 

holders of licenses or permits—related to the PCSO to stop operating.

Under its charter, the PCSO must allocate 55 percent of its revenues to prizes, 30
percent to its charity fund, and 15 percent to operational expenses.

The PCSO has reported P63.55 billion in total revenue last year, up from P52.9 billion
in 2017.
“Over five years, ‘yung contribution dapat ng PCSO ay P16.6 billion out of the total
budget for universal healthcare na P1.47 trillion—again, less than 1.2%,” Lambino
said.

The DOF is focusing on boosting sin tax revenues.

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“Ang ginagawa namin ngayon, naka-focus kami sa karagdagang sin taxes,” Lambino
noted.

Duterte signed into law on Thursday the measure increasing excise taxes on
tobacco products.

Once the house-cleaning at PCSO is done, higher revenues are expected from the
agency.

“Ang nakikita natin ay ‘pag naayos na po ‘yan ay baka mas malaki pa. It’s very likely
that contribution of PCSO to resources na available sa atin para sa pagbigay ng
serbisyo sa ating mga kababayan ay mas malaki pa,” he said.

On the part of Pacific Online Systems Corp. (LOTO), the impact of Duterte’s order on
its business has yet to be determined at this point. LOTO provides the PCSO with
lottery equipment.

“Unfortunately, to date, Pacific Online still has no information on the suspension of

PCSO’s gaming operations beyond those that have been conveyed through the
public statements made by the President as well as of the PCSO general manager,”
it said in a regulatory filing submitted by assistant corporate secretary Jason
Nalupta.

“The corporation, however, has been in constant coordination with the PCSO
management and is fully supportive of the latter’s efforts to seek the President’s
reconsideration of his decision,” it added.

LOTO also provides the PCSO with technical support under a maintenance repair
agreement, a deal that is co-terminus with its equipment lease deal. —VDS, GMA
News

View on GMA News

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