GOCC remittances top P100 billion

Dividends from government-owned or -controlled corporations (GOCCs) exceeded PHP100 billion this year, data from the Department of Finance (DOF) showed in a report by Philippine News Agency.

Data released Tuesday showed that to date, the national government collected PHP105 billion from state-run firms.

The amount already exceeded the PHP100 billion earlier projection of the DOF.

Land Bank of the Philippines was the biggest source of remitted dividends during the period with PHP26 billion.

Other top contributors include the Bangko Sentral ng Pilipinas (PHP18.9 billion); Philippine Amusement and Gaming Corporation (PHP12.67 billion); Philippine Deposit Insurance Corporation (PHP10.13 billion); Power Sector Assets & Liabilities Management Corp. (PHP8.95 billion); Philippine Ports Authority (PHP5.20 billion); Manila International Airport Authority (PHP3.32 billion); Clark Development Corporation (PHP2.48 billion); Philippine National Oil Company (PHP2.42 billion); and Bases and Conversion and Development Authority (PHP2.20 billion).

In a recent press chat, Finance Secretary Ralph Recto said dividends from GOCCs will be PHP90 to PHP110 billion higher than the PHP20 billion target set under the Budget of Expenditures and Sources of Financing (BESF) 2025.

"For dividends, plus PHP90 to PHP110 [billion] above the target based on the BESF," he said.

GOCC dividends are a major source of non-tax revenues for the national government to fund President Ferdinand R. Marcos Jr.’s priority programs without the need to impose new taxes.

Under Republic Act 7656 or the Dividend Law, GOCCs are required to remit at least 50 percent of their net earnings during the preceding year as dividends to the national government.

To maximize non-tax revenue, the DOF earlier requested GOCCs to increase their share to 75 percent.