The Department of Finance (DOF) said Monday it collected P88.6 billion from government-owned or controlled corporations (GOCCs) as of May 6, 2024, up by eleven times from roughly P8 billion recorded in the same period in 2023.
“These dividends form a major source of non-tax revenues for the government, making possible our goal of raising funds without the need to impose additional taxes on our people,” Finance Secretary Ralph Recto said.
“They help us hold down deficits and continue funding the President’s priority programs for the welfare of all Filipinos without having to borrow more,” he said.
Recto said he expects total dividend remittances to reach P100 billion by end-2024.
He said as a result of these dividend contributions, non-tax revenues have been on the rise, reaching P206.4 billion as of end-April, demonstrating an 85-percent increase from the same period in 2023.
Recto said they continued to grow alongside the government’s tax collections.
Data showed that as of end-April, the Bureau of Internal Revenue (BIR) collected P912.9 billion, a 16.3-percent increase from a year ago, while Bureau of Customs (BOC) collections grew 6.3 percent to P295.2 billion in the same period.
“We expect both our tax and non-tax revenues to dramatically increase over the coming months as we intensify our revenue mobilization efforts,” Recto said.
Recto lauded the GOCCs for not just remitting their contributions on time, but for also increasing their dividend payments to the national government from the minimum of 50 percent to 75 percent.
The top GOCCs that contributed at least P1 billion were the Land Bank of the Philippines (P32. 1 billion); Philippine Deposit Insurance Corp. (P10.7 billion); the Bangko Sentral ng Pilipinas (P9.2 billion); the Philippine Ports Authority (P5.0 billion); the Philippine Amusement and Gaming Corp. (P4.6 billion); the Manila International Airport Authority (P3.5 billion); Subic Bay Metropolitan Authority (P3.0 billion); Philippine Charity Sweepstakes Office (P2.7 billion); Philippine National Oil Company (P2.6 billion); National Transmission Corp. (P2.2 billion); and PNOC Exploration Corp. (P2.0 billion).
Also belonging to the billionaires club were Clark Development Corp. (P1.8 billion); Philippine Economic Zone Authority (P1.4 billion); Philippine Guarantee Corp. (P1.1 billion); Bases Conversion and Development Authority (P1.1 billion); Philippine Reclamation Authority (P1.0 billion); and Metropolitan Waterworks and Sewerage System (P1.0 billion).
“Notwithstanding the diversity of your missions, every peso of your contribution will ultimately go back to benefit every Filipino,” Recto told GOCCs.
Recto said the GOCC’s expected P100-billion contribution by year-end would significantly help, for instance, build 1,600 kilometers of farm-to-market roads; construct more than 8,000 new public classrooms; irrigate an extra 25,000 hectares of farmland; and extend a lifeline to more than 208,000 kidney 52,000 cancer patients with a month’s worth of free dialysis and chemotherapy treatments.
“All of these can be achieved by your generous contribution of P100 billion– big enough to transform the lives of our people and secure their future. But we can do so much more,” he said.
Secretary Recto expressed his gratitude to the officers and staff of GOCCs as well as the Secretaries overseeing them for their support and cooperation.
He also commended the Corporate Affairs Group of the Department of Finance (DOF), which oversees the government corporate sector, for ensuring that GOCCs are fiscally responsible partners of the government.
He also assured GOCCs of the DOF’s commitment to manage their contributions judiciously and with utmost transparency and accountability.
In turn, Secretary Recto urged GOCCs to continue striving for efficiency and to hold to the highest standards of corporate governance.
“We will not leave any room for incompetence and corruption,” he stressed.
Meanwhile, President Marcos, Jr. likewise assured the public that the dividends would be invested back into the economy in the form of growth-inducing activities that would significantly uplift the lives of every Filipino.
“[L]et me assure you that they will be carefully spent like the precious taxes that come from the sweat of their brow. It will be plowed back to them through projects and programs that will improve their lives today and also create a better tomorrow for our children. It will be invested back to growth-inducing activities that create jobs and harness opportunities. In the end, these dividends will yield more dividends, unleashing a virtuous cycle that lifts up those we serve to a higher standard of living,” the President said.