Government-owned and controlled corporations are expected to generate a total financing deficit of about P42.5 billion this year, down from P90.7 billion last year.
According to Finance Secretary Cesar V. Purisima, however, the DOF would like to have a formal and standardized mechanism where the department would be able to participate in the budget programming of government corporations.
"If these corporations are going to generate deficits that the National Government will have to fund, we want to have a say in it," Purisima told reporters. "Right now, it’s very loose and informal. I want a more structured and deliberate process," he added.
Purisima compared the process to a parent company of a private conglomerate with a number of subsidiaries. "The NG will be like the parent company of these GOCCs," he said. "Of course the GOCCs will retain the same degree of autonomy but we will have a say in their budget programming."
According to Purisima, the new policy would be contained in an executive order that would henceforth apply to all GOCCs.
The financing deficit of GOCCs ultimately impact the CPSD which Purisima said should fall to 2.5 percent of gross domestic product (GDP) this year, a revised target that accelerated the 4.8 percent target originally set for 2005.
In 2004, the DOF reported that GOCCs, particularly the 14 monitored non-financial government corporations (MNFGCs) were expected to generate a total of P125 billion in financing deficit but the actual amount was lower at P90.7 billion.
Finance Undersecretary Nieves Osorio told reporters that in 2005, the financing deficit of these corporations are expected to go further down to P42.5 billion.
"We are examining all the government corporations to determine exactly how they are able to reduce their financing deficit," Osorio said. "Some GOCCs are able to do it because they do not achieve their set targets but some are able to do it and still achieve their targets."
On top of the list, according to Osorio, are the National Power Corp. (Napocor) and the National Food Authority (NFA) whose mandate is to buy domestic palay and sell rice at subsidized prices.