Cebu Rep. Eduardo Gullas believes that additional cash dividends from government-owned or controlled corporations (GOCCs) could help fund the Bayanihan 3 bill seeking to stimulate the economy.
The bill would provide P420 billion in subsidies to families, businesses, workers, farmers, students and teachers adversely impacted by the coronavirus disease 2019 (COVID-19) pandemic.
“Right now, under the law – Republic Act 7656 – GOCCs are required to declare as cash dividends and remit to the national treasury at least 50 percent of their (prior year’s) net earnings,” said Gullas, a House appropriations committee member, in a statement Sunday.
“However, under the same law, the President, upon the recommendation of the Secretary of Finance, may increase the dividend payout to any rate higher than 50 percent for all covered GOCCs,” he said.
“Despite the COVID-19 crisis, a number of GOCCs are still making good money and are a position to pay out incremental dividends to the national treasury,” Gullas added.
He cited the case of the Bangko Sentral ng Pilipinas being swamped by private corporations applying and paying for new licenses to establish digital banking and electronic money platforms “amid the dramatic shift to online transactions.”
The P420 billion the Bayanihan 3 bill seeks to provide includes a P108-billion social amelioration for households; a P100-billion capacity building assistance for badly affected businesses in critical economic sectors; a P70-billion aid for farmers; a P52-billion wage subsidy for workers in small businesses;
A P30-billion grant to displaced workers; a P30-billion internet access allowance for students and teachers; P25 billion for COVID-19 treatment and vaccines; and P5 billion for rehabilitation of communities distressed by recent typhoons and floods.
Citing the Department of Finance, Gullas said 57 GOCCs paid an aggregate of P157 billion in cash dividends to the national treasury in 2020.